Civeo picks up major mine hospitality services contracts in Australia and Canada

first_imgCiveo Corporation has announced that it has secured two contracts expected to total approximately $90 million in revenues spanning 2019-2023. This includes in Australia with the award of a room commitment from Whitehaven Coal Mining to provide rooms and hospitality services from the company’s existing Boggabri and Narrabri accommodations facilities in Australia. The contract is for an initial three year time period, with a minimum room commitment and an option to extend for an additional two years. It is anticipated the initial commitment will generate approximately A$22 million in total revenues over 2019-2021.In Canada the Company was awarded a hospitality services contract to operate a 1,540-room facility for an oil sands operator in Canada with expected revenues totalling approximately C$100 million over the initial term. The contract is for an initial term of five years with an option to extend for an additional five years.“These new contracts across our operating regions in both Canada and Australia demonstrate the strength and quality of our service offerings and are consistent with our strategy of continuing to win work at our current lodges while expanding our offering of hospitality services to customer owned facilities. These contracts were already contemplated in the preliminary 2019 guidance communicated on our third quarter 2018 earnings conference call,” said Bradley J. Dodson, Civeo’s President and Chief Executive Officer.last_img read more