- Morristown, NJ-based Covanta Holding Corp. has reported its first quarter earnings, highlighting a $20 million increase in revenue from the same period in 2015, largely attributed to the waste and service sector. It also reported a record quarter for energy from waste (EfW) profiled waste revenue and the close of two acquisitions in the Environmental Solutions sector, according to Seeking Alpha.
- Operating expense was up $26 million from the first quarter of 2015, and income was down by $6 million—factoring out impairment charges. On the non-EfW side, operations revenue increased by $22 million on a consolidated basis from the first quarter of 2015.
- $0.25 per share cash dividends were paid out to the tune of $33 million total during the quarter.
Covanta has resolved to diversify through volatile market times, forging into both traditional solid waste management practices as well as the energy niche with its long menu of options. Each comes with its risks that turn to loss or gain tied to fluctuating factors like natural gas supply and weather.
This past quarter, lower market prices weighed in on the loss side of the ledger, taking a toll both on energy and recycled metals. But non-EfW operations carried the company through, mainly due to newly acquired environmental services businesses and the New York City MTS contract.
Biomass WTE continues to be hard to support as the corporation recently closed two biomass facilities. An overall $11 million drop in biomass revenue brought the energy sector down, with economically dispatching facilities and lower market pricing being blamed.
While the company works through challenges tied to lower energy and metals pricing, it sticks to its investment commitments, most recently in the North American non-EfW plant, newly acquired environmental services businesses, and the start-up of the Fairless Hills, PA metals processing facility. Another project that Covanta hopes will maintain its strong footing in environmental solutions is the Dublin EfW project, which is nearly 60% complete.