Which companies are benefiting from Gulf oil spill activity? – we offer some pointers!
Many consider that Clean Harbors Inc (CLH) and Nalco Holding Inc (NLC) could be big beneficiaries of the oil spill in the Gulf. We aren’t so sure and consider that Superior Energy Services (SPN) may actually offer some hidden attractions that aren’t currently factored into its valuation
One senses that the Clean Harbor share price will react inversely to BPs own success (or otherwise) in stemming the flow of oil. Seemingly little oil (thankfully) has reached the shoreline up to now and BP appears to be making progress in stemming the flow suggesting there could be reduced demand for Clean Harbor’s services. BP has been using Nalco’s chemicals to help clean the spill. It apparently breaks down the oil, thereby reducing its concentration and allowing it to disperse. Environmental experts have expressed concern at the potentially excessive use of dispersants. While Nalco maintain that the dispersants safely…