Civeo(US:CVEO)2025-10-31 16:38Financial Performance - Revenue for Q3 2025 was $170,491,000, a decrease of 3.8% compared to $176,338,000 in Q3 2024[9] - Net loss attributable to Civeo Corporation for Q3 2025 was $455,000, compared to a net loss of $5,091,000 in Q3 2024[9] - Operating income for Q3 2025 was $6,966,000, significantly higher than the operating income of $44,000 in Q3 2024[9] - Comprehensive loss attributable to Civeo Corporation for Q3 2025 was $1,219,000, compared to a comprehensive income of $2,121,000 in Q3 2024[11] - Basic net loss per share for Q3 2025 was $(0.04), compared to $(0.36) in Q3 2024[9] - Net loss for the nine months ended September 30, 2025, was $13,617,000, compared to a net loss of $2,998,000 for the same period in 2024[18] - Total revenues for the nine months ended September 30, 2025, were $477,229, down 10.2% from $531,000 in the same period of 2024[27] - For the three months ended September 30, 2025, total revenues were $170.491 million, compared to $176.338 million for the same period in 2024, representing a decrease of approximately 3.8%[85] - Total revenues decreased by $53.9 million, or 10%, to $477.2 million for the nine months ended September 30, 2025, compared to $531.2 million in 2024[137] - Net loss attributable to Civeo Corporation was $13.6 million, or $1.04 per diluted share, for the nine months ended September 30, 2025, compared to a net loss of $2.0 million, or $0.14 per diluted share, in 2024[135] Assets and Liabilities - Total current assets increased to $140,130,000 as of September 30, 2025, from $110,453,000 at the end of 2024[14] - Long-term debt rose to $187,937,000 as of September 30, 2025, compared to $43,299,000 at the end of 2024[14] - Total assets increased to $491,067,000 as of September 30, 2025, from $405,072,000 at the end of 2024[14] - Accumulated deficit increased to $(1,047,425,000) as of September 30, 2025, from $(980,720,000) at the end of 2024[14] - Total debt as of September 30, 2025, amounted to $187,937,000, a significant increase from $43,299,000 as of December 31, 2024[52] Cash Flow and Expenditures - Cash and cash equivalents increased to $12,003,000 in Q3 2025, up from $5,204,000 at the end of 2024[14] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $3,072,000, significantly lower than $74,014,000 in 2024[18] - Capital expenditures for the nine months ended September 30, 2025, totaled $15,380,000, compared to $18,405,000 in 2024[18] - Cash used in investing activities increased significantly to $85.9 million in 2025 from $7.5 million in 2024, mainly due to the Qantac Acquisition[156] - Capital expenditures for 2025 are expected to be in the range of $20 million to $25 million, compared to $26.1 million in 2024[112] Share Repurchase and Dividends - Total common shares repurchased in the nine months ended September 30, 2025, amounted to 48,684,000 shares, compared to 24,060,000 shares in 2024[18] - Civeo's share repurchase program was increased to allow for the repurchase of up to 20% of total common shares, approximately 2.7 million shares, as of April 2025[67] - The company repurchased shares worth $26,210,000 in the three months ended September 30, 2025, at an average price of $24.93 per share[69] - The company suspended quarterly dividends in April 2025 to prioritize share repurchases, with future dividends dependent on various financial factors[165] Segment Performance - Accommodation revenues in Australia increased to $58,405 for Q3 2025, up 13.5% from $51,370 in Q3 2024[27] - Total Canada revenues decreased to $46,031 for Q3 2025, down 20.2% from $57,736 in Q3 2024[27] - The Australian segment reported revenues of $124.5 million in Q3 2025, an increase of $7.8 million, or 7%, compared to Q3 2024, with a gross margin of 26.9%[127][129] - The Canadian segment experienced a revenue decline of $11.7 million, or 20%, in Q3 2025, primarily due to a 20% decrease in billed rooms at oil sands lodges[130] - The Australian segment reported revenues of $340.8 million for the nine months ended September 30, 2025, an increase of $23.8 million, or 8%, compared to 2024[148] - The Canadian segment reported revenues of $136.5 million for the nine months ended September 30, 2025, a decrease of $68.0 million or 33% compared to $204.4 million in the same period of 2024[151] Costs and Expenses - Consolidated cost of sales and services decreased by $11.8 million, or 9%, in Q3 2025 compared to Q3 2024, attributed to reduced occupancy levels and cost reduction measures[118] - Selling, general and administrative expenses decreased by $1.5 million, or 8%, in Q3 2025, mainly due to lower incentive compensation and office expenses[120] - Operating income decreased by $7.1 million, or 63%, to $4.3 million for the nine months ended September 30, 2025, primarily due to lower lodge occupancy in Canada and higher SG&A expenses[144] - SG&A expenses increased by $1.1 million, or 2%, to $56.8 million for the nine months ended September 30, 2025, driven by higher professional fees related to shareholder activist costs[140] Legal and Compliance - The company is involved in various pending legal proceedings, but believes that any ultimate liability will not have a material adverse effect on its consolidated financial position[173] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended September 30, 2025[171] - The company's disclosure controls and procedures were deemed effective as of September 30, 2025, providing reasonable assurance regarding the accuracy of disclosed information[170] Market Conditions - The average price of met coal was $189.51 per tonne for the quarter ended October 24, 2025, with prices fluctuating between $168 and $198 per tonne for the nine months through September 2025[98][100] - Iron ore prices averaged $96.97 per tonne during the third quarter of 2025, driven by demand from steel producer restocking activity[102] - WTI crude prices decreased approximately 13% year-to-date through the end of the third quarter of 2025, with forecasts predicting an average of $60.00 per barrel in the fourth quarter[103] - WCS crude prices averaged $52.48 per barrel in the third quarter of 2025, down from $59.97 in the same quarter of 2024[105] - Labor costs are under pressure due to a tight labor market in Australia, with unemployment around 4% and increased staffing costs impacting the hospitality sector[108]