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UPDATE 2-Clean Harbors Q2, FY rev view ride on spill response
August 4, 2010 / 12:40 PM / in 7 years

UPDATE 2-Clean Harbors Q2, FY rev view ride on spill response

* Q2 adj EPS $1.48 vs est $0.87

* Q2 rev more than doubles to $471.6 mln vs est $422.3 mln

* Oil spill response contributes 23 pct to Q2 rev

* Sees FY revenue of $1.60 bln-$1.65 bln

* Raises FY capex view to abt $80 mln (Adds conference call details, updates shares)

BANGALORE, Aug 4 (Reuters) - Clean Harbors Inc’s (CLH.N) quarterly results zoomed past estimates, boosted by its involvement in clean-up operations related to the Gulf of Mexico oil spill, prompting the waste-management company to raise its full-year revenue view.

The oil-spill response, which had driven shares of companies like Clean Harbors and Nalco Holding NLC.N in recent months, contributed $109 million, or 23 percent, to Clean Harbors’ second-quarter revenue.

Click for related stories - [ID:nSGE6440JP] [ID:nSGE6420IN]

Clean Harbors also raised its 2010 capital expenditure view to about $80 million, from its earlier range of $65 million to $70 million, citing its role in the spill clean-up.

“We certainly are getting new assignments as oil is found in differeNt areas and as (customers) reduce the size of the response groups down there,” a company executive said on a conference call.

The company, however, sees oil spill response-related activities -- which mainly came through seven customers -- to reduce in the third quarter and wind down to significantly lower levels in the fourth quarter.

On Wednesday, oil company BP (BP.L) (BP.N) claimed “a significant milestone” in efforts to plug its leaking well for good, ahead of a U.S. government report that will show most of the spilt crude is already gone. [ID:nLDE67310T]

Clean Harbors said it was conservative in its outlook given the ever-changing nature of the oil spill, and forecast 2010 revenue of $1.60 billion to $1.65 billion, including revenue through the third quarter from the spill.

It had earlier forecast $1.40 billion to $1.45 billion.

Analysts on an average were expecting full-year revenue of $1.62 billion.

Second-quarter net income rose to $57.9 million, or $2.19 a share, from $8.6 million, or 36 cents a share, a year ago.

Excluding items, the company earned $1.48 a share, compared with estimates of 87 cents a share, according to Thomson Reuters I/B/E/S.

Revenue more than doubled to $471.6 million, beating analysts’ estimate of $422.3 million.

In May, Clean Harbors had said second-quarter revenue was expected to better market estimates by 15 percent to 20 percent on the back of higher sales related to the oil spill. [ID:nSGE64H0H5] [ID:nN0960794]

Shares of the Norwell, Massachusetts-based company were up 2 percent at $64.42 Wednesday morning on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Vinu Pilakkott, Unnikrishnan Nair)

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