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Clean Harbors CEO Alan McKim on why the oil and gas industry is an area of growth for the company.
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-- company with real bragging rights it's been double dip recession resistant by JPMorgan a stock.
Nice chart up 68%.
In just the last year and that's not even half of it.
We're talking about a company called clean harbors and Alan -- is the company's chairman CEO and president.
Joining me now in the Fox Business exclusive let's just get folks up to date on this your house to house hazardous material and the environmental clean up and Waste Management company but.
What is it that you do that is better that is so reflected in your stock price right now.
I think we're focus in the oil and gas industry right now and that's a big growth part of our business both in western Canada there and throughout.
Many of the oil and gas shale plays here in the US and I think we see enormous opportunity to grow a business.
What it what do you do for them I mean I know that when you you're drilling and you're dealing with the shale up in Canada.
There are rivers or streams if you will of waste that come through what you were just basically on a daily basis getting in there and cleaning up.
Absolutely everything that we do is about cleaning.
Maintaining disposing of the ways whether -- surrounded drilling rig or around a mine up in the oil -- story refinery.
Anything to do with the oil and gas.
Alan three years ago you would virtually no exposure to the energy sector did you wake up one day and say and that was free BP spill.
In which she played a very major part in -- but at what what was it the -- due to say there's a real opportunity there.
Well we've been in Canada for about nine years since seeing a huge growth opportunity in the -- side of the business.
And as we started getting more more involved with the customers that -- generated -- this ways we saw a lot of cross selling opportunities with our industrial service business.
And so we acquired a number of firms up there to help.
Build a solid foundation for our growth.
We're now close to two billion dollars about a half of our revenues now -- oil and gas and we think we can grow that the three billion and beyond last year when the BP spill was finally.
Dealt with did it end up being bigger for your bottom line that you had expected it certainly did there was -- -- especially for them.
Well basically we provided upwards -- 3500 people at a given time a lot of boats skimming equipment.
Containment and really whatever our customer down they needed we provided for them and I how much money dividend -- that and your bottom line I think between both events that we did in Michigan in the gulf was -- 260 million dollars of top line revenue for us it was pretty profitable work -- its emergency based.
OK but don't let it profitable yes but I this is just a personal question I'm interested in was it almost like a lab for you where you learn new techniques on cleaning up mass of spills like -- You know that's a lot of training that goes on for the past 1015 years -- oil industry has really provide a lot of capital and -- cleanup equipment a lot of training has taken place so quite frankly it was relatively.
Routine although just a massive scale but a lot of technology's been available prolonged time.
Right now you're involved in the cleanup of the Yellowstone river where ExxonMobil had a spill as last numbers that I -- you would have about what fifteen million dollars added to your revenues from that is that correct that's correct okay it is Afghanistan or two point end up being more -- -- -- -- this is thicker than what people initially thought the source cleanup effort.
Yeah I think this goes really -- going to be winding down here by the end of this month and there'll be larger than that certainly in the end but I think twenty million.
I think the -- to be in the mid thirty plus in and when we're finally said and done here.
But I think clean harbors gets called throughout the US and candor for these kind of events so.
Where there when they happen they don't happen a lot but certainly it's it is a piece of our business that that we enjoy.
Our nation is struggling right now we've had a very soft patch -- contracting yet but it's definitely a slowdown.
As you're growing in your developing new ideas who are you hiring it engineers is it basically you know people are you hiring.
We're hiring we have a lot of openings today it's a real focus of ours who have over 600 job openings right now and we're looking for people which re engineer its.
Predominantly in the oil patch but certainly in western candor as well.
We're -- -- a lot of US opportunity for us as well could were opening up new offices and expanding our business in the US so.
We're investing -- 160 million dollars in capital this year hiring people we see that opportunity to continue next -- while.
Of Waste Management as a competitor although they don't I'm not quite sure they do exactly what you do I don't think they do but.
Looking at.
Data day management of waste in this nation it's not getting any smaller it's only getting -- who's going to emerge as the real winner what do you have to do to be that company.
I think clean harbors is the leader today we have the majority of the hazardous waste assets whether -- landfills -- incinerators treatment plants.
We're investing more into those assets.
To really be prepared for that growth which management certainly focuses on the solid -- side but we are that the leader of by far in the house in -- Switzerland.
We didn't manage to pull off the better days -- for the state -- -- acquisition are you looking for new properties to acquire we are we we had a good deal -- -- and unfortunately shareholders didn't vote for it and -- -- -- frustrating well we had a fair price that we weren't going up our offer any further and that it was time for us to move on and there are a lot of opportunities for the company to grow.
Both organically as well as through acquisition we come back.
Absolutely great story to follow thank you so much for have an -- Alan can clean harbors CEO and president cleaning up and keeping our nation clean in Canada too good to.
