Environmental services provider US Ecology this week reported higher revenue in 2017 but mixed numbers on income.
Company-wide revenue rose 6 percent for the year, to $504 million, from $477.7 million in 2016. Revenue for its Environmental Services branch, which includes a low-level radioactive waste disposal facility in Washington state, was up by nearly $30 million, to $366.3 million in 2017 from $337.8 million in 2016.
The company’s full-year operating income landed at $59.8 million, a 15 percent cut from $70 million the year before. That was largely connected to an impairment charge connected to its airport services business line, which includes collection and reprocessing of aircraft deicing fluid. “Excluding the non-cash goodwill and indefinite-lived intangible asset impairment charge of $8.9 million taken in the fourth quarter of 2017 associated with our airport recovery business, operating income declined 2% over 2016,” according to a US Ecology press release.
Conversely, US Ecology’s net income grew from $34.3 million, $1.57 per diluted share, in 2016 to $49.4 million, $2.25 per diluted share, last year. Adjusted earnings per share were also higher: $1.72 per diluted share in 2017 versus $1.53 per diluted share the year before.
“The strong momentum we experienced in the fourth quarter is expected to continue into 2018, supported by the positive macro trends seen throughout the U.S. economy since late 2016 and the improving outlook for many of our customers,” Chairman and CEO Jeff Feeler said in a prepared statement. “As a result, we expect to see our Environmental Services Base Business grow 3-5% for 2018. Our strong Environmental Services Event Business pipeline continues to support our belief that we will be able to replace completed 2017 projects and show continued growth in 2018. We also expect to report gains in our Field and Industrial Services segment in 2018 as we execute on contract wins from 2017.”
The company anticipates $530 million to $553 million in revenue for 2018, with Environmental Services providing $385 million to $393 million of that. Earnings per diluted share are forecast at $2.15 to $2.34.
Sen. Kamala Harris (D-Calif.) last week introduced legislation that would block retired nuclear power plants from receiving exemptions to certain federal regulations until all of the site’s used nuclear fuel is in dry storage.
If the Safe and Secure Decommissioning Act of 2018 passes, the U.S. Nuclear Regulatory Commission would be barred from providing waivers or exemptions to 1954 Atomic Energy Act regulations on safety and emergency preparedness while a nuclear power plant still has spent fuel in the reactor or cooling pool.
“As nuclear power reactors like San Onofre undergo the decommissioning process, we must ensure that every necessary measure is taken to protect the surrounding communities and environment,” Harris said in a press release. “This bill ensures that decommissioning nuclear power cites process adhere to commonsense safety precautions that have been on the books for decades.”
Spent reactor fuel that has been cooled for at least one year can be moved into dry casks for long-term storage at nuclear power plants. Dry storage in hardened storage systems is widely accepted to be safer and more secure than keeping the radioactive material in wet storage.
The NRC generally is authorized to provide license amendments or regulatory exemptions in emergency preparedness and other areas for nuclear sites in decommissioning, which pose a reduced danger than operational plants. The agency is currently conducting a rulemaking intended to reduce the need for exemptions in sites transitioning from operations to decommissioning.
Harris’ bill was referred to the Senate Environment and Public Works Committee. It has three co-sponsors: Sens. Edward Markey (D-Mass.), Kirsten Gillibrand (D-N.Y.), and Bernie Sanders (I-Vt.).
Harris, Markey, and Gillibrand also co-sponsored legislation submitted by Sanders last week that would give state and local governments greater say in NRC reviews of nuclear power plant decommissioning plans.
NorthStar Medical Radioisotopes, of Beloit, Wis., has received approval from the U.S. Food and Drug Administration for its RadioGenix System for production of the medical isotope technetium-99m.
A decay product of the isotope molybdenum-99, technetium-99m is used for medical imaging for cancer, coronary artery disease, and health threats to the lungs, liver, kidneys, and brain. The United States has not had a domestic production source of molybdenum-99 for over a quarter-century, but several companies are racing to re-establish that capacity.
“Every day, tens of thousands of people in the U.S. undergo a nuclear medical imaging procedure that depends on Tc-99m,” Janet Woodcock, director of the FDA’s Center for Drug Evaluation and Research, said in a Feb. 8 press release. “This radioisotope is vital to disease detection, yet health care professionals have faced challenges with adequate supply due to a complex supply chain that sometimes resulted in shortages. Today’s approval has been the result of years of coordination across the FDA and with U.S. government organizations and marks the first domestic supply of Mo-99 – the source of Tc-99m – in 30 years, which will help to ensure more reliable, clean and secure access to this important imaging agent used in nuclear medicine.”
The Department of Energy’s National Nuclear Security Administration provided some of the funding for development of the system, which uses stable isotopes instead of potentially weapon-usable enriched uranium.
In its own press release, NorthStar called its technology “a technetium Tc 99m generator used to produce sterile, non-pyrogenic Sodium Pertechnate Tc 99m Injection.” It said customers should receive the product in a matter of weeks after FDA approval.
The U.S. Nuclear Regulatory Commission, which oversees domestic use of radioactive substances in medicine, will submit guidance and the license allowing the technetium-99m from NorthStar’s system to be applied for medical purposes, the FDA said.
Separately, Janesville, Wis.-based SHINE Medical Technologies on Tuesday announced that it had completed construction of Building One of its own molybdenum-99 production facility. The 11,400-square-foot building is scheduled to begin operations this summer, after SHINE receives its accelerator first production unit and a state license to operate the system.
The facility will be used to train personnel in use of the company’s isotope production system while the primary manufacturing structure is built, and will subsequently serve as technology development center, SHINE said in a press release.
SHINE plans to start building its primary production plant this summer and to begin isotope output by 2020. The company expects each week to produce 4,000 6-day Curies, more than a third of worldwide demand, spokeswoman Katrina Pitas said by email.
The cost of the facility is not being made public, Pitas said.
Nuclear power services provider NuVision Engineering has promoted three of its managers into top leadership positions, including chief executive officer and chief operating officer.
The moves follow NuVision’s acquisition by Carr’s Engineering last August, according to the company’s Feb. 9 announcement.
As of Feb. 1, Brian Scott Beley is president and CEO at the Pittsburgh company. He has been with the company since 2002, most recently as the vice president in charge of NuVision’s utilities and industry business branch. He replaces Van Walker, who retired last week but is staying on part time to chair the company’s board.
Martin Williams has been promoted to the new position of chief operating officer from vice president for decommissioning and waste management. He joined NuVision in 1998.
After 23 years in a number of accounting and finance roles with NuVision, Lisa Donavan has been named company controller.
NuVision provides technologies and services for the nuclear sector, including waste treatment, decontamination, and robotics. It has 30 to 35 employees, plus another 30 employees at subsidiary Mid Columbia Engineering, of Richland, Wash.
The executive director of the Texas Commission on Environmental Quality will retire in April after more than four years on the job.
The state agency did not say this week whether Richard Hyde would be replaced on an interim basis. The “commissioners have not yet begun the process to replace Mr. Hyde nor is there a timeframe in place,” TCEQ spokeswoman Andrea Morrow said by email.
The commission is the state regulator for the Waste Control Specialists site in Andrews County, one of four facilities licensed by the U.S. Nuclear Regulatory Commission for disposal of low-level radioactive waste.
Hyde became TCEQ chief in January 2014 after rising through the ranks at the agency, including as director of its Air Permits Division, deputy director of two offices, and deputy executive director. In total, he spent 25 years in state government.
“It has been a privilege to work for the people of this great state, but now it’s time for myself and my family to begin the next chapter in our lives,” Hyde said in a press release. “I’m thankful to have worked with so many dedicated employees at the TCEQ. TCEQ’s employees work hard every day to protect the environment using good science and common sense.”
Hyde will give up his leadership in March, but will stay on at the agency through April during the transition to a new executive director. The press statement said only that TCEQ “Commissioners will work expeditiously to identify a quality successor.” The salary for the position is set by state statute at $211,415.
Last fall, TCEQ began a rulemaking to reduce some radioactive waste disposal charges at Waste Control Specialists. The process, aimed at increasing business for the struggling company, is scheduled to last through much of 2018. Since the rulemaking began, holding company Valhi Inc. has sold Waste Control Specialists to private equity firm J.F. Lehman.
At its Feb. 21 meeting, the commission is scheduled to review Waste Control Specialists’ financial assurance mechanisms.
