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HOUSTON & SYDNEY - Civeo Corporation (NYSE: CVEO) has recently secured a three-year contract to provide integrated services for a leading metallurgical coal producer in the Australian Bowen Basin. The contract, which starts in June 2025, involves catering, cleaning, and maintenance services at two villages.
The agreement is expected to generate around A$64 million in revenue across the contract’s duration from 2025 to 2028. According to InvestingPro data, Civeo maintains a healthy current ratio of 1.66 and operates with moderate debt levels, positioning it well for this contract execution. Civeo’s President and CEO, Bradley J. Dodson, expressed enthusiasm for the company’s first integrated services contract in Queensland, highlighting the decade-long relationship with the customer and the trust they have placed in Civeo’s services.
Civeo, known for its hospitality services in the natural resource regions of Australia and the Canadian oil sands, operates 28 lodges and villages with approximately 27,500 rooms and provides services at 24 customer-owned locations with more than 19,000 rooms.
This new contract was included in Civeo’s full-year 2025 revenue and Adjusted EBITDA guidance. The company anticipates that this deal will reaffirm its strong customer relationships and the high quality of its hospitality services, as well as provide contracted revenue visibility.
The information in this article is based on a press release statement from Civeo Corporation. InvestingPro analysis suggests the company is currently undervalued, with analysts forecasting profitability in 2025. Subscribers can access 8 additional ProTips and comprehensive financial metrics in the Pro Research Report, available exclusively on InvestingPro.
In other recent news, Civeo Corporation reported its financial results for the first quarter of 2025, which did not meet analysts’ expectations. The company announced a net loss with earnings per share (EPS) of -$0.72, missing the forecast of -$0.69. Additionally, revenue came in at $144 million, falling short of the anticipated $149.4 million. These results reflect challenges particularly in the Canadian segment, where revenue dropped by 40% year-over-year. Meanwhile, the Australian segment showed a 13% increase in revenues, aligning with Civeo’s strategic focus in that region.
Civeo has decided to suspend its dividends, opting instead for share repurchases, with the Board increasing share repurchase authorization to 20% of total shares outstanding. The company plans to allocate 100% of its annual free cash flow to these repurchases until the authorization is completed. Analysts at Stifel and Sidoti have shown interest in Civeo’s capital allocation strategy and its implications for future shareholder value. Civeo remains optimistic about its Australian operations and has provided a revenue guidance range of $620-$650 million for 2025, despite ongoing challenges in Canada.
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