Civeo shares plunge as Q4 results miss estimates, guidance disappoints

Published 27/02/2025, 17:32
Civeo shares plunge as Q4 results miss estimates, guidance disappoints

HOUSTON & CALGARY - Civeo Corporation (NYSE:CVEO) saw its shares tumble 14.4% after the accommodation services provider reported fourth-quarter results that fell short of analyst expectations and issued disappointing full-year 2025 guidance.

The company posted a Q4 loss of $1.10 per share, significantly wider than the $0.44 loss per share analysts had forecast. Revenue came in at $151 million, below the consensus estimate of $155.37 million and down 11.6% from $170.8 million in the same quarter last year.

For the full year 2025, Civeo projects revenue between $630 million and $660 million, well below analysts’ expectations of $719.5 million. The company cited recent reductions in currency exchange rates as a factor in its outlook.

"Our Canadian business continued to face headwinds in the oil sands region, compounded by economic and political uncertainty," said Bradley J. Dodson, Civeo’s President and CEO. He noted that customer headcount requirements and occupancy in the Alberta oil sands region have declined.

To address these challenges, Civeo plans to restructure its Canadian operations in Q1 2025, incurring one-time costs of approximately $3 million as it cold-closes existing lodges and reduces overhead headcount by about 25%.

On a positive note, Civeo’s Australian segment saw revenues grow 23% YoY to $110 million in Q4, driven by increased integrated services activity. The company also recently announced an agreement to acquire four villages in Australia’s Bowen Basin, which it expects to be immediately accretive to cash flow upon closing.

For the full year 2024, Civeo reported revenues of $682.1 million and a net loss of $17.1 million, or $1.19 per share. Adjusted EBITDA was $79.9 million, down from $106.5 million in 2023.

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