By curtailing some of its operations, like those in Oklahoma oil and gas industry service provider Civeo Corporation, the one that workers like to call the “man camp” company, reported improved second quarter earnings in a release this week.
The Canadian-based firm reported second quarter revenues were $114.7 million while net income was $6.1 million. While the company said it was pleased with the results, they were less than the $122.2 million in revenues during the second quarter of 2019. However, Civeo also reported a net loss of $15.3 million in net income in the second quarter of last year.
Adjusted EBITDA for the second quarter of this year was $28.1 million and free cash flow of $25.1 million. Civeo closed its operations in Yukon, Oklahoma this year after the company saw a drastic decline in a need for its “man camps” at oilfield operations in Oklahoma, Texas and around the world. because of COVID-19. Leaders also took note of the economic impact of the pandemic.
“We are continuing to closely monitor the COVID-19 situation and follow our stringent safety protocols,” said Bradley J. Dodson, CIVEO’s President and Chief Executive Officer.
He also said the layoffs of workers and shutdown of some U.S. operations helped the company.
“While keeping our customers and guests safe, we were able to address our cost structure quickly in North America as occupancy and activity decreased swiftly in March and April. With a strong market position in Canada, we were able to capture the majority of the occupancy in our target markets, allowing us to generate positive operational contributions.,” he said.
But Dodson also anticipates occupancy, at least in Canada to improve “modestly” in the second half of 2020. CIVEO said its Canadian segment suffered a 30% decline in revenues from year-to-year, one driven by a 45% year-over-year decline in billed rooms. The decline was driven by the drop in oil prices and the COVID-19 pandemic.
As of June 30, 2020, Civeo had total liquidity of approximately $166.2 million, consisting of $158.9 million available under its revolving credit facilities and $7.3 million of cash on hand.
Civeo’s total debt outstanding on June 30, 2020 was $299.5 million, a $15.3 million decrease since March 31, 2020. The decrease consisted of $28.0 million in debt payments from cash flow generated by the business, partially offset by an unfavorable foreign currency translation impact of $12.7 million.
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Source: BusinessWire