Financial Data and Key Metrics Changes - The company reported revenues of $193 million for the quarter, with an EBITDA equivalent cash flow of $116 million. The EBITDA equivalent over the last twelve months was $545 million [4] - A net loss of $32 million was recorded for the quarter, translating to $0.24 per share, compared to a net profit of approximately $20.2 million or $0.15 per share in the previous quarter [4][23] - The company has returned over $2.8 billion to shareholders through dividends over 85 consecutive quarters, with the latest dividend yielding approximately 13% based on the share price [4][25] Business Line Data and Key Metrics Changes - The container fleet generated approximately $85 million in gross charter hire, while the car carrier fleet contributed about $25 million, and the tanker fleet generated approximately $43 million [19] - The seven dry bulk vessels employed in the spot market contributed approximately $4.4 million in net charter revenue, down from $7.2 million in the previous quarter [19] - The overall utilization of the shipping fleet was 98.6%, with adjusted utilization at 99.8% when excluding unscheduled technical off-hire [12][13] Market Data and Key Metrics Changes - The charter backlog stands at $4.2 billion, with more than two-thirds of this backlog attributed to customers with investment-grade ratings, providing cash flow visibility [8][25] - The company has identified that approximately 27 vessels in its fleet will be affected by new U.S. tariffs on Chinese-built vessels, primarily impacting car carriers and tankers [14][15][86] Company Strategy and Development Direction - The company aims to enhance its fleet through investments in new technology and vessel upgrades, focusing on organic growth and compliance with stricter regulatory demands [11] - The strategy includes maintaining long-term charters with strong industrial players, which provides stability amid market volatility [42] - The company is exploring strategic opportunities for its rigs while remaining optimistic about future employment for the Hercules rig [7][8] Management's Comments on Operating Environment and Future Outlook - Management noted that recent market volatility and recession fears have made it challenging to trade vessels profitably in the spot market [5][7] - The company remains cautious about the current economic environment but is optimistic about finding new employment opportunities for its rigs [7][33] - Discussions with customers have resumed, indicating a potential increase in business transactions as market stability improves [42] Other Important Information - The company has been active in share repurchases, acquiring $10 million worth of shares below $8 per share [5][25] - The company has a strong liquidity position, with approximately $174 million in cash and cash equivalents and undrawn credit lines of about $48 million [23][25] Q&A Session Summary Question: Inquiry about vessel and rig operating expenses - Management confirmed a decrease in operating expenses, attributing it to cost savings at Hercules and noted that 17 vessels are scheduled for dry docking this year, which is higher than usual [27][28] Question: Update on Hercules rig - The Hercules rig remains warm stacked in Norway, with ongoing discussions for new contracts, but no specific timeline can be provided [32][33] Question: Asset acquisition opportunities - Management indicated that market uncertainty has slowed decision-making processes, but discussions for long-term charters with strong industrial players are picking up again [42] Question: Long-term distribution potential and share repurchases - The company maintains a sustainable dividend level based on cash flow from owned assets, balancing capital allocation between investments, debt repayments, share buybacks, and dividends [64][65] Question: Impact of new U.S. tariffs on vessels - Approximately 27 vessels will be affected by the new tariffs, primarily impacting car carriers and tankers, but the company expects charterers to absorb these costs [14][15][86]

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [6][10] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [19][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [9][10] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [16][18] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [19] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [17][18] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [18] Company Strategy and Development Direction - The company plans to implement a capital allocation strategy focusing on redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, expecting volume levels to return to normalized levels by the end of the second quarter or third quarter [11][40] - The company believes that deepwater projects are more resilient during low price environments compared to onshore shale plays, with significant capital already invested [14][40] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [15] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure [16] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated a likely flat distribution for the second quarter, with potential adjustments in the third quarter based on project timelines and mechanical issue resolutions [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are seven active rigs drilling for potential production increases, with typical wells expected to produce 7,000 to 10,000 barrels per day [26][31] Question: Segment margin guidance for offshore segment - Management anticipates that the offshore segment will contribute significantly to annual EBITDA guidance, with OTS and marine segments expected to remain consistent with the first quarter [30] Question: Confidence in resolution of producer issues - Management expressed confidence based on real-time data from producers and noted that producers are incentivized to resolve issues quickly [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with expectations to reach this ratio rapidly as segment margins increase [42]

Financial Data and Key Metrics Changes - The first quarter was described as a transformational quarter for the company, successfully exiting the soda ash business and simplifying the balance sheet, which is expected to significantly reduce future cash costs [5][6] - The anticipated annual cash costs of running and sustaining the business have been reduced to approximately $425 million to $450 million [18][20] Business Segment Data and Key Metrics Changes - The offshore pipeline transportation segment is expected to see a significant increase in financial contribution due to new production facilities, Shenandoah and Salamanca, which will add nearly 200,000 barrels of oil per day of incremental production capacity [8][9] - The Marine Transportation segment is on pace to post record earnings in 2025, supported by steady demand and limited new construction in the market [15][17] - The Onshore Transportation and Services segment has seen steady volumes and is expected to increase as new offshore projects commence production [18] Market Data and Key Metrics Changes - Gulf Coast refinery utilization has recovered from approximately 80% in January to roughly 94% in late April, supporting the need for transportation of heavy and intermediate products [16][17] - The demand for moving petroleum products from the Gulf Coast to East and Mid-Atlantic markets remains steady due to inadequate regional refining capacity [17] Company Strategy and Development Direction - The company is focused on generating excess cash flow and plans to implement a capital allocation strategy that includes redeeming high-cost preferred units, paying down debt, and returning capital to unitholders [19][20] - The management is optimistic about the long-term value creation potential from the offshore expansion projects and the overall midstream energy space [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resolution of mechanical issues affecting production, with expectations for volume levels to return to normal by the end of the second quarter or third quarter [10][39] - The company believes that deepwater projects are more resilient during periods of low commodity prices compared to onshore shale plays, with significant capital already invested [12][13] Other Important Information - The Department of Interior's new permitting procedures are expected to expedite the development of domestic energy resources, potentially bringing forward opportunities that were previously slated for later [14] - Ten of the 22 active deepwater drilling rigs in the Gulf of America are working on leases dedicated to the company's pipeline infrastructure, indicating a strong strategic position [15] Q&A Session Summary Question: Thoughts on capital allocation and distribution - Management indicated that they are likely to maintain a flat distribution for the second quarter but will consider movements in the quarterly distribution for the third quarter and beyond [23] Question: Quantifying additional infield and subsea opportunities - Management noted that there are several active rigs drilling in fields dedicated to the company, with expectations for additional production in the range of 7,000 to 10,000 barrels per day from new wells [25][26] Question: Segment margin guidance for offshore segment - Management stated that while they do not provide segment guidance, they anticipate that the offshore segment will contribute significantly to overall EBITDA, especially as new projects come online [30] Question: Crude oil price impact on producer activity - Management expressed confidence that producers are incentivized to maintain production despite price fluctuations, citing low marginal lifting costs in the Gulf [40] Question: Target leverage ratio and distribution coverage ratio - The long-term target leverage ratio is around four times, with management confident in reaching this target rapidly as segment margins increase [41][42] Question: Marine segment day rates and new construction - Management indicated that day rates need to increase by 30% to 40% and be sustained for several years to incentivize new construction in the Marine segment [43]

Full-Year Fiscal 2025 Results May 8th, 2025 Safe Harbor Disclosure This presentation contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company's expected financial performance, including revenues, organic revenue growth, diluted EPS, and free cash flow; the Company's reinvestment in Clear Eyes as supply increases; the Company's ability to execute on its brand- building strategy and to drive free cash flo ...

Core Insights - Civeo Corporation reported a negative free cash flow of ($13.5M) in Q1 2025, a decline from $7.2M in the same period last year, primarily due to negative operating cash flow of ($8.4M) and capital expenditures of $5.3M [1][5] - The company reaffirmed its long-term free cash flow generation confidence, supported by a capital-light model and a high mix of recurring asset-light services revenue [1] - Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of free cash flow to complete the program, having repurchased 153,000 shares for approximately $3.3M in the quarter [1][5] Financial Performance - Civeo reported revenues of $144.0M and a net loss of $9.8M, with an Adjusted EBITDA of $12.7M [5] - The company revised its 2025 guidance, projecting revenues between $620M and $650M and Adjusted EBITDA of $75M to $85M [5] - Net debt increased by $20.9M quarter-over-quarter to $59.0M, resulting in a net leverage ratio of 0.8x [1]

Financial Data and Key Metrics Changes - Total revenues for the first quarter were $144 million, with a net loss of $9.8 million or $0.72 per diluted share [12] - Adjusted EBITDA was $12.7 million, with negative operating cash flow of $8.4 million [12] - The decrease in adjusted EBITDA compared to the previous year was primarily due to reduced build rooms in Canadian lodges [12] Business Line Data and Key Metrics Changes - Australian segment revenues increased by 13% year over year to $103.6 million, with adjusted EBITDA remaining relatively flat at $20.5 million [13] - Canadian segment revenues decreased to $40.4 million from $67.2 million in the previous year, with adjusted EBITDA at negative $200,000 [15] Market Data and Key Metrics Changes - In Australia, revenues increased by 18% on a constant currency basis, driven by increased activity in integrated services [8] - Canadian build rooms decreased to 359,000 from 610,000 in the previous year due to customer spending reductions [15] Company Strategy and Development Direction - The company has increased its share repurchase authorization from 10% to 20% of total shares outstanding and suspended the quarterly dividend to enhance long-term shareholder value [6][20] - The focus is on optimizing the cost structure in Canada and enhancing operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that the Canadian division is facing economic and political uncertainty, impacting performance [25] - The company expects to continue generating free cash flow, despite challenges, and remains confident in its ability to execute the updated capital allocation framework [26] Other Important Information - The company plans to allocate 100% of annual free cash flow to share repurchases until the expanded authorization is completed [6] - Capital expenditures for the first quarter were $5.3 million, down from $5.6 million in the previous year [17] Q&A Session Summary Question: What is the rationale behind the changes to the dividend and capital allocation? - Management indicated that the decision was based on extensive shareholder engagement and the realization that the dividend was not being valued, thus shifting capital to share repurchases made more sense [29] Question: What are the benefits of the joint venture with the Six Nations in Canada? - The joint venture is crucial for winning work in Canada, as First Nation relationships are often necessary for bidding on projects [31] Question: Are there any larger infrastructure projects expected to generate revenue in the next few years? - Potential opportunities include additional pipeline projects and carbon sequestration initiatives in Alberta [37] Question: How is the company addressing cost-cutting measures? - The consulting firm is reviewing the North American cost structure to optimize expenses in response to the changing outlook for the Canadian business [38] Question: What is the outlook for free cash flow in the coming years? - Management remains optimistic that free cash flow will improve in the future, despite current guidance being lower due to market conditions [56]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $144 million, with a net loss of $9.8 million or $0.72 per diluted share, and adjusted EBITDA of $12.7 million, reflecting a decrease compared to the previous year [11][12] - The company reported negative operating cash flow of $8.4 million, primarily due to seasonal impacts on working capital [11] - Civeo's net debt increased by $21 million to $59 million as of March 31, 2025, with a net leverage ratio of 0.8 times [15] Business Line Data and Key Metrics Changes - Australian segment revenues increased by 13% year-over-year to $103.6 million, with adjusted EBITDA remaining relatively flat at $20.5 million due to rising power and staffing costs [12][13] - Canadian segment revenues decreased significantly to $40.4 million from $67.2 million in the previous year, with adjusted EBITDA at negative $200,000, driven by reduced customer spending and the wind down of LNG-related activities [14] Market Data and Key Metrics Changes - In Australia, strong occupancy levels were reported, with 625,000 build rooms, a modest increase from the previous year [13] - In Canada, billed rooms totaled 359,000, down from 610,000 in the first quarter of 2024, reflecting ongoing economic and political uncertainties [14] Company Strategy and Development Direction - The company has revised its capital allocation strategy, increasing share repurchase authorization from 10% to 20% of total shares outstanding and suspending the quarterly dividend to enhance long-term shareholder value [4][19] - Civeo plans to allocate 100% of its annual free cash flow to share repurchases until the expanded authorization is completed [4][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow, despite macroeconomic challenges, and emphasized a focus on operational efficiency and cost structure optimization [8][24] - The company lowered its full-year 2025 revenue and adjusted EBITDA guidance to $620 million to $650 million and $75 million to $85 million, respectively, reflecting a conservative outlook primarily influenced by Canadian market conditions [21][41] Other Important Information - Civeo is in the process of acquiring DeBoer Villages in the Australian Bowen Basin, expected to close in Q2 2025, which is anticipated to be immediately accretive to operating cash flow [6][21] - The company has engaged a consulting firm to review its North American cost structure as part of its commitment to enhance shareholder value [8][36] Q&A Session Summary Question: What is the rationale behind the change in the capital allocation framework? - Management indicated that the decision to shift from dividends to share repurchases was based on extensive shareholder engagement and the realization that the dividend was not being valued by the market [27] Question: What are the benefits of the joint venture with the Six Nations in Canada? - The joint venture is crucial for winning work in Canada, as First Nation relationships are often necessary for bidding on projects, enhancing Civeo's competitive position [29] Question: Are there any larger infrastructure projects expected to generate revenue in the next few years? - Management mentioned potential pipeline projects and carbon sequestration initiatives in Alberta as opportunities for revenue generation [34] Question: How is the company addressing cost-cutting measures? - The consulting firm is helping to address the cost structure primarily in Canada, but the review will encompass all North American operations [36] Question: What is the outlook for free cash flow in 2025? - Management views the $20 million to $30 million free cash flow guidance as potentially low due to market conditions, with expectations for improvement in future years [51][56]