Civeo Announces Agreement to Repurchase Approximately 375 thousand Common Shares

Rhea-AI Summary

Civeo Corporation (NYSE:CVEO) announced a share repurchase of approximately 375,000 common shares, equating to 2.6% of its fully diluted shares, at a cost of around $10.7 million. This decision highlights the company's confidence in its business outlook and aims to utilize free cash flow for purchasing shares at an attractive valuation, according to CEO Bradley Dodson. Civeo provides hospitality services primarily in the natural resources sector, operating 27 lodges with over 28,000 rooms across Canada, Australia, and the U.S.

Positive

• Share repurchase of 375,000 shares enhances shareholder value.
• Demonstrates confidence in the company's future business outlook.
• Use of free cash flow for share buyback indicates financial health.

Negative

• None.

HOUSTON & CALGARY, Alberta--(BUSINESS WIRE)-- Civeo Corporation (NYSE:CVEO) (“Civeo” or the “Company”), a leading provider of hospitality services to the natural resources sector, today announced that it has agreed to repurchase approximately 375 thousand Civeo common shares, representing 2.6% of the fully-diluted common shares outstanding, from a shareholder, for approximately $10.7 million.

“Today’s announcement reflects our confidence in Civeo’s business outlook, and this transaction provides an opportunity to deploy our free cash flow to acquire shares of the Company at an attractive valuation,” said Bradley Dodson, President and CEO of Civeo.

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 27 lodges and villages in Canada, Australia and the U.S., with an aggregate of over 28,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

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 include the statements regarding Civeo’s business outlook and free cash flow 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 global health concerns and pandemics, including the COVID-19 pandemic, any increases in or severity of COVID-19 cases (including due to existing or new variants) and the risk that room occupancy may decline if our customers are limited or restricted in the availability of personnel who may become ill or be subjected to quarantine, risks associated with 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, Australia, and fluctuations or sharp declines in the current and future prices of oil, natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with the company’s ability to integrate acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, global weather conditions, natural disasters and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220815005190/en/

Regan Nielsen

Civeo Corporation

Senior Director, Corporate Development & Investor Relations

713-510-2400

Source: Civeo Corporation

FAQ

What is the share repurchase plan announced by Civeo Corporation?

Civeo Corporation announced a plan to repurchase approximately 375,000 common shares for around $10.7 million.

How much of Civeo's common shares will be repurchased?

Civeo will repurchase about 2.6% of its fully diluted common shares outstanding.

What does Civeo's share buyback indicate about the company?

The buyback reflects Civeo's confidence in its business outlook and a strategic use of its free cash flow.

When was the Civeo share repurchase announcement made?

The announcement was made recently, highlighting the company's strategic financial decisions.

What is the stock symbol for Civeo Corporation?

Civeo Corporation is traded under the stock symbol CVEO on the New York Stock Exchange.