BP Oil Spill: Clean-Up Stocks to Watch - TheStreet

NEW YORK (TheStreet) -- As BP (BP) - Get Report continues to face mounting cleanup costs from the Gulf of Mexico oil spill, other companies are benefiting from its pain.

Among them, of course, are the clean up companies themselves.

Norwell, MA-based

Clean Harbors

(CLH) - Get Report

is "one of the biggest companies to benefit from the oil spill," according to Toon van Beeck, an analyst at market research firm IBISWorld. Indeed, Clean Harbors is already estimating that the event will result in an increase in second-quarter revenues of about $53 million to $70 million.

Clean Harbors is involved in many aspects of the spill response, including containment, removal, disposal and recycling of the recovered oil. Its "stock price jumped a lot when the disaster happened," van Beeck said. "They also came out saying their industry has been stronger." Shares of Clean Harbors have jumped about 23% since April 20, when the oil crisis began.

Van Beeck says that BP has used Clean Harbors before, and the two companies have a good relationship.

The U.S. remediation and environmental cleanup services industry has experienced a great deal of growth over the last few years, given the enormity of natural disasters such as Hurricane Katrina. According to IBISWorld, it was a $10.3 billion industry in 2004, but then grew by about 12.4% in revenue in 2005, then by about 20% in 2006, in the aftermath of the Hurricane Katrina, to about a $13.8 billion.

In the five years to 2009, this industry had estimated revenue growth of 8.9% a year, reaching $15.69 billion in 2009, according IBISWorld. While updated revenue forecasts of the industry weren't immediately available, IBISWorld thinks the industry could see revenue growth in 2010 and 2011 similar to or even stronger than that in the period of the Hurricane Katrina aftermath.

Given that the oil spill hasn't been contained yet, clean-up companies could see revenue benefits "certainly in the next six months," according to Van Beeck. According to IBIS World's latest U.S. remediation and environmental cleanup services report, the

Shaw Group


has a 12% industry market share,

Tetra Tech

(TTEK) - Get Report

has a 10% market share,

CH2M Hill Companies

has a 5.3% market share and Clean Harbors has a 4% market share.

IBISWorld also noted that clean-up companies the Shaw Group and


( NLC) are also experiencing increased business demand due to the oil spill. Meanwhile, retailers and manufacturers of clean-up products have also been benefiting from the spill. They include

American Boom & Barrier

, which is seeing "massive demand," according to IBISWorld -- its workers are reportedly doing double shifts to supply the demand that's out there;

Granite Environmental

, "another company that's doing quite well;"

Containment Resource



-- Reported by Andrea Tse in New York


>>Parsing the Headlines

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