Company Update (NYSE:CVEO): Civeo Corp Announces New Lodge in Kitimat, British Columbia
Civeo Corp (NYSE:CVEO), one of the largest integrated providers of workforce accommodations, logistics and facility management services to the natural resource industry, today announced that it has been awarded a contract with LNG Canada (“LNG Canada”) for the provision of open lodge rooms and associated services in Kitimat, British Columbia. The contract covers up to 400 rooms for approximately fifteen months for LNG Canada’s initial room needs. LNG Canada is a joint venture comprised ofShell Canada Energy, an affiliate of Royal Dutch Shell plc, and affiliates of PetroChina, Korea Gas Corporation and Mitsubishi Corporation.
To support this new contract, Civeo will develop a new accommodations facility, to be named Sitka Lodge, which will include private washrooms, recreational facilities and other amenities. Civeo’s Sitka Lodge will initially have 436 rooms with the potential to expand to serve future accommodations demand in the region.
Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated, “We are pleased that Civeo has been awarded this contract and that we are in a position to develop the Sitka lodge on the West Coast of Canada. This contract is an important milestone for Civeo and our clients, and we are excited to establish a strong position in the Kitimat region to support work associated with this potential LNG project. We are proud to be part of a project with the potential to transform Canada’s natural resource sector and look forward to working with LNG Canada in the region.”
In order to account for the initial construction of the Sitka Lodge, Civeo has increased its 2015 capital expenditure guidance. Civeo’s revised capital expenditure guidance for 2015, including the Sitka Lodge, is US$80 million to US$90 million, and revenues from the contract are expected to be largely recognized in 2016. (Original Source)
Shares of Civeo closed last Thursday at $2.94. CVEO has a 1-year high of $28.19 and a 1-year low of $2.25. The stock’s 50-day moving average is $3.59 and its 200-day moving average is $3.75.
Civeo Corp is anintegrated provider of long-term and temporary remote site accommodations, logistics and facility management services to the natural resource industry.