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HOUSTON & SYDNEY - Civeo Corporation (NYSE: CVEO), a provider of hospitality services, has announced the renewal of a significant contract with a major metallurgical coal producer. The four-year agreement, which extends from 2025 to 2029, is expected to yield approximately A$250 million in revenue. This renewal will continue Civeo’s provision of rooms and hospitality services at its Coppabella, Moranbah, and Nebo villages located in Australia’s Bowen Basin.
The company’s President and CEO, Bradley J. Dodson, expressed gratitude for the continued trust from their client and emphasized Civeo’s unique market position in offering large-scale room supply with consistent service across multiple mining locations.
This contract renewal aligns with the company’s previously stated revenue and Adjusted EBITDA guidance for the full year 2025. Civeo’s operations span across the Australian natural resource regions and the Canadian oil sands, where they operate 28 lodges and villages with an aggregate of approximately 27,500 rooms. Additionally, they provide hospitality services at 24 customer-owned locations with more than 19,000 rooms.
Despite the current softness in the metallurgical coal markets, the renewal of this contract underlines the resilience of Civeo’s business model through various commodity cycles. The company’s comprehensive solutions include lodging, food services, housekeeping, facility management, and other essential services for workers in remote locations.
This announcement is based on a press release statement from Civeo Corporation. The forward-looking statements in the release involve risks and uncertainties that could impact actual results, including fluctuations in commodity prices and demand for natural resources. Civeo has stated that it does not intend to update any forward-looking statements unless required by law.
In other recent news, Civeo Corporation reported its Q1 2025 financial results, revealing a net loss that exceeded analysts’ expectations. The company posted an earnings per share (EPS) of -$0.72, missing the forecasted -$0.69. Revenue also fell short at $144 million, compared to the anticipated $149.4 million. Despite challenges in its Canadian operations, where revenue dropped by 40% year-over-year, the Australian segment saw a 13% increase in revenues. Civeo has secured a three-year contract worth A$64 million to provide integrated services for a coal producer in the Australian Bowen Basin, starting in June 2025. This contract is expected to enhance the company’s revenue visibility and strengthen customer relationships. Additionally, Civeo has suspended dividends in favor of share repurchases, with a focus on returning capital to shareholders. The company has also provided a revenue guidance range of $620-$650 million for 2025, with an adjusted EBITDA forecast of $75-$85 million, reflecting optimism about its Australian operations.
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