Civeo Corp Cda Stock Price, News & Analysis

Civeo (NYSE: CVEO) has announced a new share repurchase program authorizing the buyback of up to 10% of its total common shares over the next twelve months. This follows the completion of their previous 5% share repurchase authorization announced on September 11, 2024.

Since initiating its share repurchase program in 2021, Civeo has repurchased approximately 20% of its fully-diluted shares outstanding. The company maintains flexibility in executing the buyback through various methods, including open market purchases and private transactions. The timing, price, and quantity of repurchases will be discretionary, considering factors such as capital position, liquidity, financial performance, and market conditions.

Civeo (NYSE:CVEO) has acknowledged receiving a shareholder letter from Engine Capital LP. The company's President and CEO, Bradley J. Dodson, stated that they will thoroughly review the letter's contents. He emphasized that Civeo's Board and management team regularly evaluate various options for creating long-term value, including capital allocation priorities and cost structure assessment.

The company expressed openness to maintaining dialogue with Engine Capital and other shareholders, focusing on their shared objective of enhancing shareholder value.

Engine Capital LP, owning approximately 9.8% of Civeo (NYSE: CVEO), has sent a letter to the company's Board of Directors highlighting opportunities to address what they perceive as significant undervaluation in the public market. The activist investor asserts that Civeo is trading at approximately 3.6x EV to 2025 EBITDA multiple.

Engine Capital proposes several strategic actions to unlock shareholder value, including:

• Eliminating the current dividend
• Implementing an aggressive share repurchase program
• Targeting a 1.75x leverage ratio
• Significantly reducing costs

The investor suggests these measures could potentially deliver approximately $47 per share for shareholders in a standalone scenario. Additionally, Engine Capital suggests that a potential sale of Civeo could provide an alternative path to delivering significant value.

Civeo (NYSE: CVEO) has received an updated coverage from Stonegate Capital Partners for Q4 2024. The company demonstrated strong free cash flow generation of $68.4M in FY24, with guidance for 2025 FCF between $30M to $40M.

Key developments include securing a six-year, A$1.4B integrated services contract renewal across eleven villages and completing a strategic acquisition of four villages in the Bowen Basin valued at ~$67M. The company's 2025 guidance projects revenue between $630M to $660M and adjusted EBITDA of $80M to $90M.

While facing challenges in the Canadian segment, Civeo maintains a strong position through disciplined capital allocation, robust balance sheet, and continued Australian expansion, positioning itself for long-term shareholder value creation.

Civeo (NYSE:CVEO) reported Q4 2024 financial results with revenues of $151.0 million, net loss of $15.1 million, and operating cash flow of $9.5 million. Full-year 2024 showed revenues of $682.1 million, net loss of $17.1 million, and operating cash flow of $83.5 million.

Key highlights include:

• Returned $44.0 million to shareholders (65% of free cash flow) through dividends and share repurchases
• Secured A$1.4 billion six-year Australian integrated services contract renewal
• Australian revenues grew 23% year-over-year in Q4
• Announced agreement to acquire four villages in Australian Bowen Basin
• Canadian operations faced headwinds, implementing cost restructuring with expected $3 million one-time costs and 25% overhead headcount reduction

2025 guidance (excluding Australian acquisition): revenues of $630.0-660.0 million, Adjusted EBITDA of $80.0-90.0 million, and capital expenditures of $25.0-30.0 million.

Civeo (NYSE:CVEO) has announced a definitive agreement to acquire four villages with 1,340 rooms in Australia's Bowen Basin for A$105 million (US$67 million). The acquisition will be funded through cash on hand and borrowings from existing credit facilities.

The transaction expands Civeo's presence in the Bowen Basin, particularly entering the Blackwater region, and includes long-term take-or-pay contracts with blue-chip metallurgical coal producers. The company expects annualized revenue of approximately A$50 million (US$32 million) and EBITDA of A$27 million (US$17 million).

The deal is expected to close in Q2 2025, subject to regulatory approvals and customary conditions, and is anticipated to be immediately accretive to operating cash flow.

Civeo (NYSE:CVEO) has scheduled its fourth quarter 2024 earnings conference call for Thursday, February 27th, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The company will release its financial and operating results before market opens on the same day.

Investors can participate via phone by dialing 877-423-9813 (U.S.) or 201-689-8573 (international) with conference ID 13751856#. A replay will be available through March 6th by dialing 844-512-2921 (U.S.) or 412-317-6671 (international). Alternatively, participants can access the webcast through Civeo's Investor Relations website at www.civeo.com.

Civeo (NYSE:CVEO) has announced a quarterly cash dividend of $0.25 per common share. The dividend will be paid on March 17, 2025 to shareholders of record as of the close of business on February 24, 2025. The company has designated this dividend as an 'eligible dividend' for Canadian tax purposes under the Income Tax Act.

Civeo (NYSE: CVEO) has secured a six-year contract extension worth A$1.4 billion with a major resources company in Western Australia, effective January 1, 2025. The contract expands Civeo's operations from seven to eleven villages, with services including catering, retail, cleaning, facilities maintenance, and health solutions.

The company has been managing the four additional villages under a Notice To Proceed agreement since Q2 2024. This expansion strengthens Civeo's presence in Australian integrated services, where revenue is expected to reach A$340 million in 2024, a significant increase from A$40 million in 2019. The company is progressing toward its target of A$500 million in Australian integrated services revenue by 2027.