Houston and Calgary, Alberta, Jan. 22, 2019 (Globe Newswire) -- Civeo Corporation (NYSE:CVEO) today announced that it has secured two contracts expected to total approximately US$90 million in revenues spanning 2019-2023. This includes:
Civeo was awarded a room commitment from Whitehaven Coal Mining Limited to provide rooms and hospitality services from the Company's existing Boggabri and Narrabri accommodations facilities in Australia. The contract is for an initial three year time period, with a minimum room commitment and an option to extend for an additional two years. It is anticipated the initial commitment will generate approximately A$22 million in total revenues over 2019-2021.
The Company was awarded a hospitality services contract to operate a 1,540-room facility for an oil sands operator in Canada with expected revenues totaling approximately C$100 million over the initial term. The contract is for an initial term of five years with an option to extend for an additional five years.
"These new contracts across our operating regions in both Canada and Australia demonstrate the strength and quality of our service offerings and are consistent with our strategy of continuing to win work at our current lodges while expanding our offering of hospitality services to customer owned facilities. These contracts were already contemplated in the preliminary 2019 guidance communicated on our third quarter 2018 earnings conference call,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer.
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 food services, facility management, water systems and group 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.
Frank C. Steininger
Executive Vice President & Chief Financial Officer