Mancamp provider Civeo Corporation reported an 8% increase in second quarter 2019 earnings compared to a year ago. The Canadian based company, with operations in Oklahoma delivered revenues of $122.2 million with a second quarter net loss of $15.3 million and adjusted earnings of $26.5 million.
During the quarter, the company completed acquisition of a catering firm in Western Australia and was awarded a four-year contract with a coal mining company in Australia as well. It also completed expansion of its Sitka Lodge to nearly 1,100 rooms in support of the LNG Canada project in British Columbia.
“The U.S. business continued to benefit from the repositioning of our well site assets to the Permian and Mid-Con regions in 2018, with Adjusted EBITDA up 30% on a year-over-year basis. Our second quarter Canadian results were down year-over-year due to lower year-over-year oil sands-related turnaround activity partially offset by increased LNG-related occupancy,” stated Bradley J. Dodson, Civeo’s President and Chief Executive Officer.
Mr. Dodson added, “We continue to focus on operational execution and winning work as opportunities present themselves. As a testament to this, we are pleased to announce a two-year contract renewal with one of our largest oil sands customers in Canada, as well as the previously announced contract renewal from BMC in Australia. These awards demonstrate our strong customer relationships and commitment to a quality service offering.”
By comparison, in the second quarter of 2018, Civeo generated revenues of $130.2 million and reported a net loss of $48.3 million, or $0.29 per share. The second quarter net loss was largely driven by the recognition of the accounting impact of a non-cash beneficial conversion feature on the outstanding preferred shares totaling $48.5 million, or $0.29 per share. During the second quarter of 2018, Civeo generated operating cash flow of $11.1 million and Adjusted EBITDA of $24.5 million.
Earlier this month, Civeo was awarded a two-year contract renewal with a major oil sands producer at the Fort McMurray Village and Grey Wolf lodges in Canada.