Civeo (NYSE: CVEO) reported Q2 EPS of $0.03, $0.13 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $114.7 million versus the consensus estimate of $89.2 million.

Highlights include:

• Reported second quarter revenues of $114.7 million, net income of $6.1 million and operating cash flow of $24.5 million;
• Delivered second quarter Adjusted EBITDA of $28.1 million and free cash flow of $25.1 million; and
• Reduced leverage ratio to 2.34x as of June 30, 2020 from 2.54x as of March 31, 2020.

“I am pleased with the financial performance of the Company in the second quarter given this environment, but I am most proud of our team’s safety performance during this challenging time. Their efforts to keep each other and our guests safe and our locations open are a testament to Civeo's core values. As we are all still working hard to navigate the COVID-19 pandemic, I want to once again thank our employees for their commitment and focus during this difficult time. I am proud of how our team has handled this pandemic and we have received extremely positive feedback from our customers and other stakeholders. We are continuing to closely monitor the COVID-19 situation and follow our stringent safety protocols,“ stated Bradley J. Dodson, Civeo's President and Chief Executive Officer.

Mr. Dodson continued, “Civeo’s second quarter financial performance underscores 1) our team’s ability to execute quickly and respond to difficult market conditions; 2) our strong customer relationships and contracts; and 3) the benefits of the Company’s diversified geographic and commodity end-market footprint. While keeping our customers and guests safe, we were able to address our cost structure quickly in North America as occupancy and activity decreased swiftly in March and April. With a strong market position in Canada, we were able to capture the majority of the occupancy in our target markets, allowing us to generate positive operational contributions. Our differentiating exposure to the Australian natural resources industry also benefited the company as occupancy and profitability continued to improve in that region. The second quarter’s solid performance was highlighted by a 44% year-over-year increase in our Australian segment’s Adjusted EBITDA. In total, despite the significant decline in oil prices and related decline in Canadian occupancy, we continued to generate strong free cash flow and reduce our leverage ratio."

Mr. Dodson concluded, "Looking forward, we expect occupancy in Canada to improve modestly in the second half of 2020 compared to the second quarter run rate, and we expect continued strength in our Australian operations. Overall our focus remains the same: continue to operate safely, maximize cash flow generation and reduce debt."

For earnings history and earnings-related data on Civeo (CVEO) click here.