Civeo Corporation provides a suite of hospitality services for its guests in the natural resources industry, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities.
The company provides services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. The company also manages development activiti...
Civeo Corporation provides a suite of hospitality services for its guests in the natural resources industry, including lodging, catering and food service, housekeeping and maintenance at accommodation facilities.
The company provides services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. The company also manages development activities for workforce accommodation facilities, including site selection, permitting, engineering and design and manufacturing and site construction management, along with providing hospitality services once the facility is constructed.
The company primarily operates in some of the world’s most active met coal, oil, liquefied natural gas (LNG), and iron ore producing regions, where, in many cases, traditional hospitality accommodations and related infrastructure services are limited. The company’s customers include mining companies, major and independent oil companies, engineering companies, and oilfield and mining service companies. The company’s extensive suite of services enables it to meet the unique needs of each of its customers while providing comfortable accommodations for their employees. The company’s customers can outsource their hospitality accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource production efforts.
The company's hospitality services span the lifecycle of customer projects, from the initial exploration and resource delineation to long-term production. Initially, as customers assess the resource potential and determine how they will develop it, they typically need the company’s hospitality services for a limited number of employees for an uncertain duration of time. The company’s fleet of mobile assets in Canada is well-suited to support this initial exploratory stage as customers evaluate their development and construction plans. As development of the resource begins, the company can serve their needs through either: its integrated services model in customer-owned facilities, its scalable lodge or village model, or its fleet of mobile assets, particularly for shorter-term projects, such as pipeline construction and seasonal drilling programs. As projects grow and headcount needs increase, the company is able to meet its customers' growing needs at its accommodation facilities or with its hospitality services. By providing infrastructure support and hospitality services early in the project lifecycle, the company is well positioned to continue to service its customers throughout the production phase, which typically lasts decades.
The company owns and operates 25 lodges and villages with approximately 26,000 rooms. The company operates approximately 19,000 rooms across 22 locations where the accommodation assets are owned by its customers. Additionally, in Canada, the company offers a fleet of mobile assets that serve shorter-term projects, such as pipeline construction. The company has long-standing relationships with many of its customers, many of whom are, or are affiliates of, large, investment-grade energy and mining companies.
Customers
The company provides its hospitality services to customers in the natural resources industry. The company’s scalable facilities provide long-term and temporary workforce accommodations where, in many cases, traditional hospitality accommodations and related infrastructure services often are not accessible, sufficient or cost effective.
Through its wide range of hospitality services offerings, the company is able to identify, solve, and implement solutions and services. In addition to catering and food service, lodging, housekeeping, and maintenance at accommodation facilities that the company or its customers own, its hospitality services have evolved to include fitness centers, water and wastewater treatment, laundry service, and many other enhancements.
Australia
During the year ended December 31, 2024, the company generated 63% of its revenue from its Australian operations. As of December 31, 2024, the company owned 8,950 rooms across eight villages, of which 7,488 rooms service the Bowen Basin of central Queensland, one of the premiers met coal basins in the world. The company is Australia’s largest provider of hospitality services for people working in the Bowen Basin. The company provides hospitality services on a day rate basis to mining and related service companies (including construction contractors), typically under short- and medium-term contracts (from several months to six years) with minimum nightly room commitments. In addition, the company provides integrated services to the mining industry in Western Australia and South Australia.
Australian Market
The company’s Australian villages are strategically located in proximity to long-lived, mines operated by multiple investment-grade, international mining companies. The company’s customers are typically developing and producing met coal, iron ore and other minerals which has resource lives that are measured in decades. As such, their spending levels tend to react similarly to commodity prices as the spending levels of its Canadian customers.
The company's Australian operations primarily serve the Bowen Basin of Queensland and the Pilbara region in Western Australia. During the year ended December 31, 2024, its five villages in the Bowen Basin generated 40% of its Australian revenue, or 25% of its consolidated revenue. The Bowen Basin contains one of the largest coal deposits in Australia and is renowned for its premium met coal. In addition, the company provides village operation and mine site cleaning services at 11 customer locations in the Pilbara region, which is renowned for high-grade iron ore production. Its villages and customer-owned locations are focused on the mines in the central portion of the Pilbara and Bowen Basins and are well positioned for the active mines in the region.
Beyond the met coal and iron ore markets served in the Pilbara and Bowen Basins, the company serves several other markets with three additional villages and ten customer-owned villages. At the end of 2024, the company had two villages with over 1,000 combined rooms in the Gunnedah Basin, a thermal and met coal region in New South Wales. In Western Australia, the company serves workforces related to LNG facilities operations on the Northwest Shelf through its Karratha village. In addition, the company provides hospitality services in Western Australia and South Australia at ten customer-owned villages, which support workforces related to nickel, copper, zinc, silver, and gold production in the Goldfields-Esperance region, lithium production in the Pilbara region, and copper, silver, and gold in Western Australia and South Australia.
The company's Australian segment includes eight company-owned villages with 8,950 rooms as of December 31, 2024, which are strategically located near long-lived mines operated by large mining companies. The company's Australian business provides hospitality services to mining and related service companies under short- and medium-term contracts. The company’s growth plan for this part of the business continues to include enhanced occupancy and expansion of these properties where there is durable long-term demand, as well as providing hospitality services at customer-owned assets.
The company’s Coppabella, Dysart, Moranbah, Middlemount and Nebo villages are in the Bowen Basin. Coppabella, at over 3,100 rooms, is its largest village and provides rooms and related hospitality services to a variety of customers. Each of these villages supports both operational workforce needs and contractor needs with resort style amenities, including swimming pools, gyms, a walking track and a tavern.
The company’s Narrabri and Boggabri villages in New South Wales provide rooms and related hospitality services to met and thermal coal mines and coal seam gas in the Gunnedah Basin. The company’s Karratha village, in Western Australia, services workforces related to LNG facilities operations on the Northwest Shelf.
Australian Hospitality Services at Third-Party Owned Facilities
The company also provides hospitality services at customer-owned villages to the mining industry in Western Australia and South Australia. Historically, this has been focused on natural resource production-related village facilities that are primarily owned by iron ore production companies. The company provides village hospitality services at 21 customer-owned locations, which represent over 17,000 rooms, primarily in the Pilbara region of Western Australia, one of the premier iron ore bodies in the world, and in the Goldfields-Esperance region of Western Australia. The facilities it manages range anywhere from 200 to over 1,900 rooms. The company works together with its customers to customize its service offerings depending on the customer's needs. Hospitality services can be performed on an end-to-end basis, including catering and food service, housekeeping, and site maintenance, or just portions of the services offered, such as food service only. Mine site office cleaning services are also provided at some of the company’s customer-owned locations.
Canada
During the year ended December 31, 2024, the company generated approximately 36% of its revenue from its Canadian operations. It is western Canada’s largest provider of hospitality services for people working in remote locations. The company provides its services through its lodges and mobile assets, as well as at customer-owned locations. The company’s hospitality services support workforces in the Canadian LNG and oil sands markets, as well as in a variety of oil and natural gas drilling, mining, pipeline, and related natural resource applications.
Canadian Oil Sands Lodges
During the year ended December 31, 2024, activity in the Athabasca oil sands region generated approximately 82% of the company’s Canadian revenue, or 30% of its consolidated revenue. The oil sands region continues to represent one of the world’s largest reserves for heavy oil. The company’s Wapasu Creek, Athabasca, Beaver River, Fort McMurray Village, Grey Wolf, Hudson, and Borealis lodges are focused on the northern region of the Athabasca oil sands, where customers primarily utilize surface mining to extract bitumen. The company’s Conklin, Anzac, Red Earth and Wabasca lodges are focused on the southern portion of the region where it primarily serves in-situ operations and pipeline expansion and maintenance activity.
The company’s oil sands lodges primarily support personnel for ongoing operations associated with surface mining and in-situ oil sands projects, as well as maintenance, turnaround and expansionary personnel, generally under short- and medium-term contracts. Most of the company’s oil sands lodges are located on land with leases obtained from the province of Alberta, with initial terms of ten years, or subleased from the resource developer. The company’s leases have expiration dates that range from 2025 to 2030 with the exception of one lease that expires in 2049. In recent years, the company has successfully renewed or extended all expiring land leases which it has requested to renew or extend.
To operate a lodge in Canada, the company is required to obtain a development permit from the regional municipality in which the lodge is located. The company’s development permits have expiration dates that range from 2025 to 2028.
The company provides a range of hospitality services at its lodges, including reservation management, food service, housekeeping, and facilities management. The company’s lodge guests receive amenities similar to those of an economy, full-service, urban hotel, with its service offering a room and three meals a day.
The company provides its hospitality services at the lodges it owns on a day rate or monthly rental basis, and its customers typically commit to short- to long-term contracts (from several months up to several years).
Canadian Hospitality Services at Third-Party Owned Facilities
The company also provides hospitality services at customer-owned facilities. The facilities the company manages typically range anywhere from 500 to 1,500 rooms. The company customizes its service offerings depending on the customer's needs. The company’s focus on hospitality service contracts has allowed it to successfully pursue food service-only opportunities. Due to its experience servicing customer-owned facilities, this business easily fits into the company's overall strategy.
Canadian Mobile Assets
The company’s mobile assets consist of modular, skid-mounted accommodations and central facilities that can be configured to serve a multitude of short- to medium-term accommodation needs. Dormitory, kitchen and ancillary assets can be rapidly mobilized and demobilized and are scalable to support 200 to 800 people in a single location. In addition to asset rental, the company provides hospitality services such as food service and housekeeping, as well as other camp management services. The company’s mobile assets service the traditional oil and gas sector in Alberta and British Columbia and in-situ oil sands drilling and development operations in Alberta, as well as pipeline construction crews throughout Western Canada. These assets have also been used in the past in disaster relief efforts, the 2010 Vancouver Winter Olympic Games and a variety of other non-energy related projects.
The company's mobile assets are rented on a per unit basis based on the number of days that a customer utilizes the asset, and, in some cases, involve standby rental arrangements. The company's focus on hospitality service contracts has allowed it to successfully pursue food service-only opportunities. Due to its experience servicing customer-owned facilities, this business easily fits into the company's overall strategy.
United States
In the first quarter of 2023, the company sold its accommodation assets in Louisiana, and in the second quarter of 2024, the company sold the land at its Louisiana location.
Community Engagement
In Australia, the company's community relations program intends to build and maintain a positive social license to operate by consulting and engaging with local regional communities from project inception through development, construction, and operations. The company also provides support to local community groups through sponsorship and in-kind contributions to local events and initiatives. Additionally, all its food suppliers are Australian companies and, where possible, are based locally. Through its membership with Supply Nation, a non-profit organization committed to supplier diversity and Indigenous business development, the company directed approximately A$15.3 million in 2024 into Indigenous-owned and operated companies, and it is always looking for more opportunities to partner with these businesses.
In addition, the company has three unincorporated joint venture partnerships with Indigenous landowners in Western Australia. Under these agreements, the company strives to develop the business capacity, project management skills and expertise of the Indigenous joint venture members, providing local employment opportunities and training.
With a focus on long-term Indigenous community participation, the company’s Canadian operations continue to work closely with a number of First Nations to develop mutually beneficial partnerships focused on revenue sharing, capacity building, employment and community investment and support. For over a decade, the company’s Canadian operations supported Buffalo Metis Catering, a partnership with three Metis communities in the Regional Municipality of Wood Buffalo. Through this partnership, food and housekeeping services were delivered to three of the company’s lodges. Beyond these services, this partnership provided a business incubator environment for a number of Metis business ventures. The company’s Canadian operations also procure services from a number of other First Nations-owned, Metis-owned and member-owned businesses, including water hauling, snow removal and security services.
In 2018, Civeo entered three new Indigenous partnerships in the oil sands region and two new partnerships in British Columbia and, in 2021, Civeo entered into a new partnership in British Columbia. The company’s partnerships in British Columbia are tied to accommodations contracts secured by Civeo for the Kitimat LNG Facility, the CGL pipeline project that originates in the North Montney region of north-east British Columbia and the Trans Mountain expansion project that twins an existing pipeline between Edmonton, Alberta and Burnaby, British Columbia. In 2024, Civeo entered into an agreement with an Indigenous group in Ontario and is in the process of developing business opportunities.
Customers
The company's customers primarily operate in oil sands mining and development, drilling, exploration, and extraction of oil and natural gas, as well as in coal and other extractive industries. To a lesser extent, the company also supports other activities, including pipeline construction, forestry, and humanitarian aid. Its largest customers in 2024 were Suncor Energy Inc. and Fortescue Metals Group Ltd., who each accounted for more than 10% of the company's 2024 revenues.
Competition
The company's primary competitors in Australia for its village hospitality services are customer-owned and operated villages, as well as Ausco Modular (a subsidiary of Modulaire Group), Fleetwood Corporation, and smaller independent village operators. The company competes against ISS, Sodexo, Compass Group, Northern Rise (as a division of Sirrom Corporation), and Cater Care for third-party facility management services.
The company's primary competitors in Canada in lodge and mobile asset hospitality services include ATCO, Black Diamond, Dexterra, and Clean Harbors, Inc. Some of these competitors have one or two locations similar to the company's oil sands lodges; however, based on its estimates, these competitors do not have the breadth or scale of the company's lodge operations. In Canada, the company also competes against Aramark, Sodexo, Compass Group, and Royal Camp Services for third-party facility management and hospitality services.
Lodge and Village Contracts
During the year ended December 31, 2024, revenues from the company's lodges and villages represented over 60% of its consolidated revenues. Its contract terms generally provide for a daily rate for a reserved room and an occupied room rate that compensates the company for hospitality services, including food service, housekeeping, utilities, and maintenance for workers staying in the lodges and villages. In most multi-year contracts, the company's rates typically have annual escalation provisions to cover increases in labor, food, and consumables costs over the contract term. In some contracts, customers have a contractual right to terminate, for reasons other than a breach, in exchange for a termination fee. The company's customers typically contract for hospitality services under contracts with terms that range from several months to twelve years. The contracts expire throughout the year, and for many of the near-term expirations, the company is in the process of negotiating extensions or new commitments.
Long-Term Take-or-Pay Contracts: Over the term of a take-or-pay contract, the customer commits to either a minimum number of rooms over a specified period or an aggregate number of room nights over the period, generally for terms greater than 12 months. During the year ended December 31, 2024, the company billed approximately 2.3 million room nights under its long-term take-or-pay contracts, which included 0.5 million room nights in excess of the take-or-pay minimums.
Short-Term Take-or-Pay Contracts: During the year ended December 31, 2024, the company billed approximately 0.7 million room nights under its short-term take-or-pay contracts.
Exclusivity Contracts: Over the term of an exclusivity contract, rather than receiving a minimum room commitment, the company is the exclusive hospitality service provider for the customer's employees working on a specific project or projects. During the year ended December 31, 2024, the company billed approximately 1.7 million room nights under its exclusivity contracts.
Casual / Walk-ins: During the year ended December 31, 2024, the company billed approximately 0.1 million room nights to casual or walk-in customers.
Integrated Services Contracts
During the year ended December 31, 2024, revenues from the company's customer-owned locations represented 38% of its consolidated revenues. Its contract terms generally provide a rate on a per guest per day basis for hospitality services, including food service and housekeeping. Similar to its owned lodge and village contracts, in most multi-year contracts, the company's rates typically have annual escalation provisions to cover increases in labor, food, and consumables costs over the contract term.
Seasonality of Operations
The company's operations are directly affected by seasonal weather. During the Australian rainy season between November and April, the company’s operations in Queensland and the northern parts of Western Australia can be impacted by cyclones, monsoons, and resultant flooding. A portion of its Canadian operations is conducted during the winter months when the winter freeze in remote regions is required for customers’ activities to occur. The spring thaw in these frontier regions restricts operations in the second quarter (year ended December 31, 2024) and adversely affects its customers' operations and its ability to provide services. Customers’ maintenance activities in the oil sands region, such as shutdown and turnaround activity, are typically performed in the second and third quarters annually. The company's Canadian operations have also been impacted by forest fires and flooding in the past five years.
History
Civeo Corporation was founded in 1977.
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