Wed Feb 22, 2012 10:07am EST
(Reuters) – Clean Harbors Inc’s (CLH.N) quarterly profit handily beat analysts’ estimates for the seventh straight time, and the waste management company raised its full-year revenue outlook as higher oil-drilling activity spurs demand for its exploration services.
The company’s shares were up as much as 9 percent to touch a life-time high of $71.63 on Wednesday morning on the New York Stock Exchange. The shares, which have gained about 40 percent of their value in the last one year, later pared some gains to trade up 6 percent at $69.68.
The Norwell, Massachusetts-based company sees increased demand for shale play-related work in both the United States and Canada.
“What we are particularly seeing is just a shift in our project from dry gas installations to more liquid-rich plays. We are not seeing the pool of investment shrinking, just redirecting,” Chief Executive Alan McKim said on a conference call with analysts.
Oilfield service companies have benefited from strong oil prices, which have prompted their energy-producing customers to hike spending by about 10 percent this year, according to a survey by Barclays Capital.
U.S. crude oil prices rose 17 percent to average about $92.39 per barrel in the October-December period.
Clean Harbors, whose exploration segment offers land and air surveying, geospatial data imaging and directional boring services, recently acquired Peak Energy Services and Destiny Resource Services.
The company expects full-year revenue of $2.20 billion to $2.25 billion, up from its prior estimate of $2.15 billion to $2.20 billion.
Analysts were expecting 2012 revenue of $2.19 billion, according to Thomson Reuters I/B/E/S.
For the fourth quarter, the company beat market expectations, earning 72 cents a share, compared with analysts’ estimates of 48 cents a share.
Revenue rose 31 percent to $546 million, higher than consensus estimates of $506.1 million.
(Reporting by Sunayan Bhattacharjee and Durba Ghosh in Bangalore; Editing by Sriraj Kalluvila)
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