Civeo Corporation Announces Share Repurchase Authorization

Rhea-AI Summary

Civeo Corporation (NYSE:CVEO) has authorized a share repurchase program for up to 715,000 common shares, representing 5% of its outstanding shares. This initiative will be funded through cash on hand and operational cash flow. CEO Bradley J. Dodson expressed confidence in the company's future, citing this buyback as an opportunity to enhance shareholder value while maintaining a focus on debt reduction. The program aligns with Canadian securities regulations and reflects the board's commitment to returning capital to shareholders.

Positive

• Authorization to repurchase 715,000 shares boosting shareholder value.
• Confidence in company’s future as stated by CEO.
• Repurchases funded from cash on hand and operational cash flow.

Negative

• None.

HOUSTON & CALGARY, Alberta--(BUSINESS WIRE)-- Civeo Corporation (NYSE:CVEO) announced today that its Board of Directors has authorized the Company to repurchase up to 5% of its total common shares outstanding, or approximately 715,000 common shares, through the facilities of the New York Stock Exchange over the next twelve months. Civeo intends to fund repurchases through cash on hand and cash generated from operations.

“Today’s announcement reflects our confidence in Civeo’s business and the future of this company. We believe this share repurchase program provides an opportunity to acquire shares at an attractive valuation, while continuing to allocate a majority of our free cash flow generation towards debt reduction,” said Bradley J. Dodson, Civeo’s President & Chief Executive Officer.

This share repurchase authorization is made in reliance on the “other published markets” exemption from the formal issuer bid requirements under Canadian securities laws for normal course issuer bids and represents the maximum annual share repurchase authorization permitted under the exemption. Civeo will continue to evaluate further opportunities to return capital to shareholders beyond this current authorization.

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 future plans and outlook, 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 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 annual report on Form 10-K for the year ended December 31, 2020 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/20210830005545/en/

Carolyn J. Stone

Civeo Corporation

Senior Vice President & Chief Financial Officer

713-510-2400

Source: Civeo Corporation

FAQ

What is the recent share repurchase announcement by Civeo Corporation?

Civeo Corporation announced a buyback program for up to 715,000 common shares, accounting for 5% of its outstanding shares.

How will Civeo fund the share repurchase program?

The repurchase will be funded through cash on hand and cash generated from operations.

What does Civeo's share repurchase indicate about its financial health?

The buyback reflects Civeo's confidence in its business outlook and aims to enhance shareholder value while managing debt.

When is the duration of Civeo's share repurchase program?

The authorized repurchase program will take place over the next twelve months.

What percentage of shares is Civeo planning to repurchase?

Civeo is authorized to repurchase up to 5% of its total common shares outstanding.