Heritage Crystal Cleans oil business segment – which includes used oil collection activities, sales of recycled fuel oil and re-refining activities – posted $31.3 million in revenue for the quarter ending June 17, up 11.3 percent from $28.1 million in the year-earlier period.
The Elgin, Illinois-based rerefiner cited higher pricing for base oil products, offset by lower used oil collection charges, as the driving force behind the revenue increase. HCCs operating margin for its oil business segment jumped to 9.9 percent, a significant increase from last years 1.6 percent, which was attributed primarily due to higher spreads on the companys base oil products.
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We are pleased that improved base oil pricing has allowed us to achieve nearly double-digit operating margin in this segment for the first time since we began operating the rerefinery, said Brian Recatto, HCCs president and chief executive officer, in the earnings report.