November 6, 2019
Volume 3 Issue 4
Safety-Kleen Revenue Up, HollyFrontier Results Mixed
Clean Harbors’ Safety-Kleen segment posted an uptick in revenue and waste oil collection, while HollyFrontier’s lubricants and specialty products segment posted mixed results for the quarter ending Sept. 30.
Norwell, Massachusetts-based Clean Harbors’ Safety-Kleen segment – which includes oil rerefining – reported $341.4 million in third party revenues for the third quarter, up just over 2 percent compared to the same period last year. Third-party revenues include the sales of base oil, blended products, reclaimed fuel oil and a small amount of other products.
“Within our Safety-Kleen segment, revenue increased 2 percent as growth in our core branch offerings and pricing initiatives offset slower-than-expected blended product sales in Safety-Kleen Oil,” Clean Harbors President and CEO Alan McKim said in the company’s earnings release.
The segment collected 63 million gallons of waste oil in the quarter, up from 60 million, according to McKim. “Waste oil collection remained strong … with a charge-for-oil rate that was slightly improved from last year’s third quarter,” he continued. “This helped to partly offset a lower year-over-year price in base oil. Given the current volatility in the marketplace with IMO 2020 on the horizon, we continue to target markets where we can gather more waste oil at the best price.”
McKim also said the company’s rerefineries should generate record base oil production this year. The company has five rerefineries in North America – four in the United States and one in Canada – with a combined 11,450 barrels per day of API Group II base oil production capacity.
HollyFrontier Corp.’s lubricants and specialty products segment posted $15.2 million in income from operations, down from $31.2 million in the same period in 2018, a 51.1 percent slump. Revenues from external customers reached $529.6 million, up 11.6 percent from $474.3 million in the year-earlier period.
The Dallas, Texas-based company acquired Parsippany, New Jersey-based Sonneborn for $665 million in November of last year.
The lubricants and specialty products segment includes Petro-Canada Lubricants and its Mississauga, Ontario, refinery, which makes products such as base oils, white oils, specialty products and finished lubricants, along with specialty lubricants from HollyFrontier’s Tulsa refineries. Acquisitions Red Giant Oil Co. and Sonneborn are now also part of the company’s lubricants and specialty products segment.