Covanta Holding Corp.
) has purchased Camden Resource Recovery Facility from an
Foster Wheeler AG
) for $48.6 million and expects the transaction to have a
positive effect on its 2013 outlook.
Located in the namesake New Jersey city, the Camden facility has
a processing capacity of 1,050 tons per day of Energy-from-Waste
(EfW). This is also known as waste to energy or WTE. Last year,
Camden processed around 319,000 tons of waste material into more
than 146,000 megawatt (MW) hours of electricity. Indeed Camden
holds a leading position in sustainable waste management and
This EfW facility provides waste management services to Camden
County and the local communities and produces about 21 MW of
renewable energy that is being sold into PJM at market rates.
Covanta is one of the world's largest owners and operators of
infrastructure for the conversion of WTE, as well as other waste
disposal and renewable energy production businesses. The company
conducts all of its operations through subsidiaries which are
engaged predominantly in the businesses of waste and energy
Covanta has 45 EfW facilities and this acquisition will enable
the Morristown, NJ-based company to extend its horizon apart from
its existing EfW facilities in the Northeast and Mid-Atlantic.
COVANTA HOLDING (CVA): Free Stock Analysis
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Last month, Covanta reported second quarter of 2013 earnings that
surpassed the Zacks Consensus Estimate by an impressive 150%. Its
top line also increased on the back of effective execution of
organic growth programs like special waste and metal recovery,
expansion of the Honolulu unit and contract additions.
Although Covanta made a favorable comeback in the second quarter
of 2013 with its top and bottom line beating our expectation, its
second quarter earnings fell short of the year-ago figure mainly
due to lower equity income. Again, the soft macroeconomic
conditions remain a concern.
Covanta currently carries a Zacks Rank #3 (Hold). Other companies
that are currently performing well and warrant a look include
Zacks Rank #1 (Strong Buy) stocks
US Ecology, Inc.
Huaneng Power International, Inc.