Civeo's A$1.4 Billion Contract Renewal: A Boon for Australian Integrated Services Revenue

Civeo Corporation, a leading provider of hospitality services to the natural resource industry, has announced a significant six-year contract renewal with an expanded scope in Australia. The contract, awarded by a leading resources player, is expected to generate approximately A$1.4 billion in revenues over the 2025-2030 contract period. This expansion reaffirms Civeo's continued strength and growth in integrated services in Australia and brings the company closer to achieving its Australian integrated services revenue target of A$500 million by 2027.

The new contract will incorporate catering and retail services, village, mine, and port site cleaning services, facilities maintenance, and the provision of health and wellbeing solutions. Civeo has been operating the four additional villages under a Limited Notice To Proceed agreement since the second quarter of 2024, demonstrating the company's ability to manage and scale operations efficiently. The contract expansion is a testament to the strength of Civeo's long-term customer relationships and the trust placed in the company to provide safe and exceptionally high-quality hospitality services.



Civeo's revenue in Australia has significantly increased since entering the integrated services market in 2019. The company expects to reach A$340 million in revenue in 2024, up from A$40 million of revenue when they first entered the Australian integrated services market. This growth trajectory aligns with Civeo's Australian integrated services revenue target of A$500 million by 2027. The contract renewal brings Civeo closer to achieving this target, as it expands their scope from operating seven villages to eleven villages, further solidifying their position in the Australian market.

The expanded scope of this contract significantly enhances Civeo's operational capabilities by increasing its service offerings and revenue potential. It also strengthens Civeo's market position in the Australian natural resource regions by demonstrating strong customer relationships, commitment to growth, and a solid reputation for quality services. As Civeo continues to grow and expand its integrated services business in Australia, investors can expect the company to maintain its focus on delivering exceptional hospitality services and driving shareholder value.