Civeo Corporation Reports 14% Revenue Decline and Net Loss in Q2 2025

Civeo Corporation reported a significant decline in financial performance for the second quarter of 2025, with total revenues of $162.7 million, down 14% from $188.7 million in the same period last year. The company experienced a net loss attributable to Civeo of $3.3 million, or $0.25 per diluted share, compared to a net income of $8.2 million, or $0.57 per diluted share, in the prior year. The decrease in revenue was primarily driven by lower occupancy rates at oil sands lodges in Canada and reduced activity at the Sitka Lodge following the completion of the Kitimat LNG facility.

In the first half of 2025, Civeo's total revenues reached $306.7 million, a decrease of 14% from $354.8 million in the first half of 2024. The company's operating loss for the six months ended June 30, 2025, was $2.7 million, compared to an operating income of $11.3 million in the same period last year. The decline in revenue and profitability was attributed to lower billed rooms at oil sands lodges, reduced mobile asset activity, and a weaker Australian and Canadian dollar relative to the U.S. dollar.

Strategically, Civeo completed the acquisition of Qantac Pty Ltd on May 6, 2025, for approximately $68 million. This acquisition included four villages with 1,340 rooms in Queensland's Bowen Basin, expanding Civeo's accommodations business into a previously underserved region. The Qantac acquisition contributed $4.9 million in revenue during the second quarter of 2025, partially offsetting declines in other areas. The company also reported an increase in selling, general, and administrative expenses, primarily due to shareholder activist-related costs.

Operationally, Civeo's Australian segment reported a 4% increase in revenues to $112.7 million, driven by the Qantac acquisition and new business in integrated services villages. In contrast, the Canadian segment saw a 37% decline in revenues to $50.0 million, primarily due to lower occupancy at oil sands lodges. The company’s total assets increased to $508.8 million as of June 30, 2025, up from $405.1 million at the end of 2024, largely due to the acquisition and increased cash reserves.

Looking ahead, Civeo expects capital expenditures for 2025 to be in the range of $20 million to $25 million, focusing on maintenance and potential growth opportunities. The company has suspended its quarterly dividend to prioritize share repurchases and strengthen its balance sheet. Civeo's management remains cautious about the macroeconomic environment, including commodity price volatility and inflationary pressures, which could impact future performance and capital spending plans.