Civeo was awarded a five-year contract with an undisclosed metallurgical coal producer to provide rooms and hospitality services in Australia.
The contract is an expansion of Civeo’s relationship with the customer to add accommodation requirements at its Moranbah village and to increase total minimum room commitment. Previously, services were only provided at Civeo’s Coppabella and Dysart villages.
The contract has a five-year term and is expected to generate approximately A$337 million in total revenues from 2023 to 2027.
“This contract award underscores the strength of Civeo’s customer relationships and the high quality of our accommodations and hospitality services. We are encouraged by our customer’s decision to commit to our facilities for another five years and expand our longstanding relationship,” said Bradley Dodson, Civeo president and CEO.
“We are also broadly encouraged that our customers continue to maintain high activity levels in Australia in a favorable commodity price environment. We expect this trend to continue in 2023.”