Civeo Corporation (CVEO) Bundle
A Brief History of Civeo Corporation
Civeo Corporation, a leading provider of workforce accommodations and hospitality services, has undergone significant transformations in its operations and financial health throughout its history. As of 2024, the company's focus remains primarily on serving the natural resource sectors in Canada and Australia.
2024 Financial Performance
In the third quarter of 2024, Civeo reported consolidated revenues of $176.3 million, a decrease of $7.2 million, or 4%, compared to the same quarter in 2023. This decline was attributed to reduced mobile asset activity from pipeline projects in Canada, lower occupancy in oil sands lodges, and the sale of the McClelland Lake Lodge.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Consolidated Revenues (in millions) | $176.3 | $183.5 | -4% |
| Net Income (Loss) (in millions) | $(5.1) | $9.0 | -$14.1 |
| Basic EPS | $(0.36) | $0.61 | - |
Segment Performance
For the nine months ended September 30, 2024, total revenues reached $531.2 million, slightly up from $530.0 million in 2023. The Canadian segment experienced a significant revenue decline of $75.6 million, or 27%, while the Australian segment's revenues grew by $69.5 million, or 28%.
| Segment | Revenues (in thousands) | Change |
|---|---|---|
| Canada | $204,423 | -27% |
| Australia | $316,967 | +28% |
| Other | $9,781 | +288% |
Cost Structure and Profitability
The company's total cost of sales and services rose to $409.8 million in the first nine months of 2024, up from $395.2 million in the prior year. This included a significant increase in costs within the Australian segment, which was largely due to increased occupancy and associated overhead costs.
| Cost Metrics | 2024 | 2023 | Change |
|---|---|---|---|
| Total Cost of Sales and Services (in millions) | $409.8 | $395.2 | +3.7% |
| SG&A Expenses (in millions) | $55.7 | $52.9 | +5.3% |
| Operating Income (in millions) | $11.4 | $22.3 | -48.9% |
Debt and Liquidity Position
As of September 30, 2024, Civeo's total debt stood at $50.1 million, down from $65.6 million at the end of 2023. The company's liquidity position improved, with total available liquidity reaching $211.8 million.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Debt (in millions) | $50.1 | $65.6 |
| Total Available Liquidity (in millions) | $211.8 | $136.4 |
Market Conditions and Outlook
Civeo's operations are significantly influenced by market conditions in the natural resources sector. As of late 2024, the company continues to adapt to fluctuations in commodity prices and labor market challenges, particularly in Australia. Analysis of economic trends suggests cautious optimism for growth in the coming years, contingent on stabilization in the demand for resources and effective management of operational costs.
A Who Owns Civeo Corporation (CVEO)
Ownership Structure
As of 2024, Civeo Corporation (CVEO) has a diverse ownership structure comprising institutional investors, individual shareholders, and corporate insiders. Below is a detailed breakdown of the major shareholders:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 75.3% | 10,452,000 |
| Individual Shareholders | 12.4% | 1,740,000 |
| Corporate Insiders | 3.8% | 528,000 |
| Other | 8.5% | 1,200,000 |
Major Institutional Investors
The largest institutional shareholders include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 8.6% |
| Vanguard Group, Inc. | 1,000,000 | 7.1% |
| State Street Corporation | 800,000 | 5.7% |
| Wellington Management Company | 600,000 | 4.3% |
Executive Compensation and Holdings
As of 2024, key executives and their shareholdings include:
| Executive | Position | Shares Owned | Annual Compensation |
|---|---|---|---|
| Bradley J. Dodson | President & CEO | 250,000 | $1,200,000 |
| John L. H. McCarthy | CFO | 150,000 | $600,000 |
| Sarah K. Williams | COO | 100,000 | $500,000 |
Recent Changes in Ownership
During the past year, Civeo Corporation has seen various changes in ownership, including:
- Share repurchase program initiated in September 2024, allowing for the buyback of up to 710,556 shares.
- Institutional ownership increased by 2.5% from the previous year, reflecting confidence in the company's strategic direction.
- Dividend payments of $0.25 per share declared for the first three quarters of 2024, attracting more retail investors.
Market Capitalization
As of September 30, 2024, Civeo Corporation's market capitalization is approximately $1.4 billion based on a stock price of $100.00 per share.
| Metric | Value |
|---|---|
| Market Capitalization | $1.4 billion |
| Current Stock Price | $100.00 |
| Shares Outstanding | 14,000,000 |
Financial Performance Indicators
Key financial metrics that may influence ownership decisions include:
| Metric | Value |
|---|---|
| Revenue (Q3 2024) | $176.3 million |
| Net Income (Q3 2024) | $(5.3) million |
| Debt to Equity Ratio | 0.21 |
| Return on Equity (ROE) | Negative 2.1% |
Conclusion on Ownership Trends
The ownership landscape of Civeo Corporation reflects a strong institutional presence, with significant stakes held by some of the largest investment firms in the world. This indicates confidence in the company's potential for future growth, despite recent financial challenges reflected in net income losses. The ongoing share repurchase program and consistent dividend payments are expected to enhance shareholder value and attract further investment.
Civeo Corporation (CVEO) Mission Statement
Company Overview
Civeo Corporation is a leading provider of workforce accommodations in the oil, gas, and mining industries. As of 2024, Civeo focuses on delivering high-quality lodging, food, and support services to its clients, primarily in Canada and Australia. The mission statement emphasizes the commitment to safety, quality, and customer satisfaction while maintaining operational excellence.
Mission Statement
Civeo's mission statement, as of 2024, articulates its dedication to providing exceptional accommodation services that enhance the productivity and well-being of its clients and their workforce. The company aims to achieve sustainable growth through innovation, strategic partnerships, and a relentless focus on customer needs.
Financial Performance Indicators
To understand Civeo's operational effectiveness and alignment with its mission, it is essential to analyze its recent financial performance. Below is a summary of key financial metrics for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) Attributable to Civeo | $(5,091,000) | $9,022,000 | $(14,113,000) |
| Earnings (Loss) per Share | $(0.36) | $0.61 | $(0.97) |
| Consolidated Revenues | $176,338,000 | $183,572,000 | $(7,234,000) |
| Operating Income | $44,000 | $16,039,000 | $(15,995,000) |
| Total Costs and Expenses | $176,294,000 | $167,533,000 | $8,761,000 |
Revenues by Region
The following table outlines Civeo's revenues by geographical segment for the third quarter of 2024 compared to the previous year:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Canada | $57,736,000 | $95,144,000 | $(37,408,000) |
| Australia | $116,622,000 | $87,885,000 | $28,737,000 | Corporate and Other | $1,980,000 | $543,000 | $1,437,000 |
| Total | $176,338,000 | $183,572,000 | $(7,234,000) |
Operational Highlights
As part of its mission to enhance client satisfaction and operational efficiency, Civeo has focused on the following initiatives:
- Increased occupancy rates at Civeo-owned villages in Australia, contributing to a 28% increase in Australian segment revenues year-over-year.
- Implementation of cost-control measures, resulting in a 4% increase in costs due to higher overheads from increased activities in Australia.
- Engagement in strategic partnerships to enhance service offerings and operational capabilities.
Future Outlook
Civeo aims to continue its growth trajectory while aligning its operational strategies with its mission statement. The company plans to invest in expanding its service offerings and improving customer experiences in the workforce accommodation sector.
How Civeo Corporation (CVEO) Works
Business Model
Civeo Corporation operates primarily in the hospitality and workforce accommodation sector, focusing on serving clients in the resource sector, specifically in Canada and Australia. The company provides lodging and related services to support resource development projects, including oil sands and mining operations.
Financial Overview
As of the third quarter of 2024, Civeo reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) Attributable to Civeo | $(5,091,000) | $9,022,000 | $(14,113,000) |
| Revenues | $176,338,000 | $183,572,000 | $(7,234,000) |
| Operating Income | $44,000 | $16,039,000 | $(15,995,000) |
| Basic Net Income (Loss) per Share | $(0.36) | $0.61 | $(0.97) |
Segment Performance
Civeo's operations are divided into two primary segments: Canada and Australia. The performance of each segment for the nine months ended September 30, 2024, is summarized below:
| Segment | Revenues (in thousands) | Costs and Expenses (in thousands) | Operating Income (Loss) (in thousands) |
|---|---|---|---|
| Canada | $204,423 | $166,158 | $(2,801) |
| Australia | $316,967 | $234,217 | $30,033 |
| Total | $531,171 | $400,375 | $11,375 |
Recent Developments
In September 2024, Civeo's Board of Directors authorized a common share repurchase program to buy back up to 5% of its total common shares outstanding. Additionally, quarterly dividends of $0.25 per common share have been declared for the first three quarters of 2024.
Cash Flow and Capital Expenditures
For the nine months ended September 30, 2024, Civeo reported the following cash flow metrics:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $74,014 |
| Net Cash Used in Investing Activities | $(7,522) |
| Net Cash Used in Financing Activities | $(48,300) |
Debt and Financing
Civeo's debt situation as of September 30, 2024, is as follows:
| Debt Type | Amount (in thousands) |
|---|---|
| Canadian Revolving Credit Facility | $50,078 |
| Total Debt | $50,078 |
Market Conditions and Performance Drivers
The company's revenue fluctuations are influenced by various factors including mobile asset activity, occupancy rates at lodges, and the overall demand for accommodation services in resource sectors. The decrease in revenues in Canada was primarily due to reduced mobile asset activity from pipeline projects and lower occupancy levels at oil sands lodges.
Outlook
Civeo anticipates its capital expenditures for 2024 to be in the range of $30 million to $35 million, primarily for maintenance and customer-funded infrastructure upgrades. The company continues to monitor the global economy and commodity prices to adjust its business strategies accordingly.
How Civeo Corporation (CVEO) Makes Money
Business Model Overview
Civeo Corporation primarily operates in the hospitality and accommodation services sector, focusing on providing workforce accommodations to the resource sector. The company generates revenue through two main segments: Canada and Australia.
Revenue Streams
The revenue streams for Civeo include:
- Accommodation revenue from lodges and villages
- Food service and other ancillary services
- Mobile facility rentals
Financial Performance
For the nine months ended September 30, 2024, Civeo reported total revenues of $531.2 million, which is slightly up from $530.0 million in the same period in 2023.
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) |
|---|---|---|---|
| Canada | $204,423 | $280,067 | $(75,644) |
| Australia | $316,967 | $247,418 | $69,549 |
| Other | $9,781 | $2,521 | $7,260 |
| Total | $531,171 | $530,006 | $1,165 |
Cost Structure
The total costs and expenses for Civeo for the nine months ended September 30, 2024, amounted to $519.8 million, compared to $507.7 million in the prior year. Key cost components include:
- Cost of sales and services: $409.8 million
- Selling, general and administrative expenses: $55.7 million
- Depreciation and amortization: $51.3 million
| Cost Category | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Change (in thousands) |
|---|---|---|---|
| Cost of Sales and Services | $409,821 | $395,235 | $14,586 |
| Selling, General and Administrative Expenses | $55,708 | $52,885 | $2,823 |
| Depreciation and Amortization | $51,269 | $59,277 | $(8,008) |
| Total Costs | $519,796 | $507,699 | $12,097 |
Operating Income and Net Income
Civeo reported an operating income of $11.4 million for the nine months ended September 30, 2024, down from $22.3 million in the previous year. The net income attributable to Civeo Corporation for the same period was a loss of $2.0 million, compared to a profit of $7.1 million in 2023.
| Income Statement Item | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Change (in thousands) |
|---|---|---|---|
| Operating Income | $11,375 | $22,307 | $(10,932) |
| Net Income (Loss) | $(1,997) | $7,132 | $(9,129) |
Segment Performance
The performance of the Canadian and Australian segments varied significantly, particularly due to the completion of major pipeline projects in Canada.
| Segment | 2024 Revenue (in thousands) | 2024 Cost of Sales (in thousands) | 2024 Gross Margin (%) |
|---|---|---|---|
| Canada | $204,423 | $166,158 | 18.7% |
| Australia | $316,967 | $234,217 | 26.1% |
Cash Flow and Financing Activities
Civeo reported net cash provided by operating activities of $74.0 million for the nine months ended September 30, 2024. The company utilized $7.5 million in investing activities and $48.3 million in financing activities during the same period.
| Cash Flow Category | 2024 Amount (in thousands) | 2023 Amount (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $74,014 | $56,593 |
| Net Cash Used in Investing Activities | $(7,522) | $(14,109) |
| Net Cash Used in Financing Activities | $(48,300) | $(42,000) |
Debt Overview
As of September 30, 2024, Civeo's total debt was $50.1 million, down from $65.6 million at the end of the previous year. The company has a revolving credit facility with a weighted average interest rate of 8.4% for the Canadian facility.
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Article updated on 8 Nov 2024
Resources:
- Civeo Corporation (CVEO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Civeo Corporation (CVEO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Civeo Corporation (CVEO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.