Civeo(US:CVEO)2021-04-29 16:00Financial Performance - Revenues for the three months ended March 31, 2021, were $125,430,000, a decrease of 9.5% compared to $138,792,000 for the same period in 2020[9] - Net loss attributable to Civeo Corporation for the three months ended March 31, 2021, was $9,484,000, compared to a net loss of $146,070,000 for the same period in 2020[9] - Basic and diluted net loss per share attributable to Civeo Corporation common shareholders was $(0.70) for the three months ended March 31, 2021, compared to $(10.43) for the same period in 2020[9] - Comprehensive loss attributable to Civeo Corporation for the three months ended March 31, 2021, was $11,101,000, compared to $194,516,000 for the same period in 2020[13] - Net loss for the three months ended March 31, 2021, was $9,425 thousand, a significant improvement compared to a net loss of $145,812 thousand for the same period in 2020[28] - Operating cash flows for the three months ended March 31, 2021, were $12,817 thousand, down from $20,837 thousand in the prior year[28] - Total revenues for the first quarter of 2021 were $125,430,000, a decrease of 9.4% compared to $138,792,000 in the same period of 2020[42] - Operating loss for the total company was $(9,901,000) for Q1 2021, compared to an operating loss of $(149,069,000) in Q1 2020, indicating an improvement in operational performance[88] Assets and Liabilities - Total current assets decreased to $108,660,000 as of March 31, 2021, from $119,213,000 as of December 31, 2020[17] - Total liabilities decreased to $346,039,000 as of March 31, 2021, from $365,496,000 as of December 31, 2020[17] - Long-term debt, less current maturities, decreased to $200,756,000 as of March 31, 2021, from $214,000,000 as of December 31, 2020[17] - Total assets as of March 31, 2021, were $710,178,000, slightly down from $719,523,000 at the end of Q1 2020[88] - The company had a total debt of $235.803 million as of March 31, 2021, compared to $248.585 million at the end of 2020[68] Revenue Segments - Canada segment revenues decreased to $61,885,000 in Q1 2021 from $79,348,000 in Q1 2020, representing a decline of 22.0%[42] - Australia segment revenues increased to $59,637,000 in Q1 2021 from $49,113,000 in Q1 2020, reflecting a growth of 21.0%[42] - U.S. segment revenues fell to $3,908,000 in Q1 2021 from $10,331,000 in Q1 2020, a decrease of 62.1%[42] - Canadian segment revenues decreased by $17.5 million, or 22%, in Q1 2021 compared to Q1 2020, with a 26% decrease excluding currency effects[140] - Australian segment revenues increased by $10.5 million, or 21%, in Q1 2021 compared to Q1 2020, with a 3% increase excluding currency effects[144] - U.S. segment revenues decreased by $6.4 million, or 62%, in Q1 2021 compared to Q1 2020, due to reduced occupancy and drilling activity[146] Cash Flow and Expenditures - Cash and cash equivalents as of March 31, 2021, were $5,455,000, down from $6,155,000 as of December 31, 2020[17] - Capital expenditures for the three months ended March 31, 2021, were $3,372 thousand, compared to $2,651 thousand for the same period in 2020[28] - Cash provided by operations for the three months ended March 31, 2021, was $12.8 million, down 38.5% from $20.8 million in the same period of 2020[150] - Cash used in investing activities increased to $3.3 million in Q1 2021, compared to cash used of $2.6 million in Q1 2020, primarily due to proceeds from asset sales[152] - Net cash used in financing activities was $16.7 million in Q1 2021, compared to $15.6 million in Q1 2020, mainly due to repayments under revolving credit facilities[154] Impairments and Expenses - The company recorded impairment expenses of $93.6 million related to goodwill in Q1 2020 due to a decline in oil prices and market conditions[56] - The carrying values of certain asset groups were written down to estimated fair values of $43.5 million, resulting in an impairment expense of $38.1 million in the Canadian segment[59] - The company reported depreciation and amortization expenses of $21,269 thousand for the three months ended March 31, 2021, compared to $25,502 thousand in the same period of 2020[28] - Depreciation and amortization expense decreased by $4.2 million, or 17%, in Q1 2021 compared to Q1 2020, mainly due to prior impairments and asset life extensions[131] - Net interest expense decreased by $2.2 million, or 40%, in Q1 2021 compared to Q1 2020, attributed to lower average debt levels and interest rates[135] Taxation - Civeo's income tax expense for the three months ended March 31, 2021, was $1.1 million, or (12.9%) of pretax loss, compared to a tax benefit of $8.8 million, or 5.7% of pretax loss, for the same period in 2020[74] - Civeo's effective tax rate for the three months ended March 31, 2021, was impacted by the removal of Canada and the U.S. from the annual effective tax rate computation due to loss jurisdictions[74] Market Conditions and Future Outlook - The average price of Western Canadian Select (WCS) crude in Q1 2021 was $46.28 per barrel, compared to a low of $19.73 in Q2 2020, showing recovery in oil prices[108] - The WCS Differential decreased from $15.35 per barrel at the end of Q4 2020 to $10.26 at the end of Q1 2021, indicating improved pricing conditions for Canadian oil[108] - The ongoing trade dispute between China and Australia has led to volatility in Australian met coal pricing, impacting demand and occupancy at Australian villages[114] - Increased global infrastructure spending is expected to support long-term demand for met coal and iron ore, particularly in developing economies[113] - The company plans to enhance the quality of operations and maintain financial discipline as market conditions evolve[118] Shareholder Information - A reverse share split was executed on November 19, 2020, converting every twelve common shares into one common share, affecting the conversion price of preferred shares[31] - Future dividends will depend on financial condition, results of operations, and other factors, with no assurance of payment[161] - A total of 56,889 shares were purchased in February 2021 at an average price of $19.57 per share[177] - The shares purchased in February consisted of those surrendered by participants in the 2014 Equity Participation Plan to settle personal tax liabilities[177] - There was no share repurchase program in place during the quarter ended March 31, 2021[177]