US Ecology said Monday the value of its stock has been nearly halved by the “unprecedented time of uncertainty” generated by the COVID-19 pandemic.
The company’s filing with the Securities and Exchange Commission provided further illustration of the stress being placed on the radioactive waste management industry, within the larger chaos the crisis has created in the global economy.
The Boise, Idaho-based waste treatment and disposal provider said in the April 20 filing its stock price was down by 48% since early February. It stood at $31.14 as of Friday morning.
“The past few weeks are virtually without precedent for their impacts on peoples’ lives and health, the economy, and the financial markets. The Board’s goal remains to deliver the best value to stockholders,” according to the Schedule 14 proxy statement. “This year, the Board has particular priorities related to the pandemic: (i) to help ensure the physical health and safety of our team members; (ii) to be particularly responsive to our customers and supportive of their needs; (iii) to preserve liquidity and cash position to be able to address market needs as they rebound; and (iv) to be vigilant and careful stewards of our stockholders’ investments.”
Management has said US Ecology intends to prevent interruptions to its services. But it announced, on March 31, a series of cost-saving efforts to offset potential reductions in its waste disposal services. The steps include employing unidentified “cost control initiatives” to save $15 million to $20 million per year, along with a nearly one-third reduction in 2020 capital expenditures that could save up to $30 million and $6 million more in savings from the temporary freezing of cash dividends.
The company said it would offer more detail on its financial outlook during in a May 8 conference call with financial analysts to discuss first-quarter earnings.
Among its other businesses, US Ecology operates one of four licensed commercial facilities for disposal of low-level radioactive waste, at the Department of Energy’s Hanford Site in Washington state. Its competitors, Dallas-based Waste Control Specialists and Salt Lake City-based EnergySolutions, are privately owned. Without offering much detail, both have said the pandemic is impacting their business even as they maintain full operations
Atlanta-based radioactive waste-management specialist Perma-Fix Environmental Services has also endured a shallower reduction in its stock value. The stock has dropped form $7 on Feb. 1 to $5.92 on Friday. In March, executives said some field and waste treatment work was being delayed and that the crisis could hit its pocketbook in the second quarter.
During the pandemic, US Ecology has also emphasized its capabilities to provide decontamination and other services against COVID-19 infection.
On Thursday, the company said it has created a COVID-19-oriented cleaning and decontamination package for commercial and government customers. In a press release, US Ecolgoy said it has established a team of experts with experience with Ebola, SARS, H1N1 and the initial appearance of COVID-19. That team will assess a customer’s needs and prepare a decontamination plan.
Besides nuclear operations, US Ecology’s new program targets customers in the following sectors: manufacturing, automotive, insurance, retail, hospitality, transportation, healthcare, industry, oil and gas. The services include assistance in finding masks and other protective gear for customers. Services include ongoing or one-time decontaminations, preventive cleaning, and waste disposal.
