Clean Harbors Safety-Kleen segment and Heritage-Crystal Cleans oil business segment each reported higher revenue for the fourth quarter and full year 2017, while lubricant supplier Quaker Chemical posted a net loss for the fourth quarter and a steep decrease in net income for the full year.
Clean Harbors Safety-Kleen segment – which includes oil rerefining – reported revenues of $302.8 million, up 4.8 percent from $289 million in 2016s fourth quarter. These third party revenues include sales of base oil, blended products and reclaimed fuel oil and a small amount of byproducts.
In its earnings presentation, the company said the segments revenue increased due to higher year-on-year pricing for base oil and blended products, supported by organic growth.
The segments third-party revenues for full year 2017 amounted to $1.2 billion, up 9 percent from $1.1 billion for 2016. The company said the improvement reflects factors such as the continued rebound in energy prices.
Chairman, President and CEO Alan McKim noted in the companys earnings news release that 2017 marked the rollout of Safety-Kleens closed loop offering, under which it sells finished lubricants to the same customers from whom it collects used oils.
In our first year since introducing the closed loop offering, we sold 5.3 million gallons of lube direct to customers, demonstrating to the market that this is a compelling offering, McKim said during an earnings conference call with analysts. And we continue to see a strong pipeline of opportunities and interest amongst our customers.
For 2018, he said, the company aims to at least double the volume of direct lubricant sales. He noted that in 2017s fourth quarter, Safety-Kleen launched sales blitzes in its bulk lubricant offering in three metropolitan markets, including Los Angeles. We have high expectations for the California marketplace, which has been very receptive to the recycled aspects of our offering, he noted.
Heritage-Crystal Clean posted $41.1 million in revenue for its oil business segment in the fourth quarter, up 6.8 percent from $38.5 million in the year-earlier period.
The company oil business segment reported an increase in revenue during fiscal 2017, rising to $127.9 million, 3.8 percent higher than $123.2 million in fiscal 2016.
The revenue increase was mainly driven by higher pricing for our base oil products, partially offset by lower used oil collection charges, the company stated in its earnings news release.
Heritage-Crystal Cleans oil business segment includes used oil collection activities, sales of recycled fuel oil and rerefining activities.
Quaker Chemical posted a $9.8 million net loss for the fourth quarter, compared to $17.4 million in net income in 2016s fourth quarter. The company said the net loss reflected $22.2 million in charges related to the U.S. Tax Cuts and Jobs Act and $7.7 million of expenses related to its previously announced acquisition of Houghton International.
For full year 2017, the Conshohocken, Pennsylvania-based lubricant suppliers net income reached $20.3 million, down almost 67 percent from $61.4 million.
The companys net sales rose to $211.1 million, up 10.4 percent from $191.2 million. Full-year 2017 net sales topped $820 million, up 9.8 percent from $746.7 million.
Quaker Chemical Chairman, CEO and President Michael Barry said the company expects to close its acquisition of Houghton International during the first half of 2018, and it is still awaiting regulatory approvals in the United States and Europe. Announced in April 2017, the deal that would combine two of the worlds largest suppliers of metalworking fluids. Houghton is currently owned by Indian conglomerate Hinduja Group through its lubricant business, Gulf Oil. The deal calls for Hinduja to take a nearly 25 percent stake in the combined company and to be given three seats on its board of directors.