Safety-Kleen’s Q2 profit falls

Safety-Kleen Sustainability Solutions (SKSS), the US’ largest base oils re-refiner, saw profit fall in the second quarter amid weaker-than-expected demand and lower base oils prices.

Profit before interest, taxes, depreciation and amortization (EBITDA) came to $53.4mn in the three months to end-June, down 45pc from year-earlier levels.

The quarterly contraction was the third in a row.

SKSS is a unit of Clean Harbors.

Profit slid at a faster pace than the 15pc fall in sales during the quarter.

Revenue fell despite a record-high sales volume for the second quarter.

Profit and sales dipped in the face of several posted-price cuts by refiners during the second quarter of the year.

SKSS cushioned the price pressure by shifting to a charge-for-oil pricing model for its used oil collection in place of a pay-for-oil model.

It collected a record-high 64mn US gallons (215,000t) during the quarter.

The unit’s profit margin of 23.7pc in the second quarter fell from more than 36pc during the same period a year earlier.

It rose from 17.5pc during the first three months of the year.

Clean Harbors expects base oils and lubricants pricing to remain under pressure in second-half 2023.