Mancamp provider Civeo Corporation reported first quarter revenues of nearly $168 million but at the same time a net loss of $6.4 million or 42 cents a share.
The Canadian based company, with an operation in El Reno, Oklahoma, recorded adjusted EBITDA of $20.2 million and negative free cash flow of $2.1 million. The company explained the negative cash flow in the first quarter was primarily the result of a seasonal build in working capital of $15.6 million.
By comparison, in the first quarter of 2022, Civeo generated revenues of $165.7 million and reported net income of $0.9 million, or $0.06 per diluted share. During the first quarter of 2022, Civeo produced operating cash flow of $2.0 million, Adjusted EBITDA of $25.6 million and free cash flow of $0.7 million.
The year-over-year decrease in Adjusted EBITDA in the first quarter of 2023 was primarily driven by lower contribution from Canadian mobile camps, continued inflationary pressures and the negative impact of weakened Australian and Canadian dollars relative to the U.S. dollar. The decrease was partially offset by a $1.7 million gain on sale of assets related to the divestiture of certain U.S. assets.
“ We experienced the typical first quarter seasonality which always results in reduced customer activity and cash flows, but we are well positioned for a strong second quarter of turnaround activity,” said Bradley J. Dodson, Civeo’s President and Chief Executive Officer.