Civeo Corporation (NYSE: CVEO) today announced that it was awarded a six-year contract extension with a leading resources player to provide integrated services at eleven villages in Western Australia, effective January 1, 2025. This contract expands Civeo's scope from operating seven villages to eleven villages.
The new contract will incorporate catering and retail services; village, mine and port site cleaning services; facilities maintenance; and the provision of health and wellbeing solutions.
It is anticipated the six-year contract will generate approximately A$1.4B in revenues over the 2025-2030 contract period. Civeo has been operating the four additional villages under a Limited Notice To Proceed agreement since the second quarter of 2024.
"I am pleased with this major contract expansion as it reaffirms the continued strength and significant growth Civeo has generated in integrated services in Australia," said Bradley J. Dodson, President and Chief Executive Officer of Civeo. "This achievement not only shows the strength of our long-term customer relationships, but also brings us closer to achieving our Australian integrated services revenue target of $A500 million by 2027. We expect to reach $A340 million of revenue in 2024 in Australia, up from A$40 million of revenue we achieved when we first entered the Australian integrated services market in 2019."
Mr. Dodson concluded "Civeo has grown from initially operating four villages for this customer to eleven villages in the past five years, and we are excited to accelerate our growth with the expansion of our integrated services business in the region. We appreciate the trust this customer has placed in Civeo to provide safe and exceptionally high-quality hospitality services for five years now."
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 owns and operates a total of 24 lodges and villages in North America and Australia with an aggregate of approximately 26,000 rooms. In addition, Civeo operates and provides hospitality services at 22 customer-owned locations with more than 18,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange.
