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Item 1. Financial Statements

2025-07-29 compared with 2025-04-30 · 198 added, 87 removed, 380 unchanged (43% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Revenue $ 162,694 $ 188,713 $ 306,738 $ 354,833

4 unchanged sentences

Impairment expense — — — 7,823

Gain on sale of McClelland Lake Lodge assets, net — ( 6,075 )

(Gain) loss on sale of McClelland Lake Lodge assets, net 87 — ( 5,988 )

Other operating expense 66 188 573 486

159,894 175,601 309,454 343,502

Operating loss ( 5,516 ) ( 1,781 )

Operating income (loss) 2,800 13,112 ( 2,716 ) 11,331

Interest expense ( 2,699 ) ( 2,203 ) ( 4,318 ) ( 4,563 )

1 unchanged sentence

Other income 119 310 466 763

Loss before income taxes ( 6,762 ) ( 3,645 )

Income (loss) before income taxes 295 11,273 ( 6,467 ) 7,628

Income tax expense ( 3,606 ) ( 3,786 ) ( 6,694 ) ( 5,337 )

Net loss ( 9,850 ) ( 5,196 )

Net income (loss) ( 3,311 ) 7,487 ( 13,161 ) 2,291

Net income (loss) attributable to noncontrolling interest 3 ( 740 ) ( 5 ) ( 803 )

Net loss attributable to Civeo Corporation $ ( 9,842 ) $ ( 5,133 )

Net income (loss) attributable to Civeo Corporation $ ( 3,314 ) $ 8,227 $ ( 13,156 ) $ 3,094

Per Share Data (see Note 7)

Basic net loss per share attributable to Civeo Corporation common shareholders $ ( 0.72 ) $ ( 0.35 )

Diluted net loss per share attributable to Civeo Corporation common shareholders $ ( 0.72 ) $ ( 0.35 )

Basic net income (loss) per share attributable to Civeo Corporation common shareholders $ ( 0.25 ) $ 0.57 $ ( 0.98 ) $ 0.21

Diluted net income (loss) per share attributable to Civeo Corporation common shareholders $ ( 0.25 ) $ 0.56 $ ( 0.98 ) $ 0.21

Weighted average number of common shares outstanding:

7 unchanged sentences

Three Months Ended

Net loss $ ( 9,850 ) $ ( 5,196 )

June 30, Six Months Ended

2025 2024 2025 2024

Net income (loss) $ ( 3,311 ) $ 7,487 $ ( 13,161 ) $ 2,291

Other comprehensive income (loss), net of taxes:

2 unchanged sentences

Total other comprehensive income (loss), net of taxes 10,935 1,621 12,028 ( 8,610 )

Comprehensive loss ( 8,757 ) ( 15,427 )

Comprehensive loss attributable to noncontrolling interest ( 8 ) ( 132 )

Comprehensive loss attributable to Civeo Corporation $ ( 8,749 ) $ ( 15,295 )

Comprehensive income (loss) 7,624 9,108 ( 1,133 ) ( 6,319 )

Comprehensive income (loss) attributable to noncontrolling interest 4 ( 767 ) ( 4 ) ( 899 )

Comprehensive income (loss) attributable to Civeo Corporation $ 7,620 $ 9,875 $ ( 1,129 ) $ ( 5,420 )

The accompanying notes are an integral part of these financial statements.

2 unchanged sentences

(In Thousands, Excluding Share Amounts)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Current assets:

50 unchanged sentences

Shareholders’

Balance, December 31, 2023 $ — $ 1,628,972 $ ( 919,023 ) $ ( 9,063 ) $ ( 380,715 ) $ 2,867 $ 323,038

Net loss — — ( 5,133 ) — — ( 63 ) ( 5,196 )

Balance, March 31, 2024 $ — $ 1,629,521 $ ( 931,135 ) $ ( 10,130 ) $ ( 390,877 ) $ 2,731 $ 300,110

Net income (loss) — — 8,227 — — ( 740 ) 7,487

Currency translation adjustment — — — — 1,648 ( 27 ) 1,621

3 unchanged sentences

Share-based compensation — 609 — — — — 609

Balance, June 30, 2024 $ — $ 1,630,130 $ ( 933,346 ) $ ( 10,130 ) $ ( 389,229 ) $ 1,963 $ 299,388

Balance, March 31, 2025 $ — $ 1,632,420 $ ( 997,400 ) $ ( 10,775 ) $ ( 403,507 ) $ — $ 220,738

Net income (loss) — — ( 3,314 ) — — 3 ( 3,311 )

Currency translation adjustment — — — — 10,934 1 10,935

Dividends paid — — — — — ( 4 ) ( 4 )

Common shares repurchased — — ( 19,140 ) — — — ( 19,140 )

Excise tax on common shares repurchased — — ( 382 ) — — — ( 382 )

Share-based compensation — 602 — — — — 602

Balance, June 30, 2025 $ — $ 1,633,022 $ ( 1,020,236 ) $ ( 10,775 ) $ ( 392,573 ) $ — $ 209,438

Balance, December 31, 2023 $ — $ 1,628,972 $ ( 919,023 ) $ ( 9,063 ) $ ( 380,715 ) $ 2,867 $ 323,038

Net income (loss) — — 3,094 — — ( 803 ) 2,291

Currency translation adjustment — — — — ( 8,514 ) ( 96 ) ( 8,610 )

Dividends paid — — ( 7,368 ) — — ( 5 ) ( 7,373 )

Common shares repurchased — — ( 9,852 ) — — — ( 9,852 )

Excise tax on common shares repurchased — — ( 197 ) — — — ( 197 )

Share-based compensation — 1,158 — ( 1,067 ) — — 91

Balance, June 30, 2024 $ — $ 1,630,130 $ ( 933,346 ) $ ( 10,130 ) $ ( 389,229 ) $ 1,963 $ 299,388

Balance, December 31, 2024 $ — $ 1,631,823 $ ( 980,720 ) $ ( 10,130 ) $ ( 404,600 ) $ 625 $ 236,998

Net loss — — ( 13,156 ) — — ( 5 ) ( 13,161 )

4 unchanged sentences

Share-based compensation — 1,199 — ( 645 ) — — 554

Balance, March 31, 2025 $ — $ 1,632,420 $ ( 997,400 ) $ ( 10,775 ) $ ( 403,507 ) $ — $ 220,738

Balance, June 30, 2025 $ — $ 1,633,022 $ ( 1,020,236 ) $ ( 10,775 ) $ ( 392,573 ) $ — $ 209,438

Balance, December 31, 2024 13,654

1 unchanged sentence

Common shares repurchased ( 1,036 )

Balance, March 31, 2025 13,541

Balance, June 30, 2025 12,696

The accompanying notes are an integral part of these financial statements.

2 unchanged sentences

(In Thousands)

Three Months Ended

Six Months Ended

Cash flows from operating activities:

Net loss $ ( 9,850 ) $ ( 5,196 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss) $ ( 13,161 ) $ 2,291

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:

Depreciation and amortization 34,080 33,829

3 unchanged sentences

Gains on disposals of assets ( 261 ) ( 6,104 )

Provision for credit losses, net of recoveries ( 20 ) 4

Provision (benefit) for credit losses, net of recoveries ( 9 ) 34

Other, net 581 1,257

8 unchanged sentences

Capital expenditures ( 9,769 ) ( 10,929 )

Payments related to acquisitions ( 64,948 ) —

Proceeds from dispositions of property, plant and equipment 273 10,617

Other, net — 183

Net cash flows provided by (used in) investing activities ( 5,104 ) 1,165

Net cash flows used in investing activities ( 74,444 ) ( 129 )

Cash flows from financing activities:

5 unchanged sentences

Taxes paid on vested shares ( 645 ) ( 1,067 )

Net cash flows provided by financing activities 36,625 6,614

Net cash flows provided by (used in) financing activities 92,244 ( 34,112 )

Effect of exchange rate changes on cash 2,392 10

16 unchanged sentences

(i) all references in these consolidated financial statements to “Civeo,” “us,” “our” or “we” refer to Civeo Corporation and its consolidated subsidiaries;

and (ii) all references in this report to “dollars” or “$” are to U.S.

and (ii) all references in this report to “dollars” or “$” are to United States (U.S.) dollars.

Certain reclassifications have been made to the prior year financial statements for them to conform with the 2025 presentation.

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2025 2024 2025 2024

Accommodation revenues $ 52,682 $ 48,914 $ 99,505 $ 96,021

12 unchanged sentences

We do not have significant financing components or significant payment terms.

As of March 31, 2025, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue.

As of June 30, 2025, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue.

The table only includes revenue expected to be recognized from contracts where the quantity of service is certain (in thousands):

1 unchanged sentence

2025 2026 2027 Thereafter Total

Revenue expected to be recognized as of March 31, 2025 $ 110,268 $ 115,427 $ 86,891 $ 206,481 $ 519,066

Revenue expected to be recognized as of June 30, 2025 $ 107,593 $ 178,520 $ 141,889 $ 282,781 $ 710,783

We applied the practical expedient and do not disclose consideration for remaining performance obligations with an original expected duration of one year or less.

2 unchanged sentences

IMPAIRMENT CHARGES

No impairment expense was recorded during the first quarter of 2025.

No impairment expense was recorded during the first or second quarters of 2025.

The following summarizes pre-tax impairment charges recorded during 2024, which are included in Impairment expense in our consolidated statements of operations (in thousands):

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

Australia U.S.

2 unchanged sentences

Total $ 5,749 $ 2,074 $ 7,823

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

Quarter ended March 31, 2024 .

7 unchanged sentences

We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.

As of March 31, 2025 and December 31, 2024, we believe the carrying value of our floating-rate debt outstanding under our revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment.

As of June 30, 2025 and December 31, 2024, we believe the carrying value of our floating-rate debt outstanding under our revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment.

We estimated the fair value of our floating-rate revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans.

During the second quarter of 2025, we acquired accommodation assets, land and customer contracts and recorded them at fair value.

Determining the fair value of assets acquired and liabilities assumed required the exercise of judgment, which included the use of a multi-period excess earnings income approach to determine the fair value of the customer relationships.

Specifically, the fair value of the customer relationships was determined by calculating the present value of expected cash flows by applying a discount rate that represents the estimated rate that market participants would require for such intangible assets.

The expected cash flows and related discount rate are significant unobservable inputs categorized within Level 3 of the fair value hierarchy.

The cash flows employed in the valuation are based on our best estimates of future sales, earnings and cash flows after considering factors such as general market conditions, expected future customer orders, contracts with suppliers, labor costs, changes in working capital, long-term business plans and recent operating performance.

During the first quarter of 2024, we wrote down certain long-lived assets to fair value.

1 unchanged sentence

DETAILS OF SELECTED BALANCE SHEET ACCOUNTS

Additional information regarding selected balance sheet accounts at March 31, 2025 and December 31, 2024 is presented below (in thousands):

March 31, 2025 December 31, 2024

Additional information regarding selected balance sheet accounts at June 30, 2025 and December 31, 2024 is presented below (in thousands):

June 30, 2025 December 31, 2024

Accounts receivable, net:

5 unchanged sentences

Total accounts receivable, net $ 104,491 $ 89,038

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Finished goods, including purchased food, housekeeping and retail inventory $ 4,240 $ 6,134

4 unchanged sentences

FINANCIAL STATEMENTS

(in years) March 31, 2025 December 31, 2024

(in years) June 30, 2025 December 31, 2024

Property, plant and equipment, net:

9 unchanged sentences

Total property, plant and equipment, net $ 265,138 $ 204,897

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Accrued liabilities:

3 unchanged sentences

Total accrued liabilities $ 39,403 $ 34,933

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Contract liabilities (Deferred revenue):

5 unchanged sentences

Deferred revenue typically consists of upfront payments received before we satisfy the associated performance obligation.

The decrease in deferred revenue from December 31, 2024 to March 31, 2025 was due to revenue recognized over the contracted terms related to advance payments received from a customer for village enhancements in Australia.

The decrease in deferred revenue from December 31, 2024 to June 30, 2025 was due to revenue recognized over the contracted terms related to advance payments received from a customer for village enhancements in Australia .

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

ASSET ACQUISITION

On May 6, 2025, we acquired the assets of Qantac Pty Ltd (Qantac), located in Queensland, Australia (the Qantac Acquisition) for total consideration of A$ 105 million (or approximately US$ 68 million) in cash.

The Qantac Acquisition included four villages, with 1,340 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts.

As a result of the Qantac Acquisition, we expanded our existing accommodations business into the Blackwater region of the Bowen Basin, which was not previously served by our existing villages.

The Qantac Acquisition was funded with cash on hand and borrowings under the Amended Credit Agreement (as defined in Note 8).

Qantac’s operations are reported as new village locations in our Australia reportable business segment.

The Qantac Acquisition was accounted for as an asset acquisition based on the principles described in ASC 805, which provides a screen to determine when a set of transferred assets is not a business.

The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similarly identifiable assets, the set of transferred assets is not a business.

Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of such acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed.

Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired.

Goodwill is not recognized in an asset acquisition, and any difference between consideration transferred and the fair value of the net assets acquired is allocated to the certain identifiable assets acquired based on their relative fair values.

The purchase price was allocated to the net assets as follows (in thousands):

Consideration:

Cash $ 68,189

Direct transaction costs 4,601

Total costs of the asset acquisition $ 72,790

Other current assets $ 184

Property, plant and equipment 70,575

Intangible assets 5,999

Total assets acquired 76,758

Accounts payable and accrued liabilities 67

Deferred income taxes 3,901

Total liabilities assumed 3,968

Net assets acquired $ 72,790

EARNINGS PER SHARE

5 unchanged sentences

The calculation of basic and diluted earnings per share attributable to Civeo common shareholders is presented below for the periods indicated (in thousands, except per share amounts):

Three Months Ended March 31,

Basic net loss attributable to Civeo Corporation $ ( 9,842 ) $ ( 5,133 )

Diluted net loss attributable to Civeo Corporation $ ( 9,842 ) $ ( 5,133 )

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Basic net income (loss) attributable to Civeo Corporation $ ( 3,314 ) $ 8,227 $ ( 13,156 ) $ 3,094

Diluted net income (loss) attributable to Civeo Corporation $ ( 3,314 ) $ 8,227 $ ( 13,156 ) $ 3,094

Weighted average shares outstanding - basic 13,177 14,518 13,387 14,586

1 unchanged sentence

Weighted average shares outstanding - diluted 13,177 14,600 13,387 14,678

Basic net loss per share attributable to Civeo Corporation common shareholders (1)

Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1)

$ ( 0.25 ) $ 0.57 $ ( 0.98 ) $ 0.21

Diluted net loss per share attributable to Civeo Corporation common shareholders (1)

Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)

$ ( 0.25 ) $ 0.56 $ ( 0.98 ) $ 0.21

(1) Computations may reflect rounding adjustments.

Share-based awards excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive totaled 0.1 million shares and 0.1 million shares, respectively, for the three months ended March 31, 2025 and 2024.

Share-based awards that have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive totaled 0.1 million shares and zero shares, respectively, for the three months ended June 30, 2025 and 2024.

Share-based awards that have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive totaled 0.1 million shares and fewer than 0.1 million shares, respectively, for the six months ended June 30, 2025 and 2024.

CIVEO CORPORATION

1 unchanged sentence

FINANCIAL STATEMENTS

As of March 31, 2025 and December 31, 2024, long-term debt consisted of the following (in thousands):

March 31, 2025 December 31, 2024

As of June 30, 2025 and December 31, 2024, long-term debt consisted of the following (in thousands):

June 30, 2025 December 31, 2024

revolving credit facility;

weighted average interest rate of 9.0 % for the three month period ended March 31, 2025

weighted average interest rate of 9.0 % for the six month period ended June 30, 2025

Canadian revolving credit facility;

weighted average interest rate of 6.0 % for the three month period ended March 31, 2025

weighted average interest rate of 5.9 % for the six month period ended June 30, 2025

119,480 43,299

Australian revolving credit facility;

weighted average interest rate of 6.8 % for the three month period ended March 31, 2025

weighted average interest rate of 6.6 % for the six month period ended June 30, 2025

Total debt $ 168,672 $ 43,299

1 unchanged sentence

On March 24, 2025, we amended our Syndicated Facility Agreement (as amended to date, the Amended Credit Agreement), to increase the Australian revolving commitments by $ 20.0 million to an aggregate amount of $ 55.0 million.

As of March 31, 2025, the Amended Credit Agreement provided for a $ 265.0 million revolving credit facility scheduled to mature on August 8, 2028, allocated as follows:

As of June 30, 2025, the Amended Credit Agreement provided for a $ 265.0 million revolving credit facility scheduled to mature on August 8, 2028, allocated as follows:

(A) a $ 10.0 million senior secured revolving credit facility in favor of certain of our U.S.

17 unchanged sentences

EBITDA and consolidated interest, as defined, exclude goodwill and asset impairments, debt discount amortization, amortization of intangibles and other non-cash charges.

We were in compliance with our covenants as of March 31, 2025.

We were in compliance with our covenants as of June 30, 2025.

Borrowings under the Amended Credit Agreement are secured by a pledge of substantially all of our assets and the assets of our subsidiaries subject to customary exceptions.

The obligations under the Amended Credit Agreement are guaranteed by our significant subsidiaries.

As of March 31, 2025, we had six lenders that were parties to the Amended Credit Agreement, with total revolving commitments ranging from $ 35.0 million to $ 60.0 million.

As of March 31, 2025, we had outstanding letters of credit of zero under the U.S.

As of June 30, 2025, we had six lenders that were parties to the Amended Credit Agreement, with total revolving commitments ranging from $ 35.0 million to $ 60.0 million.

As of June 30, 2025, we had outstanding letters of credit of zero under the U.S.

facility, zero under the Australian facility and $ 0.9 million under the Canadian facility.

10 unchanged sentences

still uncertain to date.

The applicable tax law changes with respect to Pillar Two have been considered for the jurisdictions in which we operate, and we do not anticipate the Pillar Two rules to have a materially adverse impact on our financial results.

The applicable tax law changes with respect to Pillar Two were considered for the jurisdictions in which we operate, and the rules did not have a materially adverse impact on our financial results.

We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions.

Income taxes for any significant and unusual or extraordinary transactions are computed and recorded in the period in which the specific transaction occurs.

As of March 31, 2025 and 2024, Canada and the U.S.

As of June 30, 2025 and 2024, Canada and the U.S.

were considered loss jurisdictions for tax accounting purposes and were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.

Our income tax expense for the three months ended March 31, 2025 totaled $ 3.1 million, or ( 45.7 )% of pretax loss, compared to income tax expense of $ 1.6 million, or ( 42.6 )% of pretax loss, for the three months ended March 31, 2024.

Our effective tax rate for the three months ended March 31, 2025 and 2024 was impacted by Canada and the U.S.

Our income tax expense for the three months ended June 30, 2025 totaled $ 3.6 million, or 1222.4 % of pretax income, compared to income tax expense of $ 3.8 million, or 33.6 % of pretax income, for the three months ended June 30, 2024.

Our effective tax rate for the three months ended June 30, 2025 and 2024 was impacted by Canada and the U.S.

being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.

Our income tax expense for the six months ended June 30, 2025 totaled $ 6.7 million, or ( 103.5 )% of pretax loss, compared to income tax expense of $ 5.3 million, or 70.0 % of pretax income, for the six months ended June 30, 2024.

Our effective tax rate for the six months ended June 30, 2025 and 2024 was impacted by Canada and the U.S.

being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.

COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE LOSS

Our accumulated other comprehensive loss decreased $ 1.1 million from $ 404.6 million at December 31, 2024 to $ 403.5 million at March 31, 2025, as a result of foreign currency exchange rate fluctuations.

Changes in other comprehensive loss during the three months of 2025 were primarily driven by the Australian dollar and Canadian dollar increasing in value compared to the U.S.

Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets totaled approximately C$ 106 million and A$ 228 million, respectively, at March 31, 2025.

Our accumulated other comprehensive loss decreased $ 12.0 million from $ 404.6 million at December 31, 2024 to $ 392.6 million at June 30, 2025, as a result of foreign currency exchange rate fluctuations.

Changes in other comprehensive loss during the six months of 2025 were primarily driven by the Australian dollar and Canadian dollar increasing in value compared to the U.S.

Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets totaled approximately C$ 74 million and A$ 234 million, respectively, at June 30, 2025.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

SHARE REPURCHASE PROGRAMS AND DIVIDENDS

Share Repurchase Programs

In March 2025 and September 2024, our Board of Directors (Board) authorized the repurchase of up to 10.0 % and 5.0 % of our total common shares which were issued and outstanding, or approximately 1,351,000 and 711,000 common shares, respectively, over a twelve month period.

In September 2024, our Board of Directors (Board) authorized a common share repurchase program (the Share Repurchase Program) to repurchase of up to 5.0 % of our total common shares which were issued and outstanding at that date, or approximately 0.7 million common shares over a twelve month period.

In March 2025, our Board authorized an increase to the Share Repurchase Program to repurchase up to 10.0 % of our total common shares which are issued and outstanding at that date, or approximately 1.4 million common shares, and in April 2025, our Board authorized a further increase to repurchase up to 20.0 % of our total common shares which are issued and outstanding at that date, or approximately 2.7 million common shares.

The repurchase authorization allows repurchases from time to time through a variety of methods, including but not limited to open market repurchases, pursuant to a Rule 10b5-1 compliant plan, or privately negotiated transactions.

1 unchanged sentence

Any common shares repurchased are cancelled in the periods they are acquired and the payment is accounted for as an increase to accumulated deficit in our Unaudited Consolidated Statements of Changes in Shareholders’ Equity in the period the payment is made.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

The following table summarizes our common share repurchases for the periods presented (in thousands, except per share data):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Dollar-value of shares repurchased $ 19,140 $ 6,644 $ 22,474 $ 9,852

1 unchanged sentence

Average price paid per share $ 21.64 $ 24.21 $ 21.65 $ 24.17

Our Board declared the following quarterly dividends for the three months ended March 31, 2025 and 2024.

Our Board declared the following quarterly dividends for the six months ended June 30, 2025 and 2024.

The dividends are eligible dividends pursuant to the Income Tax Act (Canada).

In April 2025, we announced the suspension by our Board of quarterly dividends on our common shares to prioritize returning capital to our shareholders through ongoing share repurchases.

Date Declared Record Date Payment Date Per Share Amount

January 31, 2025 February 24, 2025 March 17, 2025 $ 0.25

April 26, 2024 May 27, 2024 June 17, 2024 $ 0.25

February 2, 2024 February 26, 2024 March 18, 2024 $ 0.25

8 unchanged sentences

Phantom share units are settled in cash upon vesting.

During the three months ended March 31, 2025 and 2024, we recognized compensation expense associated with phantom share units totaling $ 1.8 million and $ 1.3 million, respectively.

At March 31, 2025, unrecognized compensation cost related to phantom share units was $ 10.8 million, as remeasured at March 31, 2025, which is expected to be recognized over a weighted average period of 2.3 years.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

During the three months ended June 30, 2025 and 2024, we recognized compensation expense associated with phantom share units totaling $ 1.5 million and $ 1.6 million, respectively.

During the six months ended June 30, 2025 and 2024, we recognized compensation expense associated with phantom share units totaling $ 3.3 million and $ 2.9 million, respectively.

At June 30, 2025, unrecognized compensation cost related to phantom share units was $ 9.3 million, as remeasured at June 30, 2025, which is expected to be recognized over a weighted average period of 2.1 years.

Performance Share Awards.

4 unchanged sentences

No share-based compensation expense is recognized if the performance criteria are not probable of being achieved.

During the three months ended March 31, 2025 and 2024, we recognized compensation expense associated with performance share awards totaling $ 0.3 million and $ 0.3 million, respectively.

The total fair value of performance share awards that vested during the three months ended March 31, 2025 and 2024 was $ 1.7 million and $ 2.8 million, respectively.

At March 31, 2025, unrecognized compensation cost related to performance share awards was $ 2.7 million, which is expected to be recognized over a weighted average period of 2.1 years.

During the three months ended June 30, 2025 and 2024, we recognized compensation expense associated with performance share awards totaling $ 0.3 million and $ 0.3 million, respectively.

During the six months ended June 30, 2025 and 2024, we recognized compensation expense associated with performance share awards totaling $ 0.7 million and $ 0.6 million, respectively.

No performance share awards vested during the three months ended June 30, 2025 and 2024.

The total fair value of performance share awards that vested during the six months ended June 30, 2025 and 2024 was $ 1.7 million and $ 2.8 million, respectively.

At June 30, 2025, unrecognized compensation cost related to performance share awards was $ 2.2 million, which is expected to be recognized over a weighted average period of 1.9 years.

Restricted Share Awards / Restricted Share Units / Deferred Share Awards.

On May 14, 2025, we granted 50,215 restricted share and deferred share awards to our non-employee directors, which vest in their entirety in May 2026.

Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the three months ended June 30, 2025 and 2024 totaled $ 0.3 million and $ 0.3 million, respectively.

Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the six months ended June 30, 2025 and 2024 totaled $ 0.5 million and $ 0.5 million, respectively.

The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the three and six months ended June 30, 2025 and 2024 was $ 0.9 million and $ 1.2 million, respectively.

At June 30, 2025, unrecognized compensation cost related to restricted share awards, restricted share units and deferred share awards was $ 0.9 million, which is expected to be recognized over a weighted average period of 0.9 years.

CIVEO CORPORATION

1 unchanged sentence

FINANCIAL STATEMENTS

Restricted Share Awards / Restricted Share Units / Deferred Share Awards.

Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the three months ended March 31, 2025 and 2024 totaled $ 0.3 million and $ 0.3 million, respectively.

The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the three months ended March 31, 2025 and 2024 was zero .

At March 31, 2025, unrecognized compensation cost related to restricted share awards, restricted share units and deferred share awards was $ 0.1 million, which is expected to be recognized over a weighted average period of 0.1 years.

SEGMENT AND RELATED INFORMATION

1 unchanged sentence

The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

Our Chief Executive Officer is the chief operation decision maker.

We have identified two reportable segments, Australia and Canada, which represent our strategic focus on hospitality services and workforce accommodations.

1 unchanged sentence

To better align segment operating income (loss) to the profitability measure used by our chief operating decision maker, we have excluded this allocation.

Prior periods have been updated to be consistent with the presentation for the three months ended March 31, 2025.

Financial information by business segment for each of the three months ended March 31, 2025 and 2024 is summarized in the following table (in thousands):

Three months ended March 31, 2025 Australia Canada Corporate, other and eliminations Total

Prior periods have been updated to be consistent with the presentation for the three and six months ended June 30, 2025.

Financial information by business segment for each of the three and six months ended June 30, 2025 and 2024 is summarized in the following table (in thousands):

Three Months Ended June 30, 2025 Australia Canada Corporate, other and eliminations Total

Revenues $ 112,672 $ 50,022 $ — $ 162,694

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Selling, general and administrative expenses (1)

6,716 4,128 9,626 20,470

Depreciation and amortization expense 9,050 8,751 26 17,827

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Reconciliation to income (loss) before income taxes

Other income (loss) (2)

Income (loss) before income taxes $ ( 6,762 )

Other loss (3)

Income before income taxes $ 295

Capital expenditures $ 3,451 $ 1,047 $ — $ 4,498

3 unchanged sentences

FINANCIAL STATEMENTS

Three months ended March 31, 2024 Australia Canada Corporate, other and eliminations Total

Three Months Ended June 30, 2024 Australia Canada Corporate, other and eliminations Total

Revenues $ 108,608 $ 79,527 $ 578 $ 188,713

2 unchanged sentences

Selling, general and administrative expenses (1)

5,956 4,467 7,010 17,433

Depreciation and amortization expense 7,695 9,252 112 17,059

Other operating expense (income) (1)

Other operating expense (2)

64 105 106 275

1 unchanged sentence

Reconciliation to income (loss) before income taxes

Other income (loss) (2)

Income (loss) before income taxes $ ( 3,645 )

Other loss (3)

Income before income taxes $ 11,273

Capital expenditures $ 3,652 $ 1,647 $ 17 $ 5,316

Total assets $ 207,465 $ 737,275 $ ( 461,506 ) $ 483,234

(1) Other operating expense (income) for each reportable segment primarily includes other operating expenses for the three months ended March 31, 2025 and 2024.

In addition, for the three months ended March 31, 2024, other operating expense (income) includes impairment expense in Canada and the U.S.

and Canada includes gain on sale of McClelland Lake Lodge assets, net.

Six Months Ended June 30, 2025 Australia Canada Corporate, other and eliminations Total

Revenues $ 216,318 $ 90,420 $ — $ 306,738

Cost of sales and services 159,197 76,682 267 236,146

Revenues less cost of sales and services 57,121 13,738 ( 267 ) 70,592

Selling, general and administrative expenses (1)

13,124 8,429 17,102 38,655

Depreciation and amortization expense 16,854 17,171 55 34,080

Other operating expense (income) (2)

( 69 ) 82 560 573

Operating income (loss) 27,212 ( 11,944 ) ( 17,984 ) ( 2,716 )

Recon to income (loss) before income taxes

Other loss (3)

Loss before income taxes $ ( 6,467 )

Capital expenditures $ 5,396 $ 4,373 $ — $ 9,769

Total assets $ 276,623 $ 681,264 $ ( 449,048 ) $ 508,839

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

Six Months Ended June 30, 2024 Australia Canada Corporate, other and eliminations Total

Revenues $ 200,345 $ 146,687 $ 7,801 $ 354,833

Cost of sales and services 147,150 116,106 8,023 271,279

Revenues less cost of sales and services 53,195 30,581 ( 222 ) 83,554

Selling, general and administrative expenses (1)

11,268 9,336 15,469 36,073

Depreciation and amortization expense 14,932 18,648 249 33,829

Other operating expense (income) (2)

5,851 ( 5,962 ) 2,432 2,321

Operating income (loss) 21,144 8,559 ( 18,372 ) 11,331

Recon to income (loss) before income taxes

Other loss (3)

Income before income taxes $ 7,628

Capital expenditures $ 8,170 $ 2,742 $ 17 $ 10,929

Total assets $ 207,465 $ 737,275 $ ( 461,506 ) $ 483,234

(1) Corporate, other and eliminations SG&A expense includes corporate information technology (IT) expenses managed on a worldwide basis that are not allocated to individual segments in Australia and Canada.

During the three months ended June 30, 2025 and 2024, we recognized IT expenses at corporate not allocated of $ 2.0 million and $ 2.4 million, respectively.

During the six months ended June 30, 2025 and 2024, we recognized IT expenses at corporate not allocated of $ 4.0 million and $ 4.6 million, respectively.

(2) Other operating expense (income) for each reportable segment primarily includes other operating expenses for the three and six months ended June 30, 2025 and 2024.

In addition, for the three and six months ended June 30, 2024, other operating expense (income) includes impairment expense in Canada and the U.S.

and gain on sale of McClelland Lake Lodge assets, net, in Canada.

(3) Other income (loss) is primarily related to interest expense, interest income and other income.

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The forward-looking statements can be identified by the use of forward-looking terminology including “may,” “expect,” “anticipate,” “estimate,” “continue,” “believe” or other similar words.

The forward-looking statements in this report include, but are not limited to, the statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” relating to our expectations about the macroeconomic environment and industry conditions, including the volatility in the price of and demand for commodities, as well as our expectations about capital expenditures in 2025, beliefs with respect to liquidity needs and expectations with respect to growth strategies and opportunities, share repurchases and dividends and anticipated benefits of our pending acquisition of four villages in Australia's Bowen Basin.

Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors.

9 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements