Oil services company Civeo will stop its dividend payments.
Civeo's board of directors, upon the unanimous recommendation of the value creation committee of the board, has unanimously determined to suspend the company's quarterly dividend in order to maintain the company's financial flexibility and best position Civeo for long-term success. Civeo's board regularly reviews the company's operations and capital allocation priorities. In light of the company's revised outlook and expected refinancing of its credit facility in connection with the previously announced migration, the company anticipates that excess cash flow and its existing cash balances may be used to reduce indebtedness in 2015. Until such time as industry conditions and the company's performance and outlook improve, Civeo's board of directors intends to take such actions with respect to the dividend and other forms of returning capital to shareholders as are prudent and necessary to assure the company's financial strength and competitive standing in each of its markets.
Civeo Corporation is a leading provider of workforce accommodations with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations and provides catering, facility management, water systems and logistics services. Civeo currently owns a total of seventeen lodges and villages in operation in Canada and Australia, with an aggregate of more than 22,000 rooms. Civeo is publicly traded under the symbol "CVEO" on the NYSE .
Source: Civeo website
Prior to today's dividend news Civeo had paid two quartery dividends of $0.13 in 2014.
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