Civeo Corp (CVEO) Reports Q3 2023 Earnings: Key Highlights
Civeo Corp (NYSE:CVEO) reported Q3 2023 revenues of $183.6 million and net income of $9.0 million.
The company reduced its total debt by $32.9 million to $103.2 million as of September 30, 2023.
Civeo Corp (NYSE:CVEO) announced a definitive agreement to sell McClelland Lake Lodge for approximately C$49 million, or US$36 million.
The company initiated a regular quarterly dividend of $0.25 per share and renewed its share repurchase program.
On October 27, 2023, Civeo Corp (NYSE:CVEO) released its financial and operating results for the third quarter ended September 30, 2023. The company reported revenues of $183.6 million, net income of $9.0 million, and operating cash flow of $36.8 million. Civeo Corp (NYSE:CVEO) also delivered Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million.
Financial Performance
Compared to the third quarter of 2022, Civeo Corp (NYSE:CVEO) generated slightly lower revenues of $183.6 million, down from $184.2 million. However, the company reported a higher net income of $9.0 million, up from $5.2 million in Q3 2022. The company's operating cash flow was $36.8 million, slightly down from $38.7 million in the same period last year.
Debt Reduction and Shareholder Returns
Civeo Corp (NYSE:CVEO) successfully reduced its total debt by $32.9 million to $103.2 million as of September 30, 2023. The company also returned capital to shareholders through the initiation of a quarterly dividend and renewal of its share repurchase program. The company's board of directors declared a quarterly cash dividend of $0.25 per common share, payable on December 18, 2023.
Business Segment Results
In the third quarter of 2023, the Canadian segment generated revenues of $95.1 million, operating income of $10.8 million, and Adjusted EBITDA of $23.0 million. The Australian segment generated revenues of $87.9 million, operating income of $9.1 million, and Adjusted EBITDA of $18.8 million.
Outlook for 2023
For the full year of 2023, Civeo Corp (NYSE:CVEO) is increasing its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $675 million to $685 million and $95 million to $100 million, respectively.
Conclusion
Civeo Corp (NYSE:CVEO)'s Q3 2023 results reflect solid operating results and strategic milestones. The company's commitment to returning capital to shareholders while maintaining the flexibility to deploy capital to fund growth opportunities and support existing operations is commendable.
Explore the complete 8-K earnings release (here) from Civeo Corp for further details.
This article first appeared on GuruFocus.
