By Chris Lange December 30, 2014 12:20 pm EST
Print Email
inShare

Civeo Corp. (NYSE: CVEO) has announced that due to the fall in oil prices it has cut its 2015 guidance and suspended its dividend. The company also stated late Monday that major oil companies were cutting their capital budgets for the following year due to falling oil prices.

A little background on Civeo: The company provides workforce accommodations for workers in oil fields and other locales. The company services the Canadian oil sands and Australian mining and natural resource regions. Ideally, this company could be seen as a barometer at these locations of how the oil market is faring.

The company had paid a $0.13 per share quarterly cash dividend, but looking ahead, Civeo suspended its dividend to give the company more financial flexibility. Adding more to the woes, Civeo forecast that revenue could fall by as much as one-third if oil prices remain where they are.

Going into 2015, Civeo has roughly 35% to 40% of its lodge rooms contracted in Canada, which is down more than 75% from the beginning of 2014. As a result the company reduced its headcount in Canadian operations by 30% year-over-year.

Civeo expects 2015 capital expenditures to be in the range of $75 million to $85 million, which is a massive reduction from 2014 estimated capital expenditures of $260 million to $280 million.

Read more: Civeo Cuts 2015 Guidance, Suspends Dividend Due to Low Oil Prices (NYSE: CVEO) - 24/7 Wall St. http://247wallst.com/energy-business/2014/12/30/can-civeo-weather-the-storm-of-low-oil/#ixzz3NTwbH0ZA
Follow us: @247wallst on Twitter ' 247wallst on Facebook