Civeo (CVEO) Stock Tanks Today on Downgraded 2015 Outlook

NEW YORK (TheStreet) -- Civeo (CVEO) shares are down 43.4% to $4.68 in early market trading on Tuesday after the provider of accommodations for oil and gas project workers said that falling oil prices would negatively impact its earnings in 2015. The company also suspended its dividend.

Civeo said that slowing construction in Canada and Australia due to falling crude prices would cause its clients to spend less on oil exploration projects and in turn hurt Civeo's bottom line.

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Civeo provided 2015 EBITDA guidance between $135 million and $160 million on revenue between $540 million and $600 million. Analysts are expecting 2015 EBITDA of $262 million on revenue of $817.2 million for the year.

The company also now expects 2015 capital expenditures between $75 million and $85 million, significantly lower than the estimated $260 million to $280 million the company spent in 2014.

Additionally, the company said that its board unanimously voted to suspend its quarterly dividend of 13 cents per diluted share, which it paid earlier this month, indefinitely to offer the company greater financial flexibility.

 

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