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Civeo Announces A 5-Year Integrated Services Contract Renewal With Expanded Scope In Australia

Benzinga · 11/15/2022 16:33

Civeo Corporation (NYSE:CVEO) today announced that it was awarded a five-year contract with a leading resources player to provide integrated services at six villages in Western Australia. Civeo was previously contracted to provide integrated services at four of the villages. The new contract took effect October 01, 2022 and includes options to extend the agreement by up to two years.

The new contract will incorporate accommodation, catering, and retail services; village, mine, and port site cleaning services; facilities maintenance; and the provision of health and wellbeing solutions.

It is anticipated the initial five-year commitment will generate approximately A$600m in revenues over 2022-2027. This contract was already contemplated in Civeo's full year 2022 consolidated, adjusted EBITDA guidance of US$110 - $115 million communicated on its third quarter 2022 earnings conference call.

"This contract renewal reaffirms the strength of Civeo's customer relationships and the high quality of our hospitality services. We are excited to grow our integrated services business by providing services to two additional villages. We look forward to capitalizing on further opportunities to grow as we maintain our commitment to top-tier service for all our customers," said Peter McCann, Civeo's Managing Director & Senior Vice President, Australia.