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Clean Harbors Announces Revisions to Used Oil Pricing Policies In Safety-Kleen Waste Oil Business
NORWELL, Mass.--(BUSINESS WIRE)--Aug. 31, 2015-- Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental, energy and industrial services throughout North America, today announced that its Safety-Kleen subsidiary is revising pricing related to managing used engine and industrial oils. Effective immediately, Safety-Kleen is expanding its charge-for-oil (CFO) program to full implementation across its used oil customer base, as well as increasing its service stop-fee program.
Jerry Correll, Safety-Kleen President, said, “The recent decline in crude oil pricing, along with associated decreases in fuel and base oil pricing, have materially affected the values of our recycled fuel oil (RFO) and re-refined products. Given the impact of these falling prices, we are now charging disposal rates in order to mitigate the market-derived pressure on our margins and avoid further deterioration in the existing spread. The announced rate adjustments reflect full implementation, effective immediately, of the CFO program in both the U.S. and Canada. In addition, we are significantly expanding our stop fee program to help recoup transportation and labor costs associated with oil collection services, with an emphasis on remote service locations.
“We continue to see margin pressure in our waste oil collection business due to the ongoing energy market deterioration,” Correll said. “As we did last December when we announced Zero-Pay, Safety-Kleen is continuing to address energy market drivers that affect those margins. We believe these rate changes and stop fees are needed for Safety-Kleen to be fairly compensated for the safe, reliable and quality service we provide to more than 200,000 customers throughout North America.”