Civeo Announces Room Commitment from LNG Canada for the Sitka Lodge in Kitimat, B.C. and Termination of Bird-Civeo Joint Vent...
December 03 2018 - 6:00PM
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. SteiningerCiveo CorporationSenior Vice President &
Chief Financial Officer713-510-2400
Jeffrey SpittelFTI Consulting713-353-5407
Civeo (NYSE:CVEO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Civeo (NYSE:CVEO)
Historical Stock Chart
From Sep 2023 to Sep 2024