Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Civeo Announces First Quarter 2015 Earnings
Source: GlobeNewswire Inc.
Strong operating cash flows after capital expenditures driven by cost containment and capital discipline
Announcing receipt of necessary lender commitments to amend credit facility, expanding leverage covenants and allowing for planned migration to Canada
Civeo's focus remains on maximizing occupancy and revenues, reducing costs and limiting capital spending
Civeo Corporation (NYSE:CVEO) today reported financial results for the first quarter ended March 31, 2015.
Bradley J. Dodson, President and Chief Executive Officer of Civeo, said, "We are pleased with our results for the first quarter 2015, in light of difficult market conditions, as well as our ability to increase operating cash flows after capital expenditures when compared to the first quarter 2014. We remain confident in our team's ability to manage through the headwinds and continue meeting and exceeding the needs of our clients to generate the best possible results for shareholders."
Mr. Dodson continued, "We are starting to see opportunities emerge in our legacy oil sands markets driven by turnaround and maintenance activity. However, our customers remain cautious regarding their commitments to capital spending, making timing difficult to predict. In addition, we remain cautiously optimistic on the prospect of LNG development on the west coast of Canada, an opportunity for which Civeo has land banked several potential lodge locations. In the first quarter, we were awarded multi-year contracts for certain of our lodges and villages in both Canada and Australia, as well as some shorter-term lodge contracts and a build-for-sale contract. In our U.S. operations, we have been negatively impacted by the unprecedented swiftness of the rig count correction, which has resulted in lower operating results."
Mr. Dodson concluded, "We remain focused on completing our previously announced migration to Canada and are making substantial progress. We have received the necessary commitments from our lending group to allow us to navigate through this difficult period. The shareholder vote to approve the migration is scheduled for May 14, 2015. Operationally, we continue to aggressively pursue opportunities for both new and existing assets, while vigilantly managing operating costs and capital spending."
FIRST QUARTER 2015 RESULTS
In the first quarter of 2015, the Company generated revenues of $171.0 million, EBITDA of $48.1 million and Adjusted EBITDA of $53.0 million. Net loss for the quarter was essentially zero, inclusive of a $2.4 million (or $0.02 per diluted share) after-tax loss related to a decision to close Civeo's U.S. manufacturing facility and a $0.8 million (or $0.01 per diluted share) after-tax loss from costs incurred in connection with the proposed migration to Canada.
(EBITDA is defined as net income plus interest, taxes, depreciation and amortization and Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred associated with the spin-off and the migration).
In the first quarter of 2014, the Company generated revenues of $252.8 million. Net income in the year ago period was $36.2 million, or $0.34 per diluted share. EBITDA and Adjusted EBITDA in the first quarter of 2014 was $92.3 million and $92.9 million, respectively.
Revenues and Adjusted EBITDA declined in 2015 as compared to 2014 primarily due to lower occupancy levels in the Company's Australian villages and Canadian lodges. In addition, first quarter 2015 results were impacted by the unfavorable impact of a stronger U.S. dollar compared to the Canadian dollar and the Australian dollar, which declined in relative value by 11% and 12%, respectively, on a year-over-year basis.
BUSINESS SEGMENT RESULTS
(Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2015 to the results for the first quarter of 2014. The 2015 results discussed below exclude the migration expenses noted above.)
Canada
The Canadian segment generated revenues of $116.9 million and EBITDA of $37.5 million for the first quarter of 2015 compared to revenues and EBITDA of $180.3 million and $61.8 million, respectively, in the first quarter of 2014. The Company's first quarter 2015 results were negatively impacted by a weaker Canadian dollar relative to the U.S. dollar, which reduced revenues by $14.5 million and EBITDA by $4.6 million. Excluding the year-over-year impact of exchange rates, revenues would have decreased $48.9 million and EBITDA would have decreased by $19.7 million. On a constant currency basis, revenues decreased due to reduced occupancy at lodges, as well as lower contract camp revenue due to large pipeline projects that did not recur in 2015. These items were partially offset by the opening of the Company's McClelland Lake lodge in the second quarter of 2014. Additionally, SG&A expenses were lower year-over-year due to cost containment efforts that resulted in lower compensation expense and overhead costs. RevPAR decreased 36% year-over-year to $74 in the first quarter of 2015, compared to $115 in the first quarter of 2014. The RevPAR decrease was attributable to declining foreign exchange rates and lower occupancy.
CVEO just got awarded 4 new contracts worth C$64 mil!
Wow.. Should've waited.. This is awful
Bought 300 more shares today
Thinking about adding more today
It seems $4.08 is the current top price unless we hear any good news!
It's rebounding on the day. Should end green
CVEO has bounced over 81.33% from $2.25 to $4.08!
Resistance at $4.08 then nothing till $4.47
Yes. $4.0799 today!
I can't stop grinning. Great birthday present lol
Killin it! Glad I loaded
Very possible!
$3.8972 hit today!
What price will be for the coming merger deal?
Hoping it rebounds today. Almost bought more, but bought a different energy instead
Cool! CVEO has bounced 57.78% from 2.25 to 3.55 so far!
Another HOD finish at $3.49. Last half hour has been strong all week. Guess that is when the big boys come in.
CVEO
NYMEX up and CVEO has hit $3.47:
"$51.44
Change
+0.65 +1.28%
Volume
109,715"
CVEO
$3.36 printed.
CVEO
Three headwinds today: NYMEX under $51, overall market down and CVEO now over-bought on Wm%R, CCI. RSI is OK.
CVEO
Finished at $3.29 -- stay away MMs. In the last minute there was approx. 500K shares @ $3.28 on the bid. Someone wants in.
CVEO
Did you note that the proxy release was 2 minutes after the supply data? Coincidence or good timing by the company?
CVEO
Not doing too bad today, based on the supply news
Don't know the implications, but immediate jump in pps:
http://ih.advfn.com/p.php?pid=nmona&article=66283872&symbol=CVEO
"The board of directors believes that the Redomicile Transaction will improve our operational and financial flexibility and provide for a more efficient corporate structure to achieve our strategic and financial goals.
Immediately after the Redomicile Transaction, the number of common shares you will own in Civeo Canada (“Common Shares”) will be the same as the number of shares you held in Civeo US immediately prior to the Redomicile Transaction, and your relative economic interest in the Civeo group of companies will remain unchanged. After the Redomicile Transaction, Civeo Canada will continue to conduct the same businesses as the Civeo group of companies conducted prior to the Redomicile Transaction.
We expect the Common Shares to be listed on the New York Stock Exchange (“NYSE”) under the symbol “CVEO,” the same symbol under which your shares in Civeo US are currently listed and traded. Currently, there is no established public trading market for the Common Shares of Civeo Canada.
After the Redomicile Transaction, as we describe in this proxy statement/prospectus, your rights under British Columbia corporate law as a holder of Common Shares of Civeo Canada will differ from your current rights under Delaware corporate law as a holder of shares of Civeo US common stock. In addition, Civeo Canada’s proposed articles differ in some respects from Civeo US’s certificate of incorporation and bylaws, as further described in this proxy statement/prospectus.
Upon completion of the Redomicile Transaction, we will remain subject to the U.S. Securities and Exchange Commission’s reporting requirements, the mandates of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act and the applicable corporate governance rules of the NYSE, and we will continue to report our consolidated financial results in U.S. dollars and under U.S. generally accepted accounting principles. After the Redomicile Transaction, we must also comply with any additional reporting and governance requirements of applicable Canadian law.
Under U.S. federal income tax law, U.S. holders of shares of Civeo US common stock generally will recognize gain but not loss on the exchange of such shares for Common Shares of Civeo Canada in the Redomicile Transaction. Generally, Canadian resident holders of shares of Civeo US common stock will, for"
CVEO
Nymex May crude oil rises $1.84, or 3.5%, to close at $53.98 a barrel
CVEO
New high $3.27 hit so far which is over 45.33% huge bounce!
$3.27 has printed. NYMEX hit $52.03.
CVEO
Chart looking very good and should do well as long as oil stays above $50.
Technical analysis (as of: 2015-04-06 4:38:13 PM)
Overall:
Stoxline rating system posted a BUY today, same as yesterday. This stock seems to continue bullish move. If you bought, continue to hold stock until SELL signal. You are relatively safe to buy now, upward move is expected.
Target:
Six months: 4.59 One year: 5.36
Support:
Support1: 2.89 Support2: 2.25
Resistance:
Resistance1: 3.93 Resistance2: 4.59
Pivot:
2.63
_______________________________________
http://www.stoxline.com/quote.php?symbol=cveo
Resistance at $3.93 seems too high, but the way to $3.52/3.53 seems easy with oil holding don't you think?
CVEO
Today's high was $3.14! The 52-week low was $2.25. So CVEO has already bounced 39.56% so far! Those $2.25 ~ $2.65 sellers ($2.66 was the previous 52-week low) should kick themselves now!
Finished close to HOD at $3.12. Watch those MMs. Already one t-trade at $3.10. Got to be some who are short given the nice rise in the pps the last week.
CVEO
Nice! $3.075 so far... $2.8356 is the history now!
Now hit $3.06 and .07 on ask. Oil keeps going up.
CVEO
CVEO hit the new high $3.05 so far! Today's low was $2.85 which is higher than last Friday's $2.8356!
Interesting article on oil prices:
_____________________________________
What determines if oil prices go up or down?
Nick Cunningham , OilPrice.com 11:59 a.m. EDT April 6, 2015
It appears as if oil prices could be on the verge of a rebound, with new data showing that the U.S. oil patch is hitting an inflection point. While specific shale regions – such as North Dakota's Bakken and Texas' Eagle Ford – have posted production declines, overall U.S. oil output managed to edge up in recent months.
But now that U.S. production has finally dipped, it may augur a new phase for oil markets in which production cutbacks could lead to higher prices. The Energy Information Administration reported on April 1 that total U.S. oil production fell for the week ending on March 27, falling 36,000 barrels per day to 9.38 million barrels per day.
The prior week's production level of 9.42 million barrels per day was the highest level in three decades. If output continues to decline, mid-March 2015 could mark the peak of U.S. oil output, at least for the foreseeable future.
MORE: Three triggers that will send oil crashing again
That would raise the possibility that oil prices have bottomed out. Where do they go from here? Is it possible that oil prices could dip any lower? If they are indeed about to rise, will they rise quickly or stay flat for a while before gradually ascending?
There are several major determinants of oil prices one should consider.
1. U.S. Production. The first and most important thing to watch is the aforementioned levels of U.S. production. Weekly figures come out from the EIA and we should get a better sense of where U.S. oil flows are going this week. Consistent weekly drops will put upward pressure on prices.
2. Iran Negotiations. In the very short-term, a lot depends on the outcomes of the Iranian negotiations. A breakthrough in negotiations on April 2nd sent oil prices down immediately but this has been temporary. Oil prices will again correct themselves once the markets realize that Iranian oil won't begin flowing overnight, as there are still several months before a final accord is signed and even more time before the U.N. Nuclear Agency confirms compliance. Still, over the long-term, new Iranian oil will keep prices from rising too much. On the flip side, a breakdown in the ongoing talks between now and June will raise geopolitical tension and ensure Iranian crude stays on the sidelines, resulting in higher oil prices.
3. Credit Crunch. Another significant development is the reevaluation of credit lines for distressed oil drillers. Banks typically readjust their credit facilities for oil and gas companies in April and October. With the onset of April, smaller oil producers will find that their assets are no longer worth what they once were in the eyes of their creditors. That will lead to a large cutback in credit as oil firms become unqualified for generous lending. As a result, junk oil firms could face a liquidity crisis as they run out of cash, pushing some into bankruptcy. Quicksilver Resources filed for Chapter 11 bankruptcy in March. Oklahoma-based Samson Resources hinted on March 31 that it may do the same. Bankruptcies could pick up pace in the next few weeks, and the quicker it happens, the quicker the supply side of the oil equation will begin to balance out, which will eventually push up oil prices.
MORE: Wall Street losing millions from bad energy loans
4. Oil storage. Fears have arisen that oil storage is running out. Indeed, oil diverted into storage has skyrocketed, and key hubs have seen their storage tanks filling up rather quickly. More than 77 percent of storage capacity is used up in Cushing, Oklahoma. Yet with production slowing and a much improved pipeline network, storage will probably not reach its limits. Once that becomes apparent, investors will shed their fears and bid up oil prices.
5. Oil Demand. Demand is starting to look stronger as well. U.S. drivers drove a record amount of miles for the month of January, capitalizing on lower gasoline prices. Major U.S. oil refineries are also taking advantage of the glut. Normally a time for spring maintenance, refineries processed 15.7 million barrels per day for the week ending on March 27, a record level for this time of year. As we move through spring and summer approaches, refineries will ramp up processing even further, providing a lift to demand.
MORE: Is Warren Buffett wrong about oil stocks?
6. The Fed. Another influential development on oil prices will be the next moves by the U.S. Federal Reserve. The Fed is expected to raise interest rates, but a specific timeline is unknown. If and when interest rates rise, there will be two effects. First the dollar will appreciate, pushing down oil prices. At the same time, higher interest rates will raise the cost of capital for oil producers, potentially cutting into marginal oil production. The possible termination of cheap money could spell an end to a lot of oil production, although this would likely take place over time. It is hard to say how these two countervailing forces ultimately shake out. In the immediate aftermath at least, a stronger dollar will prevail, causing oil prices to sink.
7. China. As with most things in the energy world, a lot hinges on China. China has been taking advantage of collapsed prices by stepping up its purchases of oil to fill its strategic petroleum reserve (SPR). That provided a bit of a demand boost in recent months, putting a floor beneath prices. But now China's SPR is nearly full, so its imports could plateau for a while. Lower oil demand – or at least demand not growing as fast as expected – will keep oil prices from rising too much.
_____________________________________________
http://www.usatoday.com/story/money/markets/2015/04/06/oil-price-determinants/25357815/
CVEO
It finally got corrected. iHub marked the trade as a t-trade and there was no balancing until very late. After the trade the bid/ask stayed at $2.92/2.93. Maybe Greenlight called the MMs to remind them. If they didn't they should have.
"19:18 $ 2.92 High 500"
http://www.nasdaq.com/symbol/cveo/after-hours
E-trade Level II showing it this morning as at $2.92 and NYMEX $50.47 (for now).
CVEO
Hopefully that transaction was a manipulation sale and CVEO rises again tomorrow...
The price $2.8356 was even lower than $2.84 (eight cents less than the closing price $2.92)! It does not matter if that was a "buy" or "sell"...
Followers
|
10
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
479
|
Created
|
10/22/14
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |