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New Lodging Contract in the Athabasca In-situ Region
Civeo Corporation (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 won a C$22 million contract to support a pipeline construction customer in the in-situ region of the Athabasca oil sands play in Alberta, Canada. The contract term extends through the first quarter of 2016.
As a result of this new contract and other activity in the area, Civeo will redevelop its Mariana Lake location into a 526-room open lodge with private washrooms, arctic corridors, recreational facilities and other amenities.
Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated, “We are pleased that we were awarded the pipeline contract to support transforming the Mariana Lake location into a premier accommodations lodge in this area of the in-situ oil sands play. In light of the current macroeconomic environment and consistent with our stated strategy, any incremental investments will continue to be predicated on obtaining new customer commitments.”
The contract reduces the uncontracted revenue included in the Company’s full year 2015 guidance for revenue and EBITDA. The capital spending associated with the redevelopment of the Mariana Lake location was included in the Company’s most recent capital expenditure guidance for 2015.
About Civeo Corporation:
Civeo Corporation is a leading provider of workforce accommodations with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations and provides catering, facility management, water systems and logistics services. Civeo currently owns a total of seventeen lodges and villages in operation in Canada and Australia, with an aggregate of more than 22,000 rooms.
