HOUSTON and CALGARY, Alberta, Dec. 03, 2018 (GLOBE NEWSWIRE) — Civeo Corporation (“Civeo” or the “Company”) (NYSE:CVEO), one of the largest global providers of workforce accommodations, logistics and facility management services to the natural resource industry, announced today that it has been awarded a room commitment from LNG Canada. The Company also announced it has elected to terminate the Bird-Civeo Joint Venture (“B-C JV”) and no longer participate in the design and construction of LNG Canada’s Cedar Valley Lodge.
LNG Canada Room Commitment at Sitka Lodge
Civeo is pleased to announce today that it has been awarded a room commitment from LNG Canada to provide rooms and services from the Company’s existing Sitka accommodations facility. Civeo’s Sitka Lodge, located in Kitimat, British Columbia, has 646 rooms, with plans to expand to 1,100 rooms to support this contract, along with previously announced commitments. The contract is for an initial 18- month time period, with a minimum room commitment and options for extension of up to 36 months. In accordance with this contract, LNG Canada will use the Sitka Lodge for the initial construction phases of the LNG Canada export terminal. This contract at Sitka Lodge is in addition to the previously announced Sitka room commitments from Coastal GasLink Pipeline Project (“CGL”) and LNG Canada’s engineering, procurement and construction firm.
Bradley J. Dodson, Civeo’s President and Chief Executive Officer, stated “We are pleased to partner with the local First Nation to serve LNG Canada at our Sitka Lodge. The Sitka Lodge is strategically located to serve LNG infrastructure investment and can be expanded beyond the 1,100 rooms as room demand in the region dictates. We look forward to delivering best-in-class accommodations on this exciting LNG project.”
Bird-Civeo Joint Venture
In 2016, B-C JV announced it had been selected as the contractor for the design and construction of LNG Canada’s Cedar Valley Lodge. After the final investment decision for LNG Canada’s LNG export terminal in Kitimat, British Columbia was deferred in 2016, and against a changing market backdrop over the last two and a half years, Civeo has made the strategic decision to begin outsourcing the manufacturing of accommodation units and close its manufacturing plant in Alberta, Canada. This decision aligns with Civeo’s sourcing strategy in its U.S. and Australian operations. As a result, Civeo felt it was in its best commercial interest, as well as the best interest of LNG Canada and its partner, to no longer participate in the B-C JV.
Mr. Dodson commented, “We are proud of the work that Civeo and B-C JV have completed on the Cedar Valley Lodge to date, and we look forward to continuing to be a partner to LNG Canada through our Sitka Lodge and our mobile camps supporting the Coastal GasLink Pipeline Project.”
About Civeo
Civeo Corporation is a leading provider of workforce accommodations, with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations, and provides catering, facility management, water systems and logistics services. Civeo currently operates a total of 30 lodges and villages in operation in Canada and Australia, with an aggregate of approximately 32,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo’s website at www.civeo.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward looking statements in this news release include the statements regarding Civeo’s future plans, priorities and borrowing needs; growth opportunities; optimism about activity, market demand and commodity price environment in 2018; and expected benefits of the contract with LNGC and other previously announced commitments. The forward-looking statements included herein are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity and developments in the Canadian oil sands, the level of demand for coal and other natural resources from Australia, and fluctuations in the current and future prices of oil, coal, iron ore and other minerals, risks associated with currency exchange rates, risks associated with the development of new projects, including whether such projects will continue in the future, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s annual report on Form 10-K for the year ended December 31, 2017 and other reports the Company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained in this news release speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACT:
Frank C. Steininger
Civeo Corporation
Senior Vice President & Chief Financial Officer
713-510-2400
Jeffrey Spittel
FTI Consulting
713-353-5407