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 inflicted on 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 $29.50 at market close on Wednesday.
“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 had already 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 capital expenditures in 2020 that could save up to $30 million and $6 million more in savings from the temporary freezing of cash dividends.
Among 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.
Perma-Fix Environmental Services has also endured a reduction in its stock value, though not as steep as US Ecology. The stock dropped from $7 on Feb. 1 to $5.86 at market close Wednesday.
