Civeo Agrees to Sell its McClelland Lake Lodge Assets for Approximately C$49 Million
- Sale of assets for US$36 million with expected gains of US$35 million. Increase in cash flow of US$20 million.
- None.
Highlights of the transaction include:
-
Purchase price of approximately
US with anticipated net proceeds of$36 million US after net demobilization costs;$30 million -
Anticipated gains from the McClelland Lake Lodge assets of approximately
US to be recognized throughout the second half of 2023 and first quarter of 2024;$35 million - Possible future opportunities to provide ancillary services to the buyer; and
-
An expected increase in the Company’s 2023 cash flow of approximately
US , with the remaining net proceeds to be received in 2024.$20 million
“We believe that this transaction maximizes the value of the McClelland Lake Lodge assets. Driven by numerous factors, including mining activity for energy transition and inflationary pressure on newbuild pricing, demand for existing accommodations assets is strong throughout
About Civeo
Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. 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 operates a total of 24 lodges and villages in
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends and liquidity needs, and expectations regarding the closing of the transaction, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the failure to satisfy closing conditions, the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in,
View source version on businesswire.com: https://www.businesswire.com/news/home/20230912493453/en/
Regan Nielsen
Civeo Corporation
Vice President, Corporate Development & Investor Relations
713-510-2400
Source: Civeo Corporation