Cleanaway’s growth spurt following failed takeover

The Cleanaway waste treatment group has experienced strong growth following its partially failed takeover of the Australian operations of the Suez company for $2.5 billion.

Although the takeover did not occur, Cleanaway emerged with ownership of Suez’s Sydney Resource Network assets, which were integrated into the business, helping to boost net income by 18.4% to 2 $.6 billion over the past year.

An economic recovery, new customer contracts, pandemic-related clinical waste and increased commodity revenues also drove sales in FY22 as well as acquisitions.

Underlying EBITDA of $581.6 million was 8.7% higher than the prior corresponding period, partly offset by lower volumes from the company’s New Chum landfill in Sydney which was flooded during the year.

Net operating cash increased by $41.9 million to $466.3 million.

Cleanaway also announced plans to raise $400 million in capital – $350 million in an equity offering and $50 million in a stock purchase plan – to fund the execution of its BluePrint 2030 to to develop the business.

This includes the $168.5 million acquisition of the Sydney Global Renewables Holdings composting facility which processes household waste organics – the waste is already delivered to GRH by Cleanaway, making it the logical owner of the company.

Cleanaway intends to spend up to $45 million to upgrade HRM’s facility at Eastern Creek, Sydney (pictured).

Cleanaway CEO Mark Schubert said that during the year the company had updated its strategy to respond to emerging opportunities from a transition to a high-circular, low-carbon economy.

“In a year of significant challenges posed by a global pandemic, natural disasters, supply chain disruptions and emerging inflation, Cleanaway delivered strong financial performance.

“…Lockdowns have impacted revenue and efficiency of operations, and widespread community infections have reduced workforce availability and increased pandemic leave costs.”

Photo: Global Renewables Holdings/Eastern Creek

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Melvin B. Baillie