Clean Harbors, Inc. ("Clean Harbors") (CLH) - Get Report, the leading provider of environmental, energy and industrial services throughout North America, today announced that its Safety-Kleen subsidiary and all of its waste oil collections businesses are upwardly revising their pricing related to managing the collection of used engine and industrial oils. Effective immediately, Safety-Kleen is increasing the cost of its charge-for-oil (CFO) program across its used oil collection network, as well as increasing its service stop-fee for its stop-fee program. The CFO increases will range up to 70 cents per gallon depending on certain market factors and will apply to all gallons collected.
Craig Linington, EVP of Safety-Kleen Oil, said, "These rate changes are the necessary result of two major external conditions affecting our business. First, the new IMO 2020 regulation, which took full effect on March 1, requires more than 60,000 oceangoing vessels to transition from a 3.5% sulfur fuel oil to a 0.5% sulfur fuel oil. This regulation is severely limiting the outlets for used motor oil and waste fuels generated across North America and globally. The regulation is also materially depressing the value of many of our re-refined byproducts. Second, the coronavirus is creating major disruptions in the crude and base oil markets, driving significant price declines and unpredictable demand for both."
Oil Plus+ customers, who purchase Performance Plus re-refined finished lubricants as part of Safety-Kleen's closed loop offering, will be considered for exemption from this price change.
Linington concluded, "We believe these rate changes are needed for Safety-Kleen to be fairly compensated for our collection services and to enable us to continue to deliver the safe, reliable and quality service we provide to more than 200,000 customers throughout North America."
About Clean Harbors
Clean Harbors (CLH) - Get Report is North America's leading provider of environmental, energy and industrial services. The Company serves a diverse customer base, including a majority of Fortune 500 companies. Its customer base spans a number of industries, including chemical, energy and manufacturing, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America's largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates in the United States, Canada, Mexico, Puerto Rico and India. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "should," "estimates," "projects," "may," "likely," or similar expressions. Such statements may include, but are not limited to, statements about future CFO collection rates, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors' management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially including, without limitation, those items identified as "Risk Factors" in Clean Harbors' most recently filed Form 10-K and Form 10-Q. Forward-looking statements are neither historical facts nor assurances of future performance. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the "Investors" section of Clean Harbors' website at www.cleanharbors.com.
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