May 5, 2010 / 12:48 PM / 8 years ago

UPDATE 2-Clean Harbors says premature to predict oil-spill gains

* Says too early to predict extent of involvement in GoM

* Says premature to speculate on rev from oil spill

* Q1 EPS $0.40 vs est $0.42

* Keeps FY rev outlook

* Shares down 4 pct (Recasts; adds conference call details, share movement)

BANGALORE, May 5 (Reuters) - Clean Harbors Inc (CLH.N), which is involved in the Gulf of Mexico (GoM) oil spill clean-up, said it was too early to predict the extent of its involvement and potential revenue from the activity.

Shares of the company which rose about 21 percent since the April 21 rig explosion to May 3, however, pulled back about 10 percent after that, suggesting that investors were reassessing their initial optimism. [ID:nSGE6440JP]

Clean Harbors, a waste management services company, has already deployed a number of resources, including about 300 people on-site and said “a huge logistics program” was in progress to mobilize more resources.

“The full scale of the event will likely be playing out over the next several weeks and months,” the company said on a conference call. It added that it would be “premature” to speculate on the revenue potential from the activity.

The company said that second and third quarters are usually the busiest quarters for its environmental business, but it will be “able and willing” to deploy additional resources in the GoM, if needed.

Clean Harbors, which received a large number of clean-up contracts after Hurricane Katrina, said the oil spill was different.

    “We really didn’t make any money on (Katrina) work. This is a little different,” it said.

    Apart from clean-up work, the company may also see a business opportunity in oil disposal. “If there’s a sizable quantity of oil to be moved, we certainly can help in that recycling effort,” Clean Harbors said.

    The company is currently getting work from various organizations, including state and federal governmental agencies for the after-spill activity. [ID:nSGE6420IN]

    “The government recently has given the states federal money to help deal with the potential spills coming ashore, so we’re also getting state agencies calling us,” it added.

    Clean Harbors posted a quarterly profit that missed analysts’ estimates by two cents, hurt by unfavorable weather conditions, but kept its annual revenue outlook. [ID:nASA00BFD]

    Shares of the company were down 4 percent at $61.20 Wednesday afternoon on the New York Stock Exchange. (Reporting by Vinay Sarawagi and Thyagaraju Adinarayan in Bangalore; Editing by Roshni Menon, Unnikrishnan Nair)

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below