HOUSTON & CALGARY, Alberta - Civeo Corporation (NYSE:CVEO), a service provider specializing in workforce accommodations, has appointed Andrew S. Fraser as its new President for Canadian operations starting August 19, 2024. The incoming executive, with a background in executive management across the U.S., Canada, and internationally, will take over from Al Schoening, who is set to retire after a 13-year tenure.
Fraser's career spans 30 years, including leadership roles at NCSG Crane (NYSE:CR) and Heavy Haul, and Camex Equipment Sales and Rentals. Notably, he has held various executive positions at Finning International, impacting both Canadian and international divisions. His board experience includes ATB Financial and Aquatera Utilities among others.
Bradley J. Dodson, the CEO of Civeo, expressed confidence in Fraser's capabilities and gratitude towards Schoening for his significant contributions, especially during the challenging pandemic period.
Civeo, headquartered in Houston, Texas, and Calgary, Alberta, offers lodging and related services to workers in remote locations, primarily in the natural resource industry. The company manages 24 lodges and villages across Canada, Australia, and the U.S., totaling around 26,000 rooms. These facilities provide essential services such as food, housekeeping, and security to their clientele.
This announcement is based on a press release statement from Civeo Corporation.
In other recent news, Civeo Corporation has been making significant strides in its corporate structure and financial performance. The hospitality services provider recently announced the appointment of E. Collin Gerry as its new Senior Vice President, Chief Financial Officer (CFO), and Treasurer, effective from August 2024. This leadership change is part of Civeo's strategy to enhance its offerings and expand its market position.
Analyst firm Stifel has raised its price target for Civeo to $31, citing the company's consistent generation of strong free cash flow and strategy of returning cash to shareholders. The firm expects this approach to continue.
In terms of financial performance, despite mixed results in its first quarter of 2024, with growth in its Australian operations and a decline in the Canadian segment, Civeo maintained its full-year guidance. The Australian segment saw a 43% increase in adjusted EBITDA, driven by contract wins and improved margins.
Civeo is also actively exploring expansion opportunities in Alberta, Canada, and the Western US, aiming to grow its integrated services business in Australia to AUD 500 million by 2027. These recent developments reflect Civeo Corporation's commitment to its shareholders and its strategic growth initiatives.
InvestingPro Insights
As Civeo Corporation (NYSE:CVEO) welcomes Andrew S. Fraser as its new President for Canadian operations, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Civeo boasts a market capitalization of approximately $350.53 million USD, reflecting the size and scale of the company within the workforce accommodations sector.
An important metric to consider is the company's Price to Earnings (P/E) ratio, which currently stands at 11.39. This suggests that investors are paying $11.39 for every dollar of CVEO's earnings, indicating a potentially attractive valuation compared to the industry average. Additionally, the company's Price to Book (P/B) ratio as of the last twelve months ending Q1 2024 is 1.17, which can be appealing to value-oriented investors seeking assets at a price closer to their intrinsic value.
On the operational front, Civeo's gross profit margin is at 24.61%, which demonstrates the company's ability to retain a significant portion of its sales revenue after accounting for the cost of goods sold. This is a crucial indicator of the company's efficiency and pricing power.
InvestingPro Tips highlight that Civeo's valuation implies a strong free cash flow yield, which is an encouraging sign for investors looking for companies that can generate cash effectively. Moreover, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position that can reassure stakeholders of its ability to meet its immediate financial commitments.
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