FollowCiveo Corp is known to provide their miners and workers a temporary housing. Now, this company cut the number of its workforce last Monday. The company also stated that its revenue could decrease by a third as the decline in crude oil prices pushes the producers of oil to minimize their costs.
The warning given by Civeo Corp regarding their shaky revenue added more nervousness to the global oil market. The warning also gave emphasis on Australia’s coal industry’s weakness. The coal industry in Australia is known to be among the biggest markets catered by Civeo. It has been worn out by the low international demand for steel.
As a response to the declining crude oil prices, Civeo Corp has recently suspended the company’s quarterly dividend and reduced its total US workforce by 45 percent and its total Canada workforce by 30 percent. The United States is known to be Civeo’s smallest market. On the other hand, Canada is Civeo’s second largest market.
The shares of the company fell by as much as 30 percent in the extended trading. Given that the company started to cut costs, it is now expecting a total revenue of $175 million from $160 million for this fiscal year’s first quarter ending on the month of March 2015. However, the analysts anticipate a total of $228 million.
