US Ecology collected over $13 million in insurance recoveries in the first nine months of the year due to the fatal November 2018 explosion at its Grand View, Idaho, waste treatment and disposal facility.
That included $9.7 million in property insurance recoveries and $4.1 million in business interruption insurance, the Boise-based environmental services company said Wednesday in a press release preceding this morning’s quarterly earnings conference call with analysts. The news release also said US Ecology does not expect to receive additional business interruption insurance payments until early 2020.
The Grand View site, in southwest Idaho, is one of 30 environmental services facilities US Ecology operates in the United States, Canada, and Mexico. It provides disposal and treatment of hazardous and nonhazardous wastes, including very low-activity radioactive waste, naturally occurring radioactive material (NORM), and technologically enhanced naturally occurring radioactive material (TENORM).
The Nov. 17, 2018, explosion killed one employee and injured eight others. US Ecology faces a potential $66,300 fine from the U.S. Occupational Safety and Health Administration for five “serious” safety-related violations. US Ecology is contesting the fines.
OSHA concluded hydrogen and oxygen were generated during a process to convert magnetism into a more stable magnesium oxide — and the hydrogen ignited to create the explosion. However, US Ecology disagrees, concluding the explosion was caused by a reaction among water, magnesium, and a mixture of other chemicals that were not supposed to be in the wastes shipped by a customer.
The Idaho Department of Environmental Quality is still investigating the explosion’s cause, which includes reviewing the other investigations. An official with the state agency said last week it is not ready yet to public discuss the explosion’s cause.
After market close on Wednesday, US Ecology reported revenue of $167.4 million and net income of $13.1 million, or $0.59 per diluted share, for the third quarter of 2019, which ended Sept 30. For the same period of 2018, the company brought in revenue of $151.4 million and net income of $13.4 million, or $0.61 per diluted share.
For the first nine months of 2019, company net income was $36.6 million, or $1.65 per diluted share, compared to $35.9 million, or $1.63 per diluted share, in the first nine months of 2018.
Following approval by both companies’ shareholders last week, US Ecology’s acquisition of energy industry remediation and response provider NRC Group Holdings is scheduled to close on Friday.
