Accretive acquisition strengthens Civeo's presence and deepens the Company's relationships with metallurgical coal producers in Basin
Expected to add approximately US$32 million and US$17 million of annualized revenue and Adjusted EBITDA, respectively
HOUSTON--BUSINESS WIRE--
Civeo Corporation (NYSE:CVEO) has completed its previously announced acquisition of four villages with 1,340 rooms in Australia's Bowen Basin and the associated customer contracts for total cash consideration of A$105 million, or approximately US$67 million. The acquisition was funded with cash on hand and borrowings from Civeo's existing revolving credit facility.
"We are pleased to have completed this important acquisition earlier than expected as it builds on Civeo's strong momentum in Australia and is immediately accretive to our company's operating cash flow," said Bradley J. Dodson, Civeo's President and Chief Executive Officer. "We have updated Civeo's 2025 guidance to reflect the expected revenue and Adjusted EBITDA contributions from these newly acquired villages and look forward to deepening our relationships with our customers in the Bowen Basin."
Mr. Dodson concluded, "Civeo's long-term track record of consistently generating positive free cash flow enables this disciplined, value-creating growth, while at the same time facilitating the accelerated return of capital to shareholders under our updated capital allocation framework."
Transaction Highlights
- Expands Civeo's Australian owned-village portfolio in the world's premier metallurgical coal basin, the Bowen Basin
- Establishes Civeo in the Blackwater region, extending its unmatched presence and capabilities across the wider Bowen Basin
- Provides solid contract coverage with new and existing, metallurgical coal producers under take-or-pay contracts
- Expected to add annualized revenue and EBITDA of approximately A$50 million and A$27 million, or approximately US$32 million and US$17 million, respectively
Financial Outlook Updated
Civeo recently announced updates to its full year 2025 revenue, Adjusted EBITDA and capital expenditure guidance in connection with its first quarter 2025 earnings announcement. With the completion of this transaction, the Company has updated its guidance for the remainder of 2025.
For the full year of 2025, Civeo expects revenue and Adjusted EBITDA of $640 million to $670 million and $86 million to $96 million, respectively. The company's 2025 capital expenditure guidance of $20 million to $25 million is unchanged.
About Civeo
Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Australian natural resource regions and the Canadian oil sands. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently owns and operates a total of 28 lodges and villages in Australia and North America with an aggregate of approximately 27,500 rooms. In addition, Civeo operates and provides hospitality services at 22 customer-owned locations with more than 18,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange.
