
			Page No.
Part I -- FINANCIAL INFORMATION

Item 1. Financial Statements:

Consolidated Financial Statements
Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, ~~2021~~2022 and ~~2020~~2021			4
Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, ~~2021~~2022 and ~~2020~~2021			5
Consolidated Balance Sheets – as of June 30, ~~2021~~2022 (unaudited) and December 31, ~~2020~~2021			6
Unaudited Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, ~~2021~~2022 and ~~2020~~2021			7
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, ~~2021~~2022 and ~~2020~~2021			8
Notes to Unaudited Consolidated Financial Statements			9

Cautionary Statement Regarding Forward-Looking Statements			19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 3. Quantitative and Qualitative Disclosures About Market Risk			36

Item 4. Controls and Procedures			36


Part II -- OTHER INFORMATION

Item 1. Legal Proceedings			37

Item 1A. Risk Factors			37

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37

Item 6. Exhibits			38

(a) Index of Exhibits			38

Signature Page			39


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Revenues:	Revenues:									Revenues:
Service and other	Service and other	$	147,784	$	110,006	$	269,780	$	239,405	Service and other	$	177,254	$	147,784	$	336,824	$	269,780
Rental	Rental	4,540		3,865		7,604		10,044		Rental	7,035		4,540		12,295		7,604
Product	Product	1,852		831		2,222		4,045		Product	665		1,852		1,513		2,222
		154,176		114,702		279,606		253,494			184,954		154,176		350,632		279,606
Costs and expenses:	Costs and expenses:									Costs and expenses:
Service and other costs	Service and other costs	103,449		78,860		199,911		174,904		Service and other costs	124,318		103,449		245,168		199,911
Rental costs	Rental costs	3,661		3,615		6,631		8,428		Rental costs	5,414		3,661		9,806		6,631
Product costs	Product costs	892		658		1,270		3,114		Product costs	321		892		922		1,270
Selling, general and administrative expenses	Selling, general and administrative expenses	14,703		11,490		28,884		25,427		Selling, general and administrative expenses	17,682		14,703		32,895		28,884
Depreciation and amortization expense	Depreciation and amortization expense	21,377		22,205		42,646		47,707		Depreciation and amortization expense	23,083		21,377		43,210		42,646
Impairment expense	Impairment expense	7,935		0		7,935		144,120		Impairment expense	—		7,935		—		7,935
Other operating expense (income)		30		(285)		101		704
Other operating (income) expense										Other operating (income) expense	(106)		30		152		101
		152,047		116,543		287,378		404,404			170,712		152,047		332,153		287,378
Operating income (loss)	Operating income (loss)	2,129		(1,841)		(7,772)		(150,910)		Operating income (loss)	14,242		2,129		18,479		(7,772)

Interest expense	Interest expense	(3,401)		(3,854)		(6,763)		(9,449)		Interest expense	(2,608)		(3,401)		(5,076)		(6,763)

Interest income	Interest income	2		4		2		20		Interest income	2		2		2		2
Other income	Other income	788		12,642		5,702		12,667		Other income	415		788		2,111		5,702
(Loss) income before income taxes		(482)		6,951		(8,831)		(147,672)
Income tax benefit (expense)		492		(122)		(584)		8,689
Income (loss) before income taxes										Income (loss) before income taxes	12,051		(482)		15,516		(8,831)
Income tax (expense) benefit										Income tax (expense) benefit	(1,821)		492		(3,378)		(584)
Net income (loss)	Net income (loss)	10		6,829		(9,415)		(138,983)		Net income (loss)	10,230		10		12,138		(9,415)
Less: Net income attributable to noncontrolling interest		(3)		222		56		480
Less: Net income (loss) attributable to noncontrolling interest										Less: Net income (loss) attributable to noncontrolling interest	662		(3)		1,160		56
Net income (loss) attributable to Civeo Corporation	Net income (loss) attributable to Civeo Corporation	13		6,607		(9,471)		(139,463)		Net income (loss) attributable to Civeo Corporation	9,568		13		10,978		(9,471)
Less: Dividends attributable to Class A preferred shares	Less: Dividends attributable to Class A preferred shares	480		471		958		939		Less: Dividends attributable to Class A preferred shares	490		480		977		958
Net (loss) income attributable to Civeo common shareholders		$	(467)	$	6,136	$	(10,429)	$	(140,402)
Net income (loss) attributable to Civeo common shareholders										Net income (loss) attributable to Civeo common shareholders	$	9,078	$	(467)	$	10,001	$	(10,429)

Per Share Data (see Note 7) ~~(1)~~	Per Share Data (see Note 7) ~~(1)~~									Per Share Data (see Note 7) ~~(1)~~
Basic net (loss) income per share attributable to Civeo Corporation common shareholders		$	(0.03)	$	0.37	$	(0.73)	$	(9.96)
Basic net income (loss) per share attributable to Civeo Corporation common shareholders										Basic net income (loss) per share attributable to Civeo Corporation common shareholders	$	0.55	$	(0.03)	$	0.60	$	(0.73)

Diluted net (loss) income per share attributable to Civeo Corporation common shareholders		$	(0.03)	$	0.37	$	(0.73)	$	(9.96)
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders										Diluted net income (loss) per share attributable to Civeo Corporation common shareholders	$	0.54	$	(0.03)	$	0.60	$	(0.73)

Weighted average number of common shares outstanding:	Weighted average number of common shares outstanding:									Weighted average number of common shares outstanding:
Basic	Basic	14,278		14,151		14,244		14,097		Basic	14,148		14,278		14,122		14,244
Diluted	Diluted	14,278		14,166		14,244		14,097		Diluted	14,275		14,278		14,271		14,244

Three Months Ended
June 30, Six Months Ended
June 30,
2021 2020 2021 2020
Net income (loss) $ 10 $ 6,829 $ (9,415) $ (138,983)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment, net of 0 taxes (1,573) 29,385 (3,200) (19,156)
Total other comprehensive income (loss), net of taxes (1,573) 29,385 (3,200) (19,156)
Comprehensive income (loss) (1,563) 36,214 (12,615) (158,139)
Less: Comprehensive (loss) income attributable to noncontrolling interest (11) 303 38 466
Comprehensive (loss) income attributable to Civeo Corporation $ (1,552) $ 35,911 $ (12,653) $ (158,605)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Net income (loss)	$	10,230	$	10	$	12,138	$	(9,415)

Other comprehensive loss, net of taxes:
Foreign currency translation adjustment, net of zero taxes	(20,024)		(1,573)		(12,012)		(3,200)
Total other comprehensive loss, net of taxes	(20,024)		(1,573)		(12,012)		(3,200)

Comprehensive income (loss)	(9,794)		(1,563)		126		(12,615)
Less: Comprehensive income (loss) attributable to noncontrolling interest	568		(11)		1,106		38
Comprehensive loss attributable to Civeo Corporation	$	(10,362)	$	(1,552)	$	(980)	$	(12,653)


		June 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
		(Unaudited)					(Unaudited)
ASSETS	ASSETS					ASSETS

Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	4,414	$	6,155	Cash and cash equivalents	$	4,782	$	6,282
Accounts receivable, net	Accounts receivable, net	114,187		89,782		Accounts receivable, net	134,845		114,859
Inventories	Inventories	6,958		6,181		Inventories	7,382		6,468
Prepaid expenses	Prepaid expenses	5,537		7,020		Prepaid expenses	5,003		6,876
Other current assets	Other current assets	9,976		6,165		Other current assets	6,282		10,946
Assets held for sale	Assets held for sale	2,205		3,910		Assets held for sale	11,430		11,762
Total current assets	Total current assets	143,277		119,213		Total current assets	169,724		157,193

Property, plant and equipment, net	Property, plant and equipment, net	442,819		486,930		Property, plant and equipment, net	349,094		389,996
Goodwill	Goodwill	8,474		8,729		Goodwill	7,798		8,204
Other intangible assets, net	Other intangible assets, net	98,967		99,749		Other intangible assets, net	88,936		93,642
Operating lease right-of-use assets	Operating lease right-of-use assets	21,445		22,606		Operating lease right-of-use assets	16,295		18,327
Other noncurrent assets	Other noncurrent assets	2,705		3,626		Other noncurrent assets	5,550		5,372
Total assets	Total assets	$	717,687	$	740,853	Total assets	$	637,397	$	672,734

LIABILITIES AND SHAREHOLDERS’ EQUITY	LIABILITIES AND SHAREHOLDERS’ EQUITY					LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	43,956	$	42,056	Accounts payable	$	45,360	$	49,321
Accrued liabilities	Accrued liabilities	23,983		27,349		Accrued liabilities	28,289		33,564
Income taxes	Income taxes	225		203		Income taxes	74		171
Current portion of long-term debt	Current portion of long-term debt	35,593		34,585		Current portion of long-term debt	29,880		30,576
Deferred revenue	Deferred revenue	21,486		6,812		Deferred revenue	7,256		18,479
Other current liabilities	Other current liabilities	5,997		5,760		Other current liabilities	8,494		4,807
Total current liabilities	Total current liabilities	131,240		116,765		Total current liabilities	119,353		136,918

Long-term debt, less current maturities	Long-term debt, less current maturities	189,228		214,000		Long-term debt, less current maturities	123,018		142,602

Deferred income taxes						Deferred income taxes	3,999		896
Operating lease liabilities	Operating lease liabilities	17,997		19,834		Operating lease liabilities	13,438		15,429
Other noncurrent liabilities	Other noncurrent liabilities	15,817		14,897		Other noncurrent liabilities	14,069		13,778
Total liabilities	Total liabilities	354,282		365,496		Total liabilities	273,877		309,623

Commitments and contingencies (Note 10)	Commitments and contingencies (Note 10)	0		0		Commitments and contingencies (Note 10)	0		0

Shareholders’ Equity:	Shareholders’ Equity:					Shareholders’ Equity:
Preferred shares (Class A Series 1, 0 par value; 50,000,000 shares authorized, 9,042 shares issued and outstanding, respectively; aggregate liquidation preference of $96,471,559 and $95,514,031 as of June 30, 2021 and December 31, 2020)		60,974		60,016
Common shares (0 par value; 46,000,000 shares authorized, 14,636,872 shares and 14,478,878 shares issued, respectively, and 14,316,274 shares and 14,215,169 shares outstanding, respectively) (1)		0		0
Preferred shares (Class A Series 1, no par value; 50,000,000 shares authorized, 9,042 shares issued and outstanding, respectively; aggregate liquidation preference of $98,415,509 and $97,438,687 as of June 30, 2022 and December 31, 2021)						Preferred shares (Class A Series 1, no par value; 50,000,000 shares authorized, 9,042 shares issued and outstanding, respectively; aggregate liquidation preference of $98,415,509 and $97,438,687 as of June 30, 2022 and December 31, 2021)	62,918		61,941
Common shares (no par value; 46,000,000 shares authorized, 14,554,687 shares and 14,431,819 shares issued, respectively, and 14,188,012 shares and 14,111,221 shares outstanding, respectively)						Common shares (no par value; 46,000,000 shares authorized, 14,554,687 shares and 14,431,819 shares issued, respectively, and 14,188,012 shares and 14,111,221 shares outstanding, respectively)	—		—
Additional paid-in capital	Additional paid-in capital	1,580,213		1,578,315		Additional paid-in capital	1,584,416		1,582,442
Accumulated deficit	Accumulated deficit	(918,156)		(907,727)		Accumulated deficit	(903,492)		(912,951)
Common shares held in treasury at cost, 320,598 and 263,709 shares, respectively		(8,050)		(6,930)
Common shares held in treasury at cost, 366,675 and 320,598 shares, respectively						Common shares held in treasury at cost, 366,675 and 320,598 shares, respectively	(9,063)		(8,050)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(352,171)		(348,989)		Accumulated other comprehensive loss	(373,841)		(361,883)
Total Civeo Corporation shareholders’ equity	Total Civeo Corporation shareholders’ equity	362,810		374,685		Total Civeo Corporation shareholders’ equity	360,938		361,499
Noncontrolling interest	Noncontrolling interest	595		672		Noncontrolling interest	2,582		1,612
Total shareholders’ equity	Total shareholders’ equity	363,405		375,357		Total shareholders’ equity	363,520		363,111
Total liabilities and shareholders’ equity	Total liabilities and shareholders’ equity	$	717,687	$	740,853	Total liabilities and shareholders’ equity	$	637,397	$	672,734


		Attributable to Civeo																	Attributable to Civeo
		Preferred Shares		Common Shares															Preferred Shares		Common Shares
		Amount		Par Value		Additional Paid-in Capital		Accumulated Deficit		Treasury Shares		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest		Total Shareholders’ Equity
Balance, March 31, 2020		$	58,597	$	—	$	1,574,457	$	(918,128)	$	(6,914)	$	(411,619)	$	552	$	296,945
Net income (loss)		—		—		—		6,607		—		—		222		6,829
Currency translation adjustment		—		—		—		—		—		29,304		81		29,385
Dividends paid		—		—		—		—		—		—		(231)		(231)
Dividends attributable to Class A preferred shares		471		—		—		(471)		—		—		—		—
Share-based compensation		—		—		1,331		—		(16)		—		—		1,315
Balance, June 30, 2020		$	59,068	$	—	$	1,575,788	$	(911,992)	$	(6,930)	$	(382,315)	$	624	$	334,243
																			Amount		Par Value		Additional Paid-in Capital		Accumulated Deficit		Treasury Shares		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest		Total Shareholders’ Equity
Balance, March 31, 2021	Balance, March 31, 2021	$	60,494	$	—	$	1,579,342	$	(917,689)	$	(8,050)	$	(350,606)	$	648	$	364,139	Balance, March 31, 2021	$	60,494	$	—	$	1,579,342	$	(917,689)	$	(8,050)	$	(350,606)	$	648	$	364,139
Net income (loss)	Net income (loss)	—		—		—		13		—		—		(3)		10		Net income (loss)	—		—		—		13		—		—		(3)		10
Currency translation adjustment	Currency translation adjustment	—		—		—		—		—		(1,565)		(8)		(1,573)		Currency translation adjustment	—		—		—		—		—		(1,565)		(8)		(1,573)
Dividends paid	Dividends paid	—		—		—		—		—		—		(42)		(42)		Dividends paid	—		—		—		—		—		—		(42)		(42)
Dividends attributable to Class A preferred shares	Dividends attributable to Class A preferred shares	480		—		—		(480)		—		—		—		—		Dividends attributable to Class A preferred shares	480		—		—		(480)		—		—		—		—
Share-based compensation	Share-based compensation	—		—		871		—		—		—		—		871		Share-based compensation	—		—		871		—		—		—		—		871
Balance, June 30, 2021	Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405	Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405

Balance, December 31, 2019		$	58,129	$	—	$	1,572,249	$	(771,590)	$	(5,472)	$	(363,173)	$	662	$	490,805
Balance, March 31, 2022																		Balance, March 31, 2022	$	62,428	$	—	$	1,583,474	$	(912,037)	$	(9,063)	$	(353,911)	$	2,080	$	372,971
Net income (loss)	Net income (loss)	—		—		—		(139,463)		—		—		480		(138,983)		Net income (loss)	—		—		—		9,568		—		—		662		10,230
Currency translation adjustment	Currency translation adjustment	—		—		—		—		—		(19,142)		(14)		(19,156)		Currency translation adjustment	—		—		—		—		—		(19,930)		(94)		(20,024)
Dividends paid	Dividends paid	—		—		—		—		—		—		(504)		(504)		Dividends paid	—		—		—		—		—		—		(66)		(66)
Dividends attributable to Class A preferred shares	Dividends attributable to Class A preferred shares	939		—		—		(939)		—		—		—		—		Dividends attributable to Class A preferred shares	490		—		—		(490)		—		—		—		—
Common shares repurchased																		Common shares repurchased	—		—		—		(533)		—		—		—		(533)
Share-based compensation	Share-based compensation	—		—		3,539		—		(1,458)		—		—		2,081		Share-based compensation	—		—		942		—		—		—		—		942
Balance, June 30, 2020		$	59,068	$	—	$	1,575,788	$	(911,992)	$	(6,930)	$	(382,315)	$	624	$	334,243
Balance, June 30, 2022																		Balance, June 30, 2022	$	62,918	$	—	$	1,584,416	$	(903,492)	$	(9,063)	$	(373,841)	$	2,582	$	363,520

Balance, December 31, 2020	Balance, December 31, 2020	$	60,016	$	—	$	1,578,315	$	(907,727)	$	(6,930)	$	(348,989)	$	672	$	375,357	Balance, December 31, 2020	$	60,016	$	—	$	1,578,315	$	(907,727)	$	(6,930)	$	(348,989)	$	672	$	375,357
Net income (loss)	Net income (loss)	—		—		—		(9,471)		—		—		56		(9,415)		Net income (loss)	—		—		—		(9,471)		—		—		56		(9,415)
Currency translation adjustment	Currency translation adjustment	—		—		—		—		—		(3,182)		(18)		(3,200)		Currency translation adjustment	—		—		—		—		—		(3,182)		(18)		(3,200)
Dividends paid	Dividends paid	—		—		—		—		—		—		(115)		(115)		Dividends paid	—		—		—		—		—		—		(115)		(115)
Dividends attributable to Class A preferred shares	Dividends attributable to Class A preferred shares	958		—		—		(958)		—		—		—		—		Dividends attributable to Class A preferred shares	958		—		—		(958)		—		—		—		—
Share-based compensation	Share-based compensation	—		—		1,898		—		(1,120)		—		—		778		Share-based compensation	—		—		1,898		—		(1,120)		—		—		778
Balance, June 30, 2021	Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405	Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405

Balance, December 31, 2021																		Balance, December 31, 2021	$	61,941	$	—	$	1,582,442	$	(912,951)	$	(8,050)	$	(361,883)	$	1,612	$	363,111
Net income																		Net income	—		—		—		10,978		—		—		1,160		12,138
Currency translation adjustment																		Currency translation adjustment	—		—		—		—		—		(11,958)		(54)		(12,012)
Dividends paid																		Dividends paid	—		—		—		—		—		—		(136)		(136)
Dividends attributable to Class A preferred shares																		Dividends attributable to Class A preferred shares	977		—		—		(977)		—		—		—		—
Common shares repurchased																		Common shares repurchased	—		—		—		(542)		—		—		—		(542)
Share-based compensation																		Share-based compensation	—		—		1,974		—		(1,013)		—				961
Balance, June 30, 2022																		Balance, June 30, 2022	$	62,918	$	—	$	1,584,416	$	(903,492)	$	(9,063)	$	(373,841)	$	2,582	$	363,520


		Six Months Ended June 30,					Six Months Ended June 30,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net loss		$	(9,415)	$	(138,983)
Adjustments to reconcile net loss to net cash provided by operating activities:
Net income (loss)						Net income (loss)	$	12,138	$	(9,415)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:						Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	Depreciation and amortization	42,646		47,707		Depreciation and amortization	43,210		42,646
Impairment charges	Impairment charges	7,935		144,120		Impairment charges	—		7,935

Deferred income tax expense (benefit)		416		(8,941)
Deferred income tax expense						Deferred income tax expense	3,256		416
Non-cash compensation charge	Non-cash compensation charge	1,898		3,539		Non-cash compensation charge	1,974		1,898
Gains on disposals of assets	Gains on disposals of assets	(1,941)		(1,819)		Gains on disposals of assets	(1,895)		(1,941)
Provision for credit losses, net of recoveries		147		25
Provision (benefit) for credit losses, net of recoveries						Provision (benefit) for credit losses, net of recoveries	(24)		147
Other, net	Other, net	1,483		(3,240)		Other, net	1,544		1,483
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
Accounts receivable	Accounts receivable	(24,617)		10,231		Accounts receivable	(23,119)		(24,617)
Inventories	Inventories	(830)		(1,895)		Inventories	(1,180)		(830)
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	(563)		(4,583)		Accounts payable and accrued liabilities	(6,713)		(563)
Taxes payable	Taxes payable	21		251		Taxes payable	(99)		21
Other current and noncurrent assets and liabilities, net	Other current and noncurrent assets and liabilities, net	12,170		(1,094)		Other current and noncurrent assets and liabilities, net	(5,461)		12,170
Net cash flows provided by operating activities	Net cash flows provided by operating activities	29,350		45,318		Net cash flows provided by operating activities	23,631		29,350

Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:
Capital expenditures	Capital expenditures	(6,530)		(3,847)		Capital expenditures	(8,647)		(6,530)

Proceeds from disposition of property, plant and equipment	Proceeds from disposition of property, plant and equipment	7,012		1,897		Proceeds from disposition of property, plant and equipment	3,302		7,012
Other, net	Other, net	0		4,619		Other, net	190		—
Net cash flows provided by investing activities		482		2,669
Net cash flows provided by (used in) investing activities						Net cash flows provided by (used in) investing activities	(5,155)		482

Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Revolving credit borrowings	Revolving credit borrowings	117,976		122,320		Revolving credit borrowings	155,712		117,976
Revolving credit repayments	Revolving credit repayments	(130,080)		(147,950)		Revolving credit repayments	(158,288)		(130,080)
Term loan repayments	Term loan repayments	(17,874)		(16,551)		Term loan repayments	(15,763)		(17,874)

Repurchases of common shares						Repurchases of common shares	(542)		—
Taxes paid on vested shares	Taxes paid on vested shares	(1,120)		(1,458)		Taxes paid on vested shares	(1,013)		(1,120)
Net cash flows used in financing activities	Net cash flows used in financing activities	(31,098)		(43,639)		Net cash flows used in financing activities	(19,894)		(31,098)

Effect of exchange rate changes on cash	Effect of exchange rate changes on cash	(475)		(368)		Effect of exchange rate changes on cash	(82)		(475)
Net change in cash and cash equivalents	Net change in cash and cash equivalents	(1,741)		3,980		Net change in cash and cash equivalents	(1,500)		(1,741)
Cash and cash equivalents, beginning of period	Cash and cash equivalents, beginning of period	6,155		3,331		Cash and cash equivalents, beginning of period	6,282		6,155

Cash and cash equivalents, end of period	Cash and cash equivalents, end of period	$	4,414	$	7,311	Cash and cash equivalents, end of period	$	4,782	$	4,414

Non-cash financing activities:	Non-cash financing activities:					Non-cash financing activities:
Preferred dividends paid-in-kind	Preferred dividends paid-in-kind	$	958	$	939	Preferred dividends paid-in-kind	$	977	$	958

We provide hospitality services to the natural resources industry in Canada, Australia and the U.S. ~~We provide a~~Our full suite of hospitality services for our guests ~~including~~includes lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own. In many cases, we provide services that support the day-to-day operations, ~~of accommodation facilities,~~ such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. We also offer development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed. We primarily operate in some of the world’s most active oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore producing regions, and our customers include major and independent oil companies, mining companies, engineering companies and oilfield and mining service companies. We operate in 3 principal reportable business segments – Canada, Australia and the U.S.

converted into one common share. Our common shares began trading on a reverse share split adjusted basis on November 19, 2020. A total of 14,215,169 common shares were issued and outstanding immediately after the reverse share split. No fractional shares were outstanding following the reverse share split. In lieu of any fractional share, the aggregate number of common shares that a holder was entitled to was, if the fraction was less than half a common share, rounded down to the next closest whole number of common shares, and if the fraction was at least half of a common share, rounded up to one whole common share.

The accompanying unaudited consolidated financial statements of Civeo have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) has been condensed or omitted pursuant to those rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which Civeo considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of Civeo at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.

The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, actual amounts may differ from those included in the accompanying consolidated financial statements.

In December 2019, the FASB issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 remove certain exceptions to the general principles in Accounting Standards Codification Topic 740. The amendments also clarify and amend existing guidance to improve consistent application. The amendments are effective for financial statements issued for reporting periods beginning after December 15, 2020 and interim periods within the reporting periods. The transition method (retrospective, modified retrospective or prospective basis) related to the amendments depends on the applicable guidance, and all amendments for which there is no transition guidance specified are to be applied on a prospective basis. We adopted ASU 2019-12 on January 1, 2021 and have applied the prospective basis. The adoption of this new standard did not have an impact on our consolidated financial statements.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Canada	Canada									Canada
Accommodation revenues	Accommodation revenues	$	69,759	$	40,204	$	116,289	$	106,270	Accommodation revenues	$	79,431	$	69,759	$	146,625	$	116,289
Mobile facility rental revenues	Mobile facility rental revenues	8,666		6,072		19,165		8,580		Mobile facility rental revenues	24,058		8,666		48,076		19,165
Food service and other services revenues	Food service and other services revenues	4,856		6,710		9,712		17,484		Food service and other services revenues	5,534		4,856		10,274		9,712

Total Canada revenues	Total Canada revenues	83,281		52,986		145,166		132,334		Total Canada revenues	109,023		83,281		204,975		145,166

Australia	Australia									Australia
Accommodation revenues	Accommodation revenues	$	37,780	$	34,933	$	71,455	$	67,518	Accommodation revenues	$	39,052	$	37,780	$	76,651	$	71,455
Food service and other services revenues	Food service and other services revenues	26,239		22,138		52,201		38,666		Food service and other services revenues	28,768		26,239		54,698		52,201
Total Australia revenues	Total Australia revenues	64,019		57,071		123,656		106,184		Total Australia revenues	67,820		64,019		131,349		123,656

U.S.	U.S.									U.S.
Accommodation revenues	Accommodation revenues	$	1,605	$	242	$	2,377	$	1,498	Accommodation revenues	$	791	$	1,605	$	1,254	$	2,377
Mobile facility rental revenues	Mobile facility rental revenues	3,761		3,870		6,828		10,057		Mobile facility rental revenues	7,051		3,761		12,317		6,828
Manufacturing revenues	Manufacturing revenues	1,499		524		1,562		3,387		Manufacturing revenues	254		1,499		699		1,562
Food service and other services revenues	Food service and other services revenues	11		9		17		34		Food service and other services revenues	15		11		38		17
Total U.S. revenues	Total U.S. revenues	6,876		4,645		10,784		14,976		Total U.S. revenues	8,111		6,876		14,308		10,784

Total revenues	Total revenues	$	154,176	$	114,702	$	279,606	$	253,494	Total revenues	$	184,954	$	154,176	$	350,632	$	279,606

During the first quarter of 2020, we recorded goodwill impairment charges related to one of our reporting units. Our estimates of fair value required us to use significant unobservable inputs, representative of Level 3 fair value measurements, including numerous assumptions with respect to future circumstances that might directly impact each of the relevant asset groups’ operations in the future and are therefore uncertain. These assumptions with respect to future circumstances included future cash flows, oil, met coal and natural gas prices, anticipated spending by our customers, the cost of capital, and industry and/or local market conditions. We estimated the fair value when conducting the goodwill impairment test primarily using an income approach. The discount rates used to value our reporting units for the goodwill impairment test ranged between 10.5% and 14.0%.

During the second quarter of 2021 and the first quarter of 2020, we wrote down certain long-lived assets to fair value. During the first quarter of 2020, we estimated the fair value when conducting the long-lived asset impairment tests primarily using an income approach. We used a variety of unobservable inputs and underlying assumptions consistent with those discussed above for purposes of our goodwill impairment test. The discount rates used to value our Canadian and U.S. segments long-lived asset impairment analysis ranged between 11.0% and 14.0%. During the second quarter of 2021, our estimate of the fair value of undeveloped land positions in Australia that were impaired was based on appraisals from third parties.

Estimated
Useful Life
(in years) June 30, 2021 December 31, 2020
Property, plant and equipment, net:
Land $ 40,723 $ 47,751
Accommodations assets 3 — 15 1,718,621 1,737,620
Buildings and leasehold improvements 7 — 20 28,471 28,831
Machinery and equipment 4 — 15 13,541 12,784
Office furniture and equipment 3 — 7 63,556 61,850
Vehicles 3 — 5 14,467 15,363
Construction in progress 6,443 5,523
Total property, plant and equipment 1,885,822 1,909,722
Accumulated depreciation (1,443,003) (1,422,792)
Total property, plant and equipment, net $ 442,819 $ 486,930

Quarter ended June 30, 2021. During the second quarter of 2021, we recorded impairment expense of $7.9 million related to various undeveloped land positions and related permitting costs in Australia. At June 30, 2021, we identified an impairment trigger related to certain of these properties due to the cancellation of a significant thermal coal project in Australia and our negative expectations related to other possible Australian thermal coal projects becoming viable in the near term. Accordingly, the assets were written down to their estimated fair value of $2.4 million. ~~As of June 30, 2021, we concluded certain of the undeveloped land positions met the criteria to be classified as held for sale.~~

Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the ~~COVID-19 coronavirus (COVID-19) and~~carrying values of these instruments on the response thereto during the first quarter of 2020 negatively impacted the global economy. The resulting unprecedented decline in oil demand, coupled with disagreements between Saudi Arabia and Russia about production limits, resulted in a collapse of global oil prices in March 2020, thereby creating unprecedented downward pressure on stock prices in the energy industry, particularly small-cap companies withaccompanying consolidated balance sheets approximate their fair values.

As of June 30, 2022 and ~~Canada, such as Civeo. As a result,~~December 31, 2021, we experienced a sustained reduction of our share price during the first quarter of 2020. Our market capitalization implied an enterprise value which was significantly less than the sum of the estimated fair values of our reporting units, and we determined that an indicator of a goodwill impairment was present as of March 31, 2020. Accordingly, we performed an interim goodwill impairment test as of March 31, 2020, and the carrying amount of our Canadian reporting unit exceeded the reporting unit's fair value. Based on the results of the impairment test, we reduced the value of our goodwill in our Canadian reporting unit to 0 and recognized impairment expense in the first quarter of 2020 of $93.6 million.

Furthermore, as a result of the decline in global oil prices and forecasts for a potentially protracted period of lower prices, as well as the goodwill impairment in our Canadian segment, we determined all asset groups within this segment had experienced a trigger that indicated that the carrying values might not be recoverable. Accordingly, we assessedbelieve the carrying value of ~~each asset group to determine if it continued to be recoverable based on~~our floating-rate debt outstanding under our term loans and revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment. We estimated ~~future cash flows. Based on~~ the ~~assessment, the carrying values~~fair value of ~~certain asset groups were determined to not be fully recoverable,~~our floating-rate term loan and ~~we proceeded to compare~~revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans. In addition, the estimated fair value of ~~these asset groups to their respective carrying values. As a result, certain asset groups were written~~our assets held for sale is based upon Level 2 fair value measurements, which include appraisals and previous negotiations with third parties.


	Estimated Useful Life (in years)			June 30, 2022		December 31, 2021
Property, plant and equipment, net:
Land				$	28,664	$	30,556
Accommodations assets	3	—	15	1,592,357		1,657,577
Buildings and leasehold improvements	7	—	20	23,307		24,335
Machinery and equipment	4	—	15	14,804		14,983
Office furniture and equipment	3	—	7	63,407		63,228
Vehicles	3	—	5	14,605		14,578
Construction in progress				5,671		2,063
Total property, plant and equipment				1,742,815		1,807,320
Accumulated depreciation				(1,393,721)		(1,417,324)
Total property, plant and equipment, net				$	349,094	$	389,996

As of June 30, 2022, assets held for ~~a potentially protracted period of lower prices, we reviewed all asset groups~~sale included certain assets in our U.S. business segment, ~~to determine if~~ an ~~indicator of impairment had occurred that would indicate that the carrying values of the asset groups~~undeveloped land holding and a village in our Australia business segment and an unused corporate office space acquired in the ~~segment might not be recoverable. We determined that~~Noralta acquisition in our Canada business segment. As of December 31, 2021, assets held for sale included certain ~~asset groups within the segment had experienced an indicator of impairment, and thus we assessed the carrying values of our long-lived~~ assets in ~~the U.S. to determine if they continued to be recoverable based on estimated future cash flows. Based on the assessment, the carrying values of certain of~~ our U.S. ~~asset groups~~business segment and undeveloped land holdings in our Australia business segment. These assets were ~~determined to not be recoverable, and we proceeded to compare~~recorded at the estimated fair ~~values~~value less costs to sell, which exceeded their carry values.

We calculate basic and diluted earnings per share by applying the two-class method because we have participating securities in the form of Class A preferred shares. Participating securities are allocated a proportional share of net income determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities. In calculating diluted earnings per share, we utilize the most dilutive result of the two class method and if-converted methods. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive.


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Numerator:	Numerator:									Numerator:
Net (loss) income attributable to Civeo common shareholders		$	(467)	$	6,136	$	(10,429)	$	(140,402)
Net income (loss) attributable to Civeo common shareholders										Net income (loss) attributable to Civeo common shareholders	$	9,078	$	(467)	$	10,001	$	(10,429)
Less: income allocated to participating securities	Less: income allocated to participating securities	0		(886)		0		0		Less: income allocated to participating securities	(1,356)		—		(1,497)		—
Basic net income (loss) attributable to Civeo Corporation common shareholders	Basic net income (loss) attributable to Civeo Corporation common shareholders	$	(467)	$	5,250	$	(10,429)	$	(140,402)	Basic net income (loss) attributable to Civeo Corporation common shareholders	$	7,722	$	(467)	$	8,504	$	(10,429)
Add: undistributed income attributable to participating securities	Add: undistributed income attributable to participating securities	0		886		0		0		Add: undistributed income attributable to participating securities	1,356		—		1,497		—
Less: undistributed income reallocated to participating securities	Less: undistributed income reallocated to participating securities	0		(885)		0		0		Less: undistributed income reallocated to participating securities	(1,346)		—		(1,483)		—
Diluted net income (loss) attributable to Civeo Corporation common shareholders	Diluted net income (loss) attributable to Civeo Corporation common shareholders	$	(467)	$	5,251	$	(10,429)	$	(140,402)	Diluted net income (loss) attributable to Civeo Corporation common shareholders	$	7,732	$	(467)	$	8,518	$	(10,429)

Denominator:	Denominator:									Denominator:
Weighted average shares outstanding - basic	Weighted average shares outstanding - basic	14,278		14,151		14,244		14,097		Weighted average shares outstanding - basic	14,148		14,278		14,122		14,244
Dilutive shares - share-based awards	Dilutive shares - share-based awards	0		15		0		0		Dilutive shares - share-based awards	127		—		149		—
Weighted average shares outstanding - diluted	Weighted average shares outstanding - diluted	14,278		14,166		14,244		14,097		Weighted average shares outstanding - diluted	14,275		14,278		14,271		14,244

Basic net loss per share attributable to Civeo Corporation common shareholders (1)		$	(0.03)	$	0.37	$	(0.73)	$	(9.96)
Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1)										Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.55	$	(0.03)	$	0.60	$	(0.73)

Diluted net loss per share attributable to Civeo Corporation common shareholders (1)		$	(0.03)	$	0.37	$	(0.73)	$	(9.96)
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)										Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.54	$	(0.03)	$	0.60	$	(0.73)

For the three and six months ended June 30, ~~2020,~~2022, we excluded ~~0.3~~a portion of our share-based awards, which totaled less than 0.1 million ~~share-based awards~~shares, from the computation of diluted earnings per share because their effect was anti-dilutive. When an entity has a net loss from continuing operations, it is prohibited from including potential common shares in the computation of diluted per share amounts. ~~For~~As a result of the net loss for the three ~~months ended June 30, 2021~~ and ~~the~~ six months ended June 30, 2021, ~~and 2020,~~ we excluded from the computation of diluted loss per share 0.1 million and 0.2 million ~~and 0.4 million share-based~~share based awards, respectively, since the effect would have been anti-dilutive. Additionally, for the three and six months ended June 30, ~~2021~~2022 and ~~2020, we excluded from the computation~~2021, the impact of converting the Preferred Shares into ~~2.4~~2.5 million and 2.4 million common shares, respectively, ~~since~~using the ~~effect~~if-converted method would have been anti-dilutive.


		June 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Canadian term loan, which matures on May 30, 2023; C$11.2 million principal repayable per quarter; weighted average interest rate of 4.0% for the six month period ended June 30, 2021		$	174,636	$	187,530
Canadian term loan; weighted average interest rate of 4.1% for the six month period ended June 30, 2022						Canadian term loan; weighted average interest rate of 4.1% for the six month period ended June 30, 2022	$	46,560	$	63,104

U.S. revolving credit facility, which matures on May 30, 2023; weighted average interest rate of 5.8% for the six month period ended June 30, 2021		0		0
U.S. revolving credit facility; weighted average interest rate of 5.7% for the six month period ended June 30, 2022						U.S. revolving credit facility; weighted average interest rate of 5.7% for the six month period ended June 30, 2022	—		—

Canadian revolving credit facility, which matures on May 30, 2023; weighted average interest rate of 4.5% for the six month period ended June 30, 2021		44,697		45,789
Canadian revolving credit facility; weighted average interest rate of 4.4% for the six month period ended June 30, 2022						Canadian revolving credit facility; weighted average interest rate of 4.4% for the six month period ended June 30, 2022	93,586		111,300

Australian revolving credit facility, which matures on May 30, 2023; weighted average interest rate of 3.6% for the six month period ended June 30, 2021		7,500		17,767
Australian revolving credit facility; weighted average interest rate of 3.3% for the six month period ended June 30, 2022						Australian revolving credit facility; weighted average interest rate of 3.3% for the six month period ended June 30, 2022	14,492		726
		226,833		251,086			154,638		175,130
Less: Unamortized debt issuance costs	Less: Unamortized debt issuance costs	2,012		2,501		Less: Unamortized debt issuance costs	1,740		1,952
Total debt	Total debt	224,821		248,585		Total debt	152,898		173,178
Less: Current portion of long-term debt, including unamortized debt issuance costs, net	Less: Current portion of long-term debt, including unamortized debt issuance costs, net	35,593		34,585		Less: Current portion of long-term debt, including unamortized debt issuance costs, net	29,880		30,576
Long-term debt, less current maturities	Long-term debt, less current maturities	$	189,228	$	214,000	Long-term debt, less current maturities	$	123,018	$	142,602

As of June 30, ~~2021,~~2022, our Credit Agreement (as then amended to date, the Credit Agreement) provided for: (i) a ~~$167.3~~$200.0 million revolving credit facility scheduled to mature on ~~May 30, 2023,~~September 8, 2025, allocated as follows: (A) a $10.0 million senior secured revolving credit facility in favor of ~~certain~~one of our U.S. subsidiaries, as ~~borrowers;~~borrower; (B) a ~~$122.3~~$155.0 million senior secured revolving credit facility in favor of Civeo, ~~and certain of our Canadian subsidiaries,~~ as ~~borrowers;~~borrower; and (C) a $35.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower; and (ii) a ~~$194.8~~C$100.0 million term loan facility scheduled to ~~mature~~be fully repaid on ~~May 30,~~December 31, 2023 ~~for certain lenders~~ in favor of Civeo.

U.S. dollar amounts outstanding under the facilities provided by the Credit Agreement bear interest at a variable rate equal to the London Inter-Bank Offered Rate (LIBOR) plus a margin of ~~3.50%~~3.00% to ~~4.50%~~4.00%, or a base rate plus ~~2.50%~~2.00% to ~~3.50%~~3.00%, in each case based on a ratio of our total net debt to ~~consolidated~~Consolidated EBITDA (as defined in the Credit Agreement). Canadian dollar amounts outstanding bear interest at a variable rate equal to a Bankers’ Acceptance Discount Rate (as defined in the Credit Agreement) based on the Canadian Dollar Offered Rate (CDOR) plus a margin of ~~3.50%~~3.00% to ~~4.50%~~4.00%, or a Canadian Prime rate plus a margin of ~~2.50%~~2.00% to ~~3.50%~~3.00%, in each case based on a ratio of our total debt to ~~consolidated~~Consolidated EBITDA. Australian dollar amounts outstanding under the Credit Agreement bear interest at a variable rate equal to the Bank Bill Swap Bid Rate plus a margin of ~~3.50%~~3.00% to ~~4.50%~~4.00%, based on a ratio of our total net debt to ~~consolidated~~Consolidated EBITDA. The future transitions from LIBOR and CDOR as interest rate benchmarks are addressed in the Credit Agreement and at such time the transition from (i) LIBOR takes place, an alternate benchmark will be established based on the first alternative of the following, plus a benchmark replacement adjustment, Term Secured Overnight Financing Rate (SOFR), Daily Simple SOFR and an alternative benchmark selected by the administrative agent and the applicable borrowers giving due consideration to any selection or recommendation by a government body or any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time or (ii) CDOR takes place, we will endeavor with the administrative agent to establish an alternate rate of interest to ~~LIBOR or~~ CDOR that gives due consideration to ~~(1) the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time for the replacement of LIBOR and (2)~~ any evolving or then existing convention for similar Canadian Dollar denominated syndicated credit facilities for the replacement of CDOR.

The Credit Agreement contains customary affirmative and negative covenants that, among other things, limit or restrict: (i) indebtedness, liens and fundamental changes; (ii) asset sales; (iii) acquisitions of margin stock; (iv) specified acquisitions; (v) certain restrictive agreements; (vi) transactions with affiliates; and (vii) investments and other restricted payments, including dividends and other distributions. In addition, we must maintain ana minimum interest coverage ratio, defined as the ratio of ~~consolidated~~Consolidated EBITDA to consolidated interest expense, of at least 3.00 to 1.00 and our maximum net leverage ratio, defined as

the ratio of total net debt to ~~consolidated~~Consolidated EBITDA, of no greater than ~~3.50~~3.00 to 1.00. Following a qualified offering of indebtedness, ~~with gross proceeds in excess of $150.0 million,~~ we will be required to maintain a maximum leverage ratio of no greater than ~~4.00~~3.50 to 1.00 and a maximum senior secured ratio less than ~~2.50~~2.00 to 1.00. Each of the factors considered in the calculations of these ratios are defined in the Credit Agreement. EBITDA and consolidated interest, as defined, exclude goodwill and asset impairments, debt

Borrowings under the 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 Credit Agreement are guaranteed by our significant subsidiaries. As of June 30, ~~2021,~~2022, we had 87 lenders that were parties to the Credit Agreement, with total commitments (including both revolving commitments and term commitments) ranging from ~~$22.4~~$22.5 million to ~~$71.1~~$52.0 million. As of June 30, ~~2021,~~2022, we had outstanding letters of credit of ~~$0.9~~$0.3 million under the U.S. facility, 0zero under the Australian facility and ~~$2.1~~$1.1 million under the Canadian facility.

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 June 30, ~~2021~~2022 and ~~2020,~~2021, 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 ~~benefit~~expense for the three months ended June 30, ~~2021~~2022 totaled $1.8 million, or 15.1% of pretax income, compared to income tax benefit of $0.5 million, or 102.1% of pretax loss, ~~compared to tax expense of $0.1 million, or 1.8% of pretax income,~~ for the three months ended June 30, ~~2020.~~2021. Our effective tax rate for both the three months ended June 30, ~~2021~~2022 and ~~June 30, 2020~~2021 was impacted by considering Canada and the U.S. loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision. ~~Under ASC~~Additionally, under Accounting Standards Codification 740-270, ~~"Accounting~~“Accounting for Income Taxes,"” the quarterly tax provision is based on our current estimate of the annual effective tax rate less the prior ~~quarter's year-to-date~~quarter’s year to date provision.

Our income tax expense for ~~the~~ six months ended June 30, ~~2021~~2022 totaled $3.4 million, or 21.8% of pretax income, compared to income tax expense of $0.6 million, or (6.6)% ~~of pretax loss, compared to a benefit of $8.7 million, or 5.9%~~ of pretax loss, for the six months ended June 30, ~~2020.~~2021. Our effective tax rate for the six months ended June 30, ~~2021~~2022 and ~~June 30, 2020~~2021 was impacted by considering Canada and the U.S. loss jurisdictions. Although Australia was not considered a loss jurisdiction for the six months ended June 30, 2020, our effective tax rate was impacted by utilization of deferred tax assets and a release of the corresponding valuation allowance in Australia, resulting in no income tax expense for that jurisdiction. Additionally, our effective tax rate for the six months ended June 30, 2020 was impacted by a deferred tax benefit of $9.6 million offset by an increase of $0.7 million in the valuation allowance in Canada.

We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including warranty and product liability claims as a result of our products or operations. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

Our accumulated other comprehensive loss increased ~~$3.2~~$12.0 million from ~~$349.0~~$361.9 million at December 31, ~~2020~~2021 to ~~$352.2~~$373.8 million at June 30, ~~2021,~~2022, as a result of foreign currency exchange rate fluctuations. Changes in other comprehensive loss during the first six months of ~~2021~~2022 were primarily driven by the Australian dollar ~~decreasing in value compared to the U.S. dollar, partially offset by the~~and Canadian dollar ~~increasing~~decreasing in value compared to the U.S. dollar. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets totaled approximately C$~~166~~238 million and A$~~280~~225 million, respectively, at June 30, ~~2021.~~2022.

In August 2021, our Board of Directors (Board) authorized a common share repurchase program to repurchase up to 5.0% of our total common shares which are issued and outstanding, or approximately 715,000 common shares, over a twelve month period. The common share repurchase program commenced in September 2021 and will terminate no later than twelve months from date of commencement. The repurchase authorization allows repurchases from time to time in open market transactions, including pursuant to trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.

We intend to fund repurchases through cash on hand and cash generated from operations. Pursuant to our common share repurchase program, during the six months ended June 30, 2022, we repurchased an aggregate of 22,911 of our common shares outstanding at a weighted average price of $23.65 per share, for a total of approximately $0.5 million. We have repurchased an aggregate of 240,090 of our common shares outstanding at a weighted average price of $21.59 per share for a total cost of $5.2 million since inception of the common share repurchase program. The common shares repurchased under the program 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.

Certain key employees and non-employee directors participate in the Amended and Restated 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes our Board ~~of Directors~~ and the Compensation Committee of our Board ~~of Directors~~ to approve grants of options, awards of restricted shares, performance awards, phantom share awards and dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. No more than 2.4 million Civeo common shares are authorized to be issued under the Civeo Plan.

Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the three months ended June 30, ~~2021~~2022 and ~~2020~~2021 totaled $0.3 million and ~~$0.8~~$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, 2022 and 2021 ~~and 2020~~ totaled ~~$0.8~~$0.7 million and ~~$2.0~~$0.8 million, respectively. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the three months ended June 30, 2022 and 2021 was $1.5 million and ~~2020 was~~ 0, ~~and $0.2 million,~~ respectively. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the six months ended June 30, 2022 and 2021 ~~and 2020~~ was ~~$1.5~~$2.1 million and ~~$2.6~~$1.5 million, respectively.

During the three months ended June 30, ~~2021~~2022 and ~~2020,~~2021, we recognized compensation expense associated with phantom shares totaling ~~$1.4~~$2.5 million and ~~$0.4~~$1.4 million, respectively. During the six months ended June 30, ~~2021~~2022 and ~~2020,~~2021, we recognized compensation expense associated with phantom shares totaling ~~$2.9~~$4.9 million and ~~$0.7~~$2.9 million, respectively. At June 30, ~~2021,~~2022, unrecognized compensation cost related to phantom shares was ~~$9.6~~$14.5 million, as remeasured at June 30, ~~2021,~~2022, which is expected to be recognized over a weighted average period of ~~2.2~~2.0 years.

Performance Awards. On February ~~22, 2021,~~25, 2022, we granted ~~129,754~~122,555 performance awards under the Civeo Plan, which cliff vest in three years on February ~~22, 2024.~~25, 2025 subject to attainment of applicable performance criteria. These awards will be earned in amounts between 0% and 200% of the participant’s target performance share award, based equally on ~~(1)~~(i) the payout percentage associated with Civeo’s relative total shareholder return rank among a peer group that includes 17 other companies

and ~~(2)~~(ii) the payout percentage associated with Civeo's cumulative ~~free~~operating cash flow over the performance period relative to a preset target. The portion of the performance awards tied to cumulative ~~free~~operating cash flow includes a performance-based vesting requirement. The fair value of these awards is based on the closing market price of our common shares on the date of grant. We evaluate the probability of achieving the performance criteria throughout the performance period and will adjust share-based compensation expense based on the number of shares expected to vest based on our estimate of the most probable performance outcome. ~~The ultimate payout of the cumulative free cash flow component of the award can vary from 0% to 60% based on actual results.~~

During the three months ended June 30, ~~2021~~2022 and ~~2020,~~2021, we recognized compensation expense associated with performance awards totaling ~~$0.6~~$0.7 million and $0.6 million, respectively. During the six months ended June 30, ~~2021~~2022 and ~~2020,~~2021, we recognized compensation expense associated with performance awards totaling $1.3 million and $1.1 million, ~~and $1.5 million,~~ respectively. ~~The total fair value of~~No performance share awards ~~that~~ vested during the three months ended June 30, ~~2021~~2022 and ~~2020 was 0.~~2021. The total fair value of performance share awards that vested during the six months ended June 30, 2022 and 2021 ~~and 2020~~ was ~~$1.9~~$2.4 million and $1.9 million, respectively. At June 30, ~~2021,~~2022, unrecognized compensation cost related to performance shares was ~~$3.9~~$5.2 million, which is expected to be recognized over a weighted average period of 2.2 years.


													Total revenues		Depreciation and amortization		Operating income (loss)		Capital expenditures		Total assets
Three months ended June 30, 2022												Three months ended June 30, 2022
Canada												Canada	$	109,023	$	14,998	$	11,197	$	1,847	$	753,303
Australia												Australia	67,820		7,728		5,452		2,832		204,086
U.S.												U.S.	8,111		395		(1,295)		376		26,165
Corporate and eliminations												Corporate and eliminations	—		(38)		(1,112)		—		(346,157)
Total												Total	$	184,954	$	23,083	$	14,242	$	5,055	$	637,397
		Total revenues		Depreciation and amortization		Operating income (loss)		Capital expenditures		Total assets
Three months ended June 30, 2021	Three months ended June 30, 2021											Three months ended June 30, 2021
Canada	Canada	$	83,281	$	12,152	$	7,452	$	1,143	$	763,763	Canada	$	83,281	$	12,152	$	7,452	$	1,143	$	763,763
Australia	Australia	64,019		8,512		(2,656)		1,147		242,730		Australia	64,019		8,512		(2,656)		1,147		242,730
U.S.	U.S.	6,876		542		(1,109)		482		27,793		U.S.	6,876		542		(1,109)		482		27,793
Corporate and eliminations	Corporate and eliminations	0		171		(1,558)		386		(316,599)		Corporate and eliminations	—		171		(1,558)		386		(316,599)
Total	Total	$	154,176	$	21,377	$	2,129	$	3,158	$	717,687	Total	$	154,176	$	21,377	$	2,129	$	3,158	$	717,687

Three months ended June 30, 2020
Six months ended June 30, 2022												Six months ended June 30, 2022
Canada	Canada	$	52,986	$	12,177	$	(6,719)	$	231	$	662,926	Canada	$	204,975	$	26,595	$	15,235	$	3,853	$	753,303
Australia	Australia	57,071		9,733		8,191		748		261,188		Australia	131,349		15,685		11,587		4,048		204,086
U.S.	U.S.	4,645		195		(2,623)		12		30,503		U.S.	14,308		777		(2,904)		724		26,165
Corporate and eliminations	Corporate and eliminations	0		100		(690)		205		(220,034)		Corporate and eliminations	—		153		(5,439)		22		(346,157)
Total	Total	$	114,702	$	22,205	$	(1,841)	$	1,196	$	734,583	Total	$	350,632	$	43,210	$	18,479	$	8,647	$	637,397

Six months ended June 30, 2021	Six months ended June 30, 2021											Six months ended June 30, 2021
Canada	Canada	$	145,166	$	24,239	$	(207)	$	2,323	$	763,763	Canada	$	145,166	$	24,239	$	(207)	$	2,323	$	763,763
Australia	Australia	123,656		16,971		651		2,701		242,730		Australia	123,656		16,971		651		2,701		242,730
United States		10,784		1,108		(3,707)		851		27,793
U.S.												U.S.	10,784		1,108		(3,707)		851		27,793
Corporate and eliminations	Corporate and eliminations	0		328		(4,509)		655		(316,599)		Corporate and eliminations	—		328		(4,509)		655		(316,599)
Total	Total	$	279,606	$	42,646	$	(7,772)	$	6,530	$	717,687	Total	$	279,606	$	42,646	$	(7,772)	$	6,530	$	717,687

Six months ended June 30, 2020
Canada		$	132,334	$	26,546	$	(143,350)	$	841	$	662,926
Australia		106,184		19,028		14,355		1,211		261,188
United States		14,976		1,778		(16,757)		1,384		30,503
Corporate and eliminations		0		355		(5,158)		411		(220,034)
Total		$	253,494	$	47,707	$	(150,910)	$	3,847	$	734,583

This quarterly report on Form 10-Q contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act). The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. 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 impact of COVID-19 and the response thereto and the volatility in the price of and demand for ~~oil,~~commodities, as well as our expectations about capital expenditures in ~~2021~~2022 and beliefs with respect to liquidity needs. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors. For a discussion of known material factors that could affect our results, please refer to “Risk Factors,” “Cautionary Statement Regarding Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021 and our subsequent SEC filings. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Our management believes these forward-looking statements are reasonable. However, you should not place undue reliance on these forward-looking statements, which are based only on our current expectations and are not guarantees of future performance. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise, except to the extent required by applicable law.

In addition, in certain places in this quarterly report, we refer to reports published by third parties that purport to describe trends or developments in the energy industry. We do so for the convenience of our shareholders and in an effort to provide information available in the market that will assist our investors in a better understanding of the market environment in which we operate. However, we specifically disclaim any responsibility for the accuracy and completeness of such information and undertake no obligation to update such information.

We provide hospitality services to the natural resources industry in Canada, Australia and the U.S. Demand for our services can be attributed to two phases of our customers’ projects: (1) the development or construction phase; and (2) the operations or production phase. Historically, initial demand for our hospitality services has been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure, as well as the exploration for oil and natural gas. Long-term demand for our services has been driven by natural resource production, maintenance and operation of those facilities as well as expansion of those sites. In general, industry capital spending programs are based on the outlook for commodity prices, economic growth, global commodity supply/demand, ~~dynamics and~~ estimates of resource ~~production.~~production and shareholder expectations. As a result, demand for our hospitality services is largely sensitive to expected commodity prices, principally related to oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore. Other factors that can affect our business and financial results include the general global economic environment and regulatory changes in

Our business is predominantly located in northern Alberta, Canada; British Columbia, Canada; Queensland, Australia; and Western Australia. We derive most of our business from natural resource companies who are developing and producing oil sands, met coal, LNG and iron ore resources and, to a lesser extent, other hydrocarbon and mineral resources. ~~Approximately 67%~~In the second quarter of 2022, approximately 64% of our revenue iswas generated by our lodges in Canada and our villages in Australia. Where traditional accommodations and infrastructure are insufficient, inaccessible or cost ineffective, our lodge and village facilities provide comprehensive hospitality services similar to those found in an urban hotel. We typically contract our facilities to our customers on a ~~fee-per-person-per- day~~fee-per-person-per-day basis that covers lodging and meals and is based on the duration of customer needs,

The spread of COVID-19 and the response thereto have negatively impacted the global economy. The actions taken by governments and the private-sector to mitigate the spread of COVID-19 and the risk of infection, including government-imposed or voluntary social distancing and quarantining, reduced travel and remote work policies, ~~have~~ evolved with the introduction of vaccination efforts in 2021, and may continue to evolve as ~~the surfacing of~~ virus variants ~~has~~have added ~~a degree of~~ uncertainty to the continuing global impact. Since the COVID-19 pandemic began, we have been impacted by increased staff costs as a result of hospitality labor shortages in Australia. This labor shortage has been exacerbated by significantly reduced foreign labor availability and reduced labor mobility in Australia, which has subsequently led to an increased reliance on more expensive temporary labor resources. We continue to closely monitor the COVID-19 situation and have taken measures to help ensure the health and well-being of our employees, guests and contractors, including screening of individuals that enter our facilities, social distancing practices, enhanced cleaning and sanitization efforts, the suspension of nonessential employee travel and implementation of work-from-home policies, where applicable.

Global oil prices dropped to historically low levels in March and April 2020 due to severely reduced global oil demand, high global crude inventory levels, uncertainty around timing and slope of worldwide economic recovery after COVID-19 related economic shut-downs and effectiveness of production cuts by major oil producing countries, such as Saudi Arabia, Russia and the U.S. ~~In mid-April~~Since this trough in early 2020, ~~OPEC+ (the combination of historical OPEC members and other significant oil producers, such as Russia) announced production cuts of up to approximately 10 million barrels per day. However,~~global oil prices ~~remained at depressed levels~~increased later in 2020 and throughout ~~most of 2020, before modest improvement late in the year and into early 2021. As~~2021 primarily due to improved global oil demand ~~recovered in the second quarter of 2021,~~and lagging global oil supply ~~did not keep up, resulting~~due to oil production discipline from publicly traded oil producers and OPEC+ countries. These supply/demand dynamics have continued in ~~falling inventories~~2022 and have been exacerbated by the recent conflict between Russia and Ukraine and related sanctions on Russia, which decreased global fossil fuel supply even further. This has led to a significant increase in global oil prices ~~continuing into July 2021.~~to above $100 per barrel. In ~~July 2021, OPEC+ agreed~~response, several governments including the U.S. government under the Biden administration, have begun to ~~phase out 5.8 million barrels per day of~~release oil ~~production cuts by September 2022.~~

Alberta, Canada. In Canada, Western Canadian Select (WCS) crude is the benchmark price for our oil sands customers. Pricing for WCS is driven by several factors, including the underlying price for West Texas Intermediate (WTI) crude, the availability of transportation infrastructure (consisting of pipelines and crude by railcar), refinery blending requirements and governmental regulation. Historically, WCS has traded at a discount to WTI, creating a “WCS Differential,” due to transportation costs and capacity restrictions to move Canadian heavy oil production to refineries, primarily along the U.S. Gulf Coast. The WCS Differential has varied depending on the extent of transportation capacity availability.

Certain expansionary oil pipeline projects have the potential to both drive incremental demand for mobile assets and to improve take-away capacity for Canadian oil sands producers over the longer term. ~~While these pipeline projects, including~~The Enbridge Line 3 replacement project was completed at the end of 2021 and the Trans Mountain Pipeline (TMX)~~, have recently received incremental regulatory approvals, it~~ is ~~still not certain if any of the proposed pipeline projects will ultimately be completed. Certain segments of the TMX pipeline have resumed~~currently under construction ~~without conflict at the present time. Recent legal issues with the Canadian government~~ and ~~First Nation groups have been resolved for the time being.~~continues to progress towards completion. The Canadian federal government acquired the TMX pipeline in 2018, approved the expansion of the project and is currently working through a revised construction timeline to adjust for recent delays related to legal ~~hurdles and~~challenges, the COVID-19 ~~pandemic.~~pandemic, flooding along certain sections of the pipeline corridor and seasonal wildfires. As a result, the TMX pipeline construction has been delayed, and there is a risk that there could be future delays. Recent legal issues between the Canadian government and First Nation groups have been resolved for the time being and construction has resumed.

WCS prices in the second quarter of ~~2021~~2022 averaged ~~$53.27~~$92.89 per barrel compared to ~~$19.73~~an average of $53.27 in the second quarter of ~~2020.~~2021. The WCS Differential ~~decreased~~increased from ~~$15.35~~$14.12 per barrel at the end of the fourth quarter of ~~2020~~2021 to ~~$13.95~~$18.16 at the end of the second quarter of 2021. In 2018, the Government of Alberta announced it would mandate temporary curtailments of the province’s oil production. However, monthly production limits were put on hold in December 2020 until further notice, allowing operators to produce freely at their discretion while the government monitors production and inventory levels. Should

While oil prices have recently increased to multi-year highs, there is continued uncertainty around commodity price levels, including ~~about~~ the impact of COVID-19, ~~and commodity price volatility~~inflationary pressures and regulatory ~~complications~~implications on such prices, which could cause our Canadian oil sands and pipeline customers to reduce production, delay expansionary and maintenance spending and defer additional investments in their oil sands ~~assets. Additionally, if oil prices do not stabilize, the resulting impact could continue to negatively affect the value of our long-lived~~ assets.

British Columbia, Canada. Our Sitka Lodge supports the LNG Canada project and related pipeline projects (see discussion below). From a macroeconomic standpoint, LNG demand continued to grow despite the spread of COVID-19, ~~pandemic,~~ reinforcing the need for the global LNG industry to expand access to natural gas. Evolving government energy policies around the world have amplified support for cleaner energy supply, creating more opportunities for natural gas and LNG. ~~Accordingly,~~The conflict between Russia and Ukraine has further highlighted the ~~current view is~~need for secure natural gas supply globally, particularly in Europe. Accordingly, additional investment in LNG supply will be needed to meet the resulting expected long-term LNG demand growth.

Currently, Western Canada does not have any operational LNG export facilities. LNG Canada (LNGC), a joint venture among Shell Canada Energy, an affiliate of Royal Dutch Shell plc (40 percent), and affiliates of PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent) and Korea Gas Corporation (5 percent), is currently constructing a liquefaction and export facility in Kitimat, British Columbia (Kitimat LNG Facility). British Columbia LNG activity and related pipeline projects are a material driver of activity for our Sitka Lodge, as well as for our mobile assets, which are contracted to serve ~~several~~designated portions of the related pipeline construction activity. The actual timing of when revenue is realized from the Coastal ~~Gas Link~~GasLink (CGL) pipeline and Sitka Lodge contracts could be impacted by any delays in the construction of the Kitimat LNG Facility or the pipeline, such as protest blockades ~~and~~or COVID-19. Our current expectation is that our contracted commitments associated with the ~~COVID-19 pandemic.~~CGL pipeline project will be completed in late 2022 or early 2023. Any new delays in facility or pipeline construction may result in extensions to these dates.

In late March 2020, LNGC announced steps being taken to reduce the spread of COVID-19, including reduction of the workforce at the project site to essential personnel only. ~~This resulted in a reduction in occupancy at our Sitka Lodge during the second quarter of 2020, before returning to expected levels in the second half of 2020.~~ In late December 2020, British Columbia’s public health officer issued a health order limiting workforce size at all large industrial projects across the province, including LNGC. ~~This order once again~~These actions resulted in reduced occupancy at our Sitka Lodge beginning in ~~the first quarter of 2021. In~~ the second quarter of ~~2021, this~~2020. British Columbia's public health order was ~~repealed.~~phased out in the second quarter of 2021. It was replaced with less restrictive requirements focused on monitoring, allowing workforces to return to their optimal ~~sizes.~~sizes, which increased occupancy at our Sitka Lodge in the second half of 2021 and into 2022.

Australia.In Australia, 82% of our rooms are located in the Bowen Basin of Queensland, Australia and primarily serve met coal mines in that region. Met coal pricing and production growth in the Bowen Basin region is predominantly influenced by the levels of global steel production, which ~~increased~~decreased by ~~14.4% during the first half of 2021~~5.5% through June 2022 compared to the same period of ~~2020.~~2021. Analysts forecast steel production for 2022 to be subdued for the full year 2022 compared to 2021 with reduced residential construction activity offsetting stronger global infrastructure activity. As of July ~~26, 2021,~~25, 2022, met coal spot prices were ~~$215~~$230 per metric tonne. Long-term demand for steel is expected to be driven by global infrastructure spending and increased steel consumption per capita in developing economies, such as China and India, whose current consumption per capita is a fraction of developed countries. ~~In 2020, the impact of the outbreak of COVID-19~~

The Chinese embargo on Australian coal continues. However, Australian met coal producers have found new markets, including India and Europe, for their premium product. This led to a ~~high level~~rebalancing of ~~uncertainty for~~the market globally in 2021, with China relying on domestic production along with increased met coal imports from the U.S., Canada and Mongolia. With the backdrop of continuing strong steel demand ~~of iron ore~~ and met ~~coal. However, due~~coal supply constraints, the spot price for met coal surged to ~~strong global~~record highs through the second half of 2021 into early 2022. Since the historic highs in early 2022, prices have retreated to approximately $230 per tonne with a weakening in steel demand ~~supply disruptions~~coupled with Chinese lockdowns and concerns about a global economic slowdown. Analysts expect prices to remain stagnant, with some volatility in ~~other countries and limited COVID-19 cases~~prices in ~~Australia, Australian met coal and iron ore activity was relatively buoyant~~the near term, recovering to near $300 per tonne in ~~2020 and~~ the ~~first~~second half of ~~2021. An increase~~2022. As the trade impasse with China remains unresolved and as the Ukraine conflict continues, there remains volatility in ~~global infrastructure spending to stimulate economies is expected to support demand for raw materials, particularly met coal~~both the short and ~~iron ore.~~

Currently, China and Australia are in a trade dispute that has led to China implementing a trade embargo on Australian coal. China has historically accounted for approximately 22% of Australia’s met coal exports. The continuing uncertainty in the Chinese demand for Australian met coal has led to volatile Australian met coal spot pricing. The Chinese trade embargo and volatile Australian met coal spot pricing have created a shuffling of global export trade flows. If this dispute continues, it could continue to impact pricing volatility, and demand for Australian met coal and consequently lead to reduced occupancy at our Australian villages.medium term.

~~Our integrated services business provides catering~~tonne, which reflects a softening in prices since early 2022 as new COVID restrictions in China and ~~managed services to the mining industry~~weaker steel production impact demand. While there is anticipation of infrastructure-related construction activity improving in ~~Western Australia. We have contracts to manage customer-owned villages~~China, this factor will be tempered with a slowdown in ~~Western Australia which primarily support iron ore mines in addition to~~

U.S.Our U.S. business supports oil shale drilling and completion activity and is primarily tied to WTI oil prices in the U.S. shale formations in the Permian Basin, the Mid-Continent, the Bakken and the Rockies. ~~During 2019,~~In 2020, the U.S. oil rig count and associated completion activity decreased due to ~~the oil price decline in late 2018~~COVID-19 and early 2019 coupled with other market dynamics negatively impacting exploration and production (E&P) spending, finishing the year at 677 rigs. In 2020, the U.S. oil rig count and associated completion activity further decreased due to the global oil price decline discussed above. Only 267 oil rigs were active at the end of 2020. AsWith the recovery of oil prices, ~~began to recover in 2021,~~ oil rig count and drilling activity have recovered ~~somewhat,~~substantially, with ~~372~~594 oil rigs active at the end of the second quarter ~~2021.~~2022. The Permian Basin remains the most active U.S. unconventional play, representing ~~63%~~approximately 60% of the oil rigs active in the U.S. at the end of the second quarter of ~~2021.~~2022. The ~~lower~~increase in the U.S. rig count and ~~decline in~~ oil prices has only resulted in ~~decreased~~slight increases to U.S. oil production from ~~an average of 12.2 million barrels per day in 2019 to~~ an average of 11.3 million barrels per day in ~~2020 and~~2021 to an average of ~~11.2~~11.6 million barrels per day ~~through~~at the ~~first five months~~end of ~~2021.~~April 2022. As of July ~~23, 2021,~~22, 2022, there were ~~387~~599 active oil rigs in the U.S. (as measured by Bakerhughes.com). With the recent volatility in oil prices and a resulting reduction in spending by E&P companies, we exited the Bakken and reduced our presence in the Rockies regions for our U.S. mobile assets. Those assets were either sold or transported to our Permian Basin and Mid-Continent district locations. This process is underway and we expect it to be complete during the third quarter of 2021. U.S. oil shale drilling and completion activity will continue to be ~~dependent on sustained~~impacted by higher WTI oil prices, pipeline capacity, federal energy policies and ~~sufficient~~availability of capital to support ~~E&P~~exploration and production (E&P) drilling and completion plans. In addition, consolidation among our E&P customer base in the U.S. has historically created short-term spending and activity dislocations. Should the current trend of industry consolidation continue, we may see activity, utilization and occupancy declines in the near term.

Average Price (1)
Quarter
ended WTI
Crude
(per bbl) WCS
Crude
(per bbl) Hard
Coking Coal
(Met Coal)
(per tonne) Iron
Ore
(per tonne)
Third Quarter through July 26, 2021 $ 72.35 $ 58.77 $ 207.69 $ 209.68
6/30/2021 66.19 53.27 136.44 195.97
3/31/2021 58.13 46.28 127.95 159.83
12/31/2020 42.63 31.34 109.37 128.24
9/30/2020 40.90 31.15 113.30 116.10
6/30/2020 27.95 19.73 120.27 89.53
3/31/2020 45.38 27.92 156.17 83.57
12/30/2019 56.85 37.94 141.39 85.13
9/30/2019 56.40 43.88 160.25 101.41
6/30/2019 59.89 47.39 204.78 94.62
3/31/2019 54.87 44.49 203.30 79.26
12/31/2018 59.32 25.66 223.02 70.13
9/30/2018 69.61 41.58 188.46 61.91
6/30/2018 67.97 49.93 189.41 62.58


	Average Price (1)
Quarter ended	WTI Crude (per bbl)		WCS Crude (per bbl)		Hard Coking Coal (Met Coal) (per tonne)		Iron Ore (per tonne)
Third Quarter through July 25, 2022	$	100.61	$	78.70	$	261.31	$	100.47
6/30/2022	108.77		92.89		464.61		128.80
3/31/2022	95.17		82.04		474.83		129.46
12/31/2021	77.31		60.84		371.95		104.88
9/30/2021	70.54		57.58		258.41		164.90
6/30/2021	66.19		53.27		136.44		195.97
3/31/2021	58.13		46.28		127.95		159.83

Foreign Currency Exchange Rates. Exchange rates between the U.S. dollar and each of the Canadian dollar and the Australian dollar influence our U.S. dollar reported financial results. Our business has historically derived the vast majority of its revenues and operating income (loss) in Canada and Australia. These revenues and profits/losses are translated into U.S. dollars for U.S. GAAP financial reporting purposes. The following tables summarize the fluctuations in the exchange rates between the U.S. dollar and each of the Canadian dollar and the Australian dollar:


		As of					As of
		June 30, 2021	December 31, 2020	Change	Percentage		June 30, 2022	December 31, 2021	Change	Percentage
Canadian dollar to U.S. dollar	Canadian dollar to U.S. dollar	$0.807	$0.785	0.02	2.8%	Canadian dollar to U.S. dollar	$0.776	$0.789	($0.01)	(1.6)%
Australian dollar to U.S. dollar	Australian dollar to U.S. dollar	$0.750	$0.773	(0.02)	(3.0)%	Australian dollar to U.S. dollar	$0.690	$0.726	($0.04)	(4.9)%

Capital Expenditures. We continue to monitor the ~~COVID-19 global pandemic and the responses thereto, the~~ global economy, the price of and demand for crude oil, met coal, LNG and iron ore and the resultant impact on the capital spending plans of our customers, inflation, the COVID-19 global pandemic and the responses thereto in order to plan our business activities. We currently expect that our 2022 capital expenditures, including the capital expenditures associated with our recently announced 12-year contract renewal for our Wapasu Lodge in the Canadian oil sands, will be in the range of approximately $24 million to $29 million, compared to 2021 capital expenditures ~~exclusive~~ of ~~any business acquisitions, will total approximately $20 million, compared to 2020 capital expenditures of $10.1~~$15.6 million. We may adjust our capital expenditure plans in the future as we continue to monitor customer ~~activity and the impact of COVID-19.~~activity. See “Liquidity and Capital Resources” below for further discussion of ~~2021~~2022 capital expenditures.


		Three Months Ended June 30,							Three Months Ended June 30,
		2021		2020		Change			2022		2021		Change

		($ in thousands)							($ in thousands)
Revenues	Revenues							Revenues
Canada	Canada	$	83,281	$	52,986	$	30,295	Canada	$	109,023	$	83,281	$	25,742
Australia	Australia	64,019		57,071		6,948		Australia	67,820		64,019		3,801
U.S. and other	U.S. and other	6,876		4,645		2,231		U.S. and other	8,111		6,876		1,235
Total revenues	Total revenues	154,176		114,702		39,474		Total revenues	184,954		154,176		30,778
Costs and expenses	Costs and expenses							Costs and expenses
Cost of sales and services	Cost of sales and services							Cost of sales and services
Canada	Canada	57,342		42,465		14,877		Canada	75,009		57,342		17,667
Australia	Australia	44,895		34,913		9,982		Australia	47,692		44,895		2,797
U.S. and other	U.S. and other	5,765		5,755		10		U.S. and other	7,352		5,765		1,587
Total cost of sales and services	Total cost of sales and services	108,002		83,133		24,869		Total cost of sales and services	130,053		108,002		22,051
Selling, general and administrative expenses	Selling, general and administrative expenses	14,703		11,490		3,213		Selling, general and administrative expenses	17,682		14,703		2,979
Depreciation and amortization expense	Depreciation and amortization expense	21,377		22,205		(828)		Depreciation and amortization expense	23,083		21,377		1,706
Impairment expense	Impairment expense	7,935		—		7,935		Impairment expense	—		7,935		(7,935)
Other operating expense (income)		30		(285)		315
Other operating (income) expense								Other operating (income) expense	(106)		30		(136)
Total costs and expenses	Total costs and expenses	152,047		116,543		35,504		Total costs and expenses	170,712		152,047		18,665
Operating income (loss)		2,129		(1,841)		3,970
Operating income								Operating income	14,242		2,129		12,113

Interest expense, net	Interest expense, net	(3,399)		(3,850)		451		Interest expense, net	(2,606)		(3,399)		793
Other income	Other income	788		12,642		(11,854)		Other income	415		788		(373)
(Loss) income before income taxes		(482)		6,951		(7,433)
Income tax benefit (expense)		492		(122)		614
Income (loss) before income taxes								Income (loss) before income taxes	12,051		(482)		12,533
Income tax (expense) benefit								Income tax (expense) benefit	(1,821)		492		(2,313)
Net income	Net income	10		6,829		(6,819)		Net income	10,230		10		10,220
Less: Net income attributable to noncontrolling interest		(3)		222		(225)
Less: Net income (loss) attributable to noncontrolling interest								Less: Net income (loss) attributable to noncontrolling interest	662		(3)		665
Net income attributable to Civeo Corporation	Net income attributable to Civeo Corporation	13		6,607		(6,594)		Net income attributable to Civeo Corporation	9,568		13		9,555
Less: Dividends attributable to preferred shares	Less: Dividends attributable to preferred shares	480		471		9		Less: Dividends attributable to preferred shares	490		480		10
Net (loss) income attributable to Civeo common shareholders		$	(467)	$	6,136	$	(6,603)
Net income (loss) attributable to Civeo common shareholders								Net income (loss) attributable to Civeo common shareholders	$	9,078	$	(467)	$	9,545

Revenues. Consolidated revenues increased ~~$39.5~~$30.8 million, or ~~34%~~20%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. This increase was primarily due to (i) higher billed rooms at our Canadian ~~oil sands~~ lodges ~~related~~as occupancy in the second quarter of 2021 was negatively impacted by the COVID-19 pandemic, (ii) higher average daily rate at our Canadian lodges largely due to ~~turnaround activities by a number of customers, (ii)~~occupancy mix, (iii) increased mobile asset activity from a pipeline ~~project~~projects in Canada, ~~(iii)~~(iv) increased ~~occupancy~~activity at our Australian integrated services villages ~~(iv)~~in Western Australia and (v) increased activity ~~levels in certain U.S. markets and (v)~~at our Australian Bowen Basin owned villages. These items were partially offset by a ~~stronger~~weaker Australian and Canadian dollar relative to the U.S. dollar in the second quarter of ~~2021~~2022 compared to the second quarter of 2020. These items were partially offset by (i) reduced occupancy at our Canadian Sitka Lodge related to the COVID-19 pandemic and the British Columbia health order, (ii) reduced food service activity, as an overflow site supporting a LNG-related project in 2020 is no longer required, (iii) decreased activity at our Bowen Basin villages and Western Australia villages and (iv) decreased activity at our U.S. wellsite business.2021. See the discussion of segment results of operations below for further information.

Cost of Sales and Services. Our consolidated cost of sales and services increased ~~$24.9~~$22.1 million, or ~~30%~~20%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. This increase was primarily due to (i) ~~increased occupancy~~higher billed rooms at our Canadian ~~oil sands~~ lodges, ~~related to turnaround activities by a number of customers,~~ (ii) increased mobile asset activity from a pipeline ~~project~~projects in Canada, (iii) increased ~~occupancy~~activity at our Australian integrated services villages, (iv) increased activity at our Australian Bowen Basin owned villages and (v) increased cost of

temporary labor due to ongoing labor shortages in ~~Australia, (iv) increased activity levels in certain U.S. markets and (v)~~Australia. These items were partially offset by a ~~stronger~~weaker Australian and Canadian dollar relative to the U.S. dollar in the second quarter of ~~2021~~2022 compared to the second quarter of 2020. These items were partially offset by (i) reduced occupancy at our Canadian Sitka Lodge related to the COVID-19 pandemic and the British Columbia health order, (ii) reduced food service activity, as an overflow site supporting a LNG-related project in 2020 is no longer required, (iii) decreased activity at our Bowen Basin villages and Western Australia villages and (iv) decreased activity at our U.S. wellsite business.2021. See the discussion of segment results of operations below for further information.

Selling, General and Administrative Expenses. SG&A expense increased ~~$3.2~~$3.0 million, or ~~28%~~20%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. This increase was primarily due to higher ~~incentive compensation costs,~~ share-based compensation expense, travel and ~~compensation~~entertainment expense and information technology expense. In addition, SG&A expense increased approximately $1.0 million due to a stronger Australian and Canadian dollar relative to the U.S. dollar in the second quarter of 2021 compared to the second quarter of 2020. The increase in share-based compensation expense was due to ana relative increase in our stock price during the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. The increase in travel and entertainment expenses was largely a result of a return to more normalized travel expenses with the lifting of travel restrictions associated with COVID-19. This increase in information technology expense was related to implementation costs incurred in a cloud computing arrangement for our newly implemented human capital management system, which are being amortized through SG&A expense instead of depreciation and amortization expense.

Depreciation and Amortization Expense. Depreciation and amortization expense ~~decreased $0.8~~increased $1.7 million, or 4%8%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. The ~~decrease~~increase was primarily due to shortening the lives on certain assets ~~and intangibles~~in Canada, partially offset by certain assets in Canada becoming fully depreciated during ~~2020~~2021 and the ~~extension~~disposal of ~~the remaining life of certain long-lived assets~~our West Permian Lodge in the U.S. during the second quarter of 2020. These items were partially offset by a stronger Australian and Canadian dollar relative to the U.S. dollar in the second quarter of 2021 compared to the second quarter of 2020.2021.

~~Other Income.~~ ~~Consolidated other income decreased $11.9 million in the second quarter of~~ 2021, compared to the second quarter of 2020. The second quarter of 2021 included $0.7 million related to proceeds from the Canada Emergency Wage Subsidy (CEWS). The second quarter of 2020 included $4.7 million of other income associated with the settlement of a representations and warranties claim related to the Noralta acquisition, $6.2 million of other income related to proceeds from the CEWS and apartially offset by higher ~~gain~~interest rates on ~~sale of assets compared to the second quarter of 2020.~~credit facility borrowings.

Income Tax (Expense) Benefit. Our income tax ~~benefit~~expense for the three months ended June 30, ~~2021~~2022 totaled $1.8 million, or 15.1% of pretax income, compared to an income tax benefit of $0.5 million, or 102.1% of pretax loss, ~~compared to an income tax expense of $0.1 million, or 1.8% of pretax income,~~ for the three months ended June 30, ~~2020.~~2021. Our effective tax rate for both the three months ended June 30, ~~2021~~2022 and ~~June 30, 2020~~2021 was impacted by considering Canada and the U.S. loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision. ~~Under ASC~~Additionally, under Accounting Standards Codification 740-270, ~~"Accounting~~“Accounting for Income Taxes,"” the quarterly tax provision is based on our current estimate of the annual effective tax rate less the prior ~~quarter's year-to-date~~quarter’s year to date provision.

Other Comprehensive (Loss) Income. Other comprehensive ~~income decreased $31.0~~loss increased $18.5 million in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020,~~2021, primarily as a result of foreign currency translation adjustments due to changes in the Canadian and Australian dollar exchange rates compared to the U.S. dollar. The Canadian dollar exchange rate compared to the U.S. dollar ~~increased 1%~~decreased 3% in the second quarter of ~~2021~~2022 compared to a ~~4% decrease~~1% increase in the second quarter of ~~2020.~~2021. The Australian dollar exchange rate compared to the U.S. dollar decreased 1%8% in the second quarter of ~~2021~~2022 compared to a 2% decrease in the second quarter of ~~2020.~~2021.


		Three Months Ended June 30,										Three Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)										Revenues ($ in thousands)
Accommodation revenue (1)	Accommodation revenue (1)	$	69,759		$	40,204		$	29,555		Accommodation revenue (1)	$	79,431		$	69,759		$	9,672
Mobile facility rental revenue (2)	Mobile facility rental revenue (2)	8,666			6,072			2,594			Mobile facility rental revenue (2)	24,058			8,666			15,392
Food service and other services revenue (3)	Food service and other services revenue (3)	4,856			6,710			(1,854)			Food service and other services revenue (3)	5,534			4,856			678

Total revenues	Total revenues	$	83,281		$	52,986		$	30,295		Total revenues	$	109,023		$	83,281		$	25,742

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)										Cost of sales and services ($ in thousands)
Accommodation cost	Accommodation cost	$	44,992		$	28,598		$	16,394		Accommodation cost	$	53,108		$	44,992		$	8,116
Mobile facility rental cost	Mobile facility rental cost	5,644			5,285			359			Mobile facility rental cost	14,458			5,644			8,814
Food service and other services cost	Food service and other services cost	4,455			6,163			(1,708)			Food service and other services cost	4,976			4,455			521

Indirect other costs	Indirect other costs	2,251			2,419			(168)			Indirect other costs	2,467			2,251			216
Total cost of sales and services	Total cost of sales and services	$	57,342		$	42,465		$	14,877		Total cost of sales and services	$	75,009		$	57,342		$	17,667

Gross margin as a % of revenues	Gross margin as a % of revenues	31.1		%	19.9		%	11.3		%	Gross margin as a % of revenues	31.2		%	31.1		%	0.1		%

Average daily rate for lodges (4)	Average daily rate for lodges (4)	$	96		$	96		$	—		Average daily rate for lodges (4)	$	103		$	96		$	7

Total billed rooms for lodges (5)	Total billed rooms for lodges (5)	723,324			409,897			313,427			Total billed rooms for lodges (5)	771,267			723,324			47,943

Average Canadian dollar to U.S. dollar	Average Canadian dollar to U.S. dollar	$	0.815		$	0.722		$	0.093		Average Canadian dollar to U.S. dollar	$	0.784		$	0.815		$	(0.031)

Our Canadian segment reported revenues in the second quarter of ~~2021~~2022 that were ~~$30.3~~$25.7 million, or ~~57%~~31%, higher than the second quarter of ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for the Canadian dollar relative to the U.S. dollar by ~~13%~~4% in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020~~2021 resulted in a ~~$9.6~~$4.4 million period-over-period ~~increase~~decrease in revenues. Excluding the impact of the ~~stronger~~weaker Canadian exchange rate, the ~~segment experienced a 39% increase in revenues. This~~ increase was driven by (i) higher billed rooms at our ~~oil sands~~ lodges ~~related~~as occupancy in the second quarter of 2021 was negatively impacted by the COVID-19 pandemic, (ii) a higher average daily rate at our lodges largely due to ~~turnaround activities by a number of customers~~occupancy mix and by(iii) increased mobile asset activity from a pipeline project. Partially offsetting these items, revenue was lower at our Sitka Lodge related to the COVID-19 pandemic and the British Columbia health order and from food services activity, as an overflow site supporting a LNG-related project in 2020 is no longer required.projects.

Our Canadian segment cost of sales and services increased ~~$14.9~~$17.7 million, or ~~35%~~31%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for the Canadian dollar relative to the U.S. dollar by ~~13%~~4% in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020~~2021 resulted in a ~~$6.5~~$3.0 million period-over-period ~~increase~~decrease in cost of sales and services. Excluding the impact of the ~~stronger~~weaker Canadian exchange rate, the ~~increased~~increase in cost of sales and services was driven by increased occupancy at our ~~oil sands~~ lodges ~~related to turnaround activities by a number of customers~~ and by increased mobile asset activity from a pipeline project. Partially offsetting these items, cost of sales and services decreased at our Sitka Lodge related to the COVID-19 pandemic and the British Columbia health order and from food services activity, as an overflow site supporting a LNG-related project in 2020 is no longer required.projects.

Our Canadian segment gross margin as a percentage of revenues ~~increased~~was largely unchanged, increasing from ~~19.9% in the second quarter of 2020 to~~ 31.1% in the second quarter of ~~2021. This was primarily driven~~2021 to 31.2% in the second quarter of 2022. Accommodation gross margin as a percentage of revenues decreased from 35.5% in the second quarter of 2021 to 33.1% in the second quarter of 2022, as 2021 benefited more significantly from billed rooms that were unused by clients under take-or-pay arrangements. Mobile facility gross margin as a percentage of revenues increased ~~operating efficiencies at our oil sands lodges~~from 34.9% in the second quarter of 2021 to 39.9% in the second quarter of 2022, due to ~~higher occupancy and from our~~ increased mobile asset ~~activity.~~activity and related operating efficiencies.


		Three Months Ended June 30,										Three Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)										Revenues ($ in thousands)
Accommodation revenue (1)	Accommodation revenue (1)	$	37,780		$	34,933		$	2,847		Accommodation revenue (1)	$	39,052		$	37,780		$	1,272
Food service and other services revenue (2)	Food service and other services revenue (2)	26,239			$	22,138		$	4,101		Food service and other services revenue (2)	28,768			26,239			2,529
Total revenues	Total revenues	$	64,019		$	57,071		$	6,948		Total revenues	$	67,820		$	64,019		$	3,801

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)										Cost of sales and services ($ in thousands)
Accommodation cost	Accommodation cost	$	18,082		$	15,269		$	2,813		Accommodation cost	$	18,840		$	18,082		$	758
Food service and other services cost	Food service and other services cost	25,154			18,759			6,395			Food service and other services cost	27,008			25,154			1,854
Indirect other cost	Indirect other cost	1,659			885			774			Indirect other cost	1,844			1,659			185
Total cost of sales and services	Total cost of sales and services	$	44,895		$	34,913		$	9,982		Total cost of sales and services	$	47,692		$	44,895		$	2,797

Gross margin as a % of revenues	Gross margin as a % of revenues	29.9		%	38.8		%	(9.0)		%	Gross margin as a % of revenues	29.7		%	29.9		%	(0.2)		%

Average daily rate for villages (3)	Average daily rate for villages (3)	$	81		$	70		$	11		Average daily rate for villages (3)	$	77		$	81		$	(4)

Total billed rooms for villages (4)	Total billed rooms for villages (4)	466,298			502,392			(36,094)			Total billed rooms for villages (4)	505,310			466,298			39,012

Australian dollar to U.S. dollar	Australian dollar to U.S. dollar	$	0.770		$	0.658		$	0.113		Australian dollar to U.S. dollar	$	0.715		$	0.770		$	(0.056)

Our Australian segment reported revenues in the second quarter of ~~2021~~2022 that were ~~$6.9~~$3.8 million, or ~~12%~~6%, higher than the second quarter of ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for Australian dollars relative to the U.S. dollar by ~~17%~~7% in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020~~2021 resulted in a ~~$9.4~~$5.3 million period-over-period decrease in revenues. On a constant currency basis, the Australian segment experienced a 14% period-over-period increase in revenues. ~~Accordingly, the increase in the average daily rate is entirely attributable to the strengthening of the Australia dollar.~~ Excluding the impact of the ~~stronger~~weaker Australian exchange rate, the increase in the Australian segment ~~experienced a 4% decrease in revenues largely due to decreased activity at our Bowen Basin villages and Western Australia villages, partially offset~~was driven by increased ~~occupancy~~activity at our integrated services ~~villages.~~villages in Western Australia and Civeo owned villages in the Bowen Basin.

Our Australian segment cost of sales and services increased ~~$10.0~~$2.8 million, or ~~29%~~6%, in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for Australian dollars relative to the U.S. dollar by ~~17%~~7% in the second quarter of ~~2021~~2022 compared to the second quarter of ~~2020~~2021 resulted in a ~~$6.6~~$3.7 million period-over-period ~~increase~~decrease in cost of sales and services. Excluding the impact of the ~~stronger~~weaker Australian exchange rate, the increase in cost of sales and services was largely driven by ~~the~~(i) increased ~~occupancy~~activity at our integrated services villages in Western Australia, (ii) increased activity our Civeo owned villages in the Bowen Basin and, to a lesser extent, (iii) increased costs of temporary labor due to ongoing labor shortages.

Our Australian segment gross margin as a percentage of revenues decreased to 29.7% in the second quarter of 2022 from 29.9% in the second quarter of ~~2021 from 38.8% in the second quarter of 2020.~~2021. This was primarily driven by higher revenue in our integrated services business, which has a service-only business model, and therefore results in lower overall gross margins than the accommodation business. Reduced occupancy at the Bowen Basin villages and Western Australia villages has also impacted our Australian gross margin. Segment gross margin has also been negatively impacted by increased staff costs as a result of a hospitality labor shortage in Australia which has been exacerbated by state and international border closures due to COVID-19. State and international border closures have affected the number of staff available which has subsequently led to an increased reliance on more expensive temporary labor hire resources and has placed upward pressure on wages for permanent staff as competitors compete for a small pool of labor.


		Three Months Ended June 30,										Three Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)	$	6,876		$	4,645		$	2,231		Revenues ($ in thousands)	$	8,111		$	6,876		$	1,235

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)	$	5,765		$	5,755		$	10		Cost of sales and services ($ in thousands)	$	7,352		$	5,765		$	1,587

Gross margin as a % of revenues	Gross margin as a % of revenues	16.2		%	(23.9)		%	40.1		%	Gross margin as a % of revenues	9.4		%	16.2		%	(6.8)		%

Our U.S. segment reported revenues in the second quarter of ~~2021~~2022 that were ~~$2.2~~$1.2 million, or ~~48%~~18%, higher than the second quarter of ~~2020.~~2021. This increase was due to ~~increased occupancy at~~greater U.S. drilling activity positively impacting our wellsite business. This increase was partially offset by reduced revenue from our former West Permian ~~Killdeer~~Lodge, which operated in the second quarter of 2021 and ~~Acadian Acres lodges~~was sold in the fourth quarter of 2021, and ~~increased~~reduced activity in our offshore business ~~from fabrication and unit sales, partially offset by reduced U.S. drilling activity affecting our wellsite business.~~as certain projects were completed in the second quarter of 2021 that did not recur to the same extent in 2022.

Our U.S. segment cost of sales and services ~~slightly~~ increased $1.6 million, or 28%, in the second quarter of 2022 compared to the second quarter of 2021. This increase was due to greater U.S. drilling activity positively impacting our wellsite business, partially offset by lower costs in our offshore business as certain projects were completed in the second quarter of 2021 ~~compared~~that did not recur to the ~~second quarter of 2020. This increase was due to greater activity~~same extent in ~~our offshore business, partially offset by reduced costs in our wellsite business attributable to its reduced activity.~~2022.

Our U.S. segment gross margin as a percentage of revenues ~~increased~~decreased from ~~(23.9)% in the second quarter of 2020 to~~ 16.2% in the second quarter of 2021 to 9.4% in the second quarter of 2022 primarily due to ~~increased occupancy at~~ our former West Permian ~~Killdeer~~Lodge, which operated in the second quarter of 2021 and ~~Acadian Acres lodges~~was sold in the fourth quarter of 2021, and inreduced margins from our offshore business as the second quarter of 2021 was positively impacted by higher margins from product ~~sales,~~sales. These were partially offset by ~~reduced~~improved margins in our wellsite business due to operating efficiencies at ~~lower~~higher activity ~~levels in our wellsite business.~~


		Six Months Ended June 30,							Six Months Ended June 30,
		2021		2020		Change			2022		2021		Change

		($ in thousands)							($ in thousands)
Revenues	Revenues							Revenues
Canada	Canada	$	145,166	$	132,334	$	12,832	Canada	$	204,975	$	145,166	$	59,809
Australia	Australia	123,656		106,184		17,472		Australia	131,349		123,656		7,693
U.S. and other	U.S. and other	10,784		14,976		(4,192)		U.S. and other	14,308		10,784		3,524
Total revenues	Total revenues	279,606		253,494		26,112		Total revenues	350,632		279,606		71,026
Costs and expenses	Costs and expenses							Costs and expenses
Cost of sales and services	Cost of sales and services							Cost of sales and services
Canada	Canada	109,227		106,737		2,490		Canada	150,215		109,227		40,988
Australia	Australia	87,798		64,466		23,332		Australia	92,206		87,798		4,408
U.S. and other	U.S. and other	10,787		15,243		(4,456)		U.S. and other	13,475		10,787		2,688
Total cost of sales and services	Total cost of sales and services	207,812		186,446		21,366		Total cost of sales and services	255,896		207,812		48,084
Selling, general and administrative expenses	Selling, general and administrative expenses	28,884		25,427		3,457		Selling, general and administrative expenses	32,895		28,884		4,011
Depreciation and amortization expense	Depreciation and amortization expense	42,646		47,707		(5,061)		Depreciation and amortization expense	43,210		42,646		564
Impairment expense	Impairment expense	7,935		144,120		(136,185)		Impairment expense	—		7,935		(7,935)
Other operating income		101		704		(603)
Other operating expense								Other operating expense	152		101		51
Total costs and expenses	Total costs and expenses	287,378		404,404		(117,026)		Total costs and expenses	332,153		287,378		44,775
Operating loss		(7,772)		(150,910)		143,138
Operating income (loss)								Operating income (loss)	18,479		(7,772)		26,251

Interest expense, net	Interest expense, net	(6,761)		(9,429)		2,668		Interest expense, net	(5,074)		(6,761)		1,687
Other income	Other income	5,702		12,667		(6,965)		Other income	2,111		5,702		(3,591)
Loss before income taxes		(8,831)		(147,672)		138,841
Income tax (expense) benefit		(584)		8,689		(9,273)
Net loss		(9,415)		(138,983)		129,568
Income (loss) before income taxes								Income (loss) before income taxes	15,516		(8,831)		24,347
Income tax (expense)								Income tax (expense)	(3,378)		(584)		(2,794)
Net income (loss)								Net income (loss)	12,138		(9,415)		21,553
Less: Net income attributable to noncontrolling interest	Less: Net income attributable to noncontrolling interest	56		480		(424)		Less: Net income attributable to noncontrolling interest	1,160		56		1,104
Net loss attributable to Civeo Corporation		(9,471)		(139,463)		129,992
Net income (loss) attributable to Civeo Corporation								Net income (loss) attributable to Civeo Corporation	10,978		(9,471)		20,449
Less: Dividends attributable to preferred shares	Less: Dividends attributable to preferred shares	958		939		19		Less: Dividends attributable to preferred shares	977		958		19
Net loss attributable to Civeo common shareholders		$	(10,429)	$	(140,402)	$	129,973
Net income (loss) attributable to Civeo common shareholders								Net income (loss) attributable to Civeo common shareholders	$	10,001	$	(10,429)	$	20,430

We reported net loss attributable to Civeo for the six months ended June 30, 2020 of $140.4 million, or $9.96 per diluted share. As further discussed below, net loss included (i) a $93.6 million pre-tax loss resulting from the impairment of goodwill in our Canada segment included in Impairment expense, (ii) a $38.1 million pre-tax loss resulting from the impairment of long-lived assets in our Canada segment included in Impairment expense and (iii) a $12.4 million pre-tax loss resulting from the impairment of long-lived assets in our U.S. segment included in Impairment expense. Net loss was partially offset by $4.7 million of income associated with the settlement of a representations and warranties claim related to the Noralta acquisition included in Other income.

Revenues.Consolidated revenues increased ~~$26.1~~$71.0 million, or ~~10%~~25%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. This increase was primarily driven by (i) higher billed rooms at our Canadian lodges as occupancy in the first half of 2021 was negatively impacted by the COVID-19 pandemic, (ii) higher average daily rate at our Canadian lodges largely due to ~~(i)~~occupancy mix, (iii) increased mobile asset activity from a pipeline ~~project~~projects in Canada, ~~(ii)~~(iv) increased ~~occupancy~~activity at our Australian Civeo owned villages in the Bowen Basin and (v) increased activity at our integrated services villages ~~and (iii)~~in Western Australia. These items were partially offset by a ~~stronger~~weaker Australian and Canadian dollar relative to the U.S. dollar in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, 2020. These items were partially offset by (i) reduced food service activity, as an overflow site supporting a LNG-related project in 2020 is no longer required, (ii) decreased activity at our Bowen Basin villages and Western Australia villages and (iii) decreased activity at our U.S. wellsite business.2021. See the discussion of segment results of operations below for further information.

Cost of Sales and Services. Our consolidated cost of sales and services increased ~~$21.4 million~~$48.1 million, or ~~11%~~23%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. This increase was primarily due to (i) higher billed rooms at our Canadian lodges, (ii) increased mobile asset activity from a pipeline ~~project~~projects in Canada, ~~(ii)~~(iii) increased ~~occupancy~~activity at our Australian Civeo owned villages in the Bowen Basin, (iv) increased activity at our integrated services villages in Western Australia and (v) increased cost of temporary labor due to ongoing labor shortages in ~~Australia and (iii)~~Australia. These items were partially offset by a ~~stronger~~weaker Australian and Canadian dollar relative to the U.S. dollar in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, 2020. These items were partially offset by (i) reduced food service activity, as an overflow site supporting a LNG-related project in 2020 is no longer required, (ii) decreased activity at our Bowen Basin villages and Western Australia villages and (iii) lower activity in certain markets in the U.S.2021. See the discussion of segment results of operations below for further information.

Selling, General and Administrative ~~Expenses.~~Expenses. SG&A expense increased ~~$3.5~~$4.0 million, or 14%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. This increase was primarily due to higher ~~incentive compensation costs,~~ share-based compensation expense, travel and ~~compensation~~entertainment expense ~~partially offset by lower professional fees.~~and information technology expense. The increase in share-based compensation expense was due to ana relative increase in our stock price during ~~2021~~the six months ended June 30, 2022 compared to ~~2020.~~the six months ended June 30, 2021. The increase in travel and entertainment expenses was largely a result of a return to more normalized travel expenses with the lifting of travel restrictions associated with COVID-19. The increase in information technology expense was related to implementation costs incurred in a cloud computing arrangement for our newly implemented human capital management system, which are being amortized through SG&A expense instead of depreciation and amortization expense.

Depreciation and Amortization Expense. Depreciation and amortization expense ~~decreased $5.1~~increased $0.6 million, or ~~11%~~1%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. The ~~decrease~~increase was primarily due to ~~(i)~~shortening the lives on certain assets ~~and intangibles~~in Canada, partially offset by assets in Canada becoming fully depreciated during ~~2020, (ii) the impairment of certain long-lived assets in Canada~~2021 and the ~~U.S. during the first quarter~~disposal of ~~2020 and (iii) the extension of the remaining life of certain long-lived assets~~our West Permian Lodge in the U.S. during the second quarter of 2020. These items were partially offset by a stronger Australian and Canadian dollar relative to the U.S. dollar in the six months ended June 30, 2021 compared to the six months ended June 30, 2020.2021.

Operating ~~Loss.~~Income (Loss). Consolidated operating ~~loss decreased $143.1~~income increased $26.3 million, or ~~95%~~338%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020,~~2021, primarily due to higher activity levels in Canada and Australia in the six months ended June 30, 2022 compared to the six months ended June 30, 2021 and lower impairment expense ~~of goodwill and long-lived assets~~ in ~~2020.~~Australia in the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

Other Income. Consolidated other income decreased ~~$7.0~~$3.6 million in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. The six months ended June 30, 2022 included lower gain on the sale of assets primarily related to various mobile assets across Canada, Australia and the U.S. The six months ended June 30, 2021 included $3.5 million related to proceeds from the ~~CEWS~~Canada Emergency Wage Subsidy (CEWS) and a higher gain on the sale of assets primarily related to the sale of a manufacturing facility and mobile assets in Canada. The six months ended June 30, 2020 included $4.7 million of other income associated with the settlement of a representations and warranties claim related to the Noralta acquisition, $6.2 million of other income related to proceeds from the CEWS and a gain on sale of assets related to unutilized lodge assets in Canada.

Income Tax (Expense) Benefit. Our income tax expense for the six months ended June 30, ~~2021~~2022 totaled ~~$0.6~~$3.4 million, or ~~(6.6)%~~21.8% of pretax ~~loss,~~income, compared to an income tax ~~benefit~~expense of ~~$8.7~~$0.6 million, or ~~5.9%~~(6.6)% of pretax loss, for the six months ended June 30, ~~2020.~~2021. Our effective tax rate for both the six months ended June 30, ~~2021~~2022 and ~~June 30, 2020~~2021 was impacted by considering Canada and the U.S. loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision. Additionally, our effective tax rate for the six months ended June 30, 2020 was impacted by a deferred tax benefit of $9.6 million offset by an increase of $0.7 million in the valuation allowance in Canada.


		Six Months Ended June 30,										Six Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)										Revenues ($ in thousands)
Accommodation revenue (1)	Accommodation revenue (1)	$	116,289		$	106,270		$	10,019		Accommodation revenue (1)	$	146,625		$	116,289		$	30,336
Mobile facility rental revenue (2)	Mobile facility rental revenue (2)	19,165			8,580			10,585			Mobile facility rental revenue (2)	48,076			19,165			28,911
Food service and other services revenue (3)	Food service and other services revenue (3)	9,712			17,484			(7,772)			Food service and other services revenue (3)	10,274			9,712			562

Total revenues	Total revenues	$	145,166		$	132,334		$	12,832		Total revenues	$	204,975		$	145,166		$	59,809

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)										Cost of sales and services ($ in thousands)
Accommodation cost	Accommodation cost	$	83,328		$	76,653		$	6,675		Accommodation cost	$	106,235		$	83,328		$	22,907
Mobile facility rental cost	Mobile facility rental cost	12,418			8,542			3,876			Mobile facility rental cost	29,342			12,418			16,924
Food service and other services cost	Food service and other services cost	8,576			16,178			(7,602)			Food service and other services cost	9,335			8,576			759

Indirect other costs	Indirect other costs	4,905			5,364			(459)			Indirect other costs	5,303			4,905			398
Total cost of sales and services	Total cost of sales and services	$	109,227		$	106,737		$	2,490		Total cost of sales and services	$	150,215		$	109,227		$	40,988

Gross margin as a % of revenues	Gross margin as a % of revenues	24.8		%	19.3		%	5.4		%	Gross margin as a % of revenues	26.7		%	24.8		%	2.0		%

Average daily rate for lodges (4)	Average daily rate for lodges (4)	$	97		$	94		$	3		Average daily rate for lodges (4)	$	104		$	97		$	7

Total billed rooms for lodges (5)	Total billed rooms for lodges (5)	1,203,390			1,118,220			85,170			Total billed rooms for lodges (5)	1,406,822			1,203,390			203,432

Average Canadian dollar to U.S. dollar	Average Canadian dollar to U.S. dollar	$	0.802		$	0.733		$	0.069		Average Canadian dollar to U.S. dollar	$	0.787		$	0.802		$	(0.015)

Our Canadian segment reported revenues in the six months ended June 30, ~~2021~~2022 that were ~~$12.8~~$59.8 million, or ~~10%~~41%, higher than the six months ended June 30, ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for the Canadian dollar relative to the U.S. dollar by 9%2% in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020~~2021 resulted in a ~~$13.3~~$4.5 million period-over-period ~~increase~~decrease in revenues. Excluding the impact of the ~~stronger~~weaker Canadian exchange rate, ~~revenue remained relatively flat; however, it~~the increase was ~~positively impacted~~driven by (i) higher billed rooms at our ~~oil sands~~ lodges ~~related~~as occupancy in the first half of 2021 was negatively impacted by the COVID-19 pandemic, (ii) a higher average daily rate at our lodges largely due to ~~turnaround activities by a number of customers~~occupancy mix and by(iii) increased mobile asset activity from a pipeline project. Partially offsetting these increases were reduced billed rooms at our Sitka Lodge related to the COVID-19 pandemic and the British Columbia health order and reduced food services activity, as an overflow site supporting a LNG-related project in 2020 is no longer required.projects.

Our Canadian segment cost of sales and services increased ~~$2.5~~$41.0 million, or 2%38%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for the Canadian dollar relative to the U.S. dollar by 9%2% in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020~~2021 resulted in a ~~$9.6~~$3.0 million period-over-period ~~increase~~decrease in cost of sales and services. Excluding the impact of the ~~stronger~~weaker Canadian exchange rate, the ~~decreased~~increase in cost of sales and services was driven by ~~reduced food services activity, as an overflow site supporting a LNG-related project in 2020 is no longer required and reduced activity~~increased occupancy at our ~~Sitka Lodge related to the COVID-19 pandemic~~lodges and ~~British Columbia health order. Partially offsetting these decreases were~~ increased mobile asset activity from a pipeline ~~project and increased activity at our oil sands lodges related to turnaround activities by a number of customers.~~projects.

Our Canadian segment gross margin as a percentage of revenues increased from ~~19.3% in the six months ended June 30, 2020 to~~ 24.8% in the six months ended June 30, ~~2021.~~2021 to 26.7% in the six months ended June 30, 2022. This was primarily driven by increased mobile asset activity and related operating efficiencies. Accommodation gross margins were maintained at 28% with an increase in margins at our oil sands lodges related to turnaround activities by a number of customers and related operating efficiencies at these higher levels, offset by a reduction in margins at our Sitka Lodge related to reduced operating efficiencies at the lower occupancy levels experienced due to the COVID-19 pandemic and the British Columbia health order.


		Six Months Ended June 30,										Six Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)										Revenues ($ in thousands)
Accommodation revenue (1)	Accommodation revenue (1)	$	71,455		$	67,518		$	3,937		Accommodation revenue (1)	$	76,651		$	71,455		$	5,196
Food service and other services revenue (2)	Food service and other services revenue (2)	52,201			$	38,666		$	13,535		Food service and other services revenue (2)	54,698			52,201			2,497
Total revenues	Total revenues	$	123,656		$	106,184		$	17,472		Total revenues	$	131,349		$	123,656		$	7,693

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)										Cost of sales and services ($ in thousands)
Accommodation cost	Accommodation cost	$	35,187		$	30,264		$	4,923		Accommodation cost	$	37,247		$	35,187		$	2,060
Food service and other services cost	Food service and other services cost	49,451			32,466			16,985			Food service and other services cost	51,371			49,451			1,920
Indirect other cost	Indirect other cost	3,160			1,736			1,424			Indirect other cost	3,588			3,160			428
Total cost of sales and services	Total cost of sales and services	$	87,798		$	64,466		$	23,332		Total cost of sales and services	$	92,206		$	87,798		$	4,408

Gross margin as a % of revenues	Gross margin as a % of revenues	29.0		%	39.3		%	(10.3)		%	Gross margin as a % of revenues	29.8		%	29.0		%	0.8		%

Average daily rate for villages (3)	Average daily rate for villages (3)	$	80		$	69		$	11		Average daily rate for villages (3)	$	78		$	80		$	(2)

Total billed rooms for villages (4)	Total billed rooms for villages (4)	890,964			974,232			(83,268)			Total billed rooms for villages (4)	979,784			890,964			88,820

Australian dollar to U.S. dollar	Australian dollar to U.S. dollar	$	0.772		$	0.658		$	0.114		Australian dollar to U.S. dollar	$	0.719		$	0.772		$	(0.052)

Our Australian segment reported revenues in the six months ended June 30, ~~2021~~2022 that were ~~$17.5~~$7.7 million, or ~~17%~~6%, higher than the six months ended June 30, ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for Australian dollars relative to the U.S. dollar by ~~17%~~7% in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020~~2021 resulted in a ~~$18.3~~$9.5 million period-over-period ~~increase~~decrease in revenues. ~~Accordingly, the increase in the average daily rate is entirely attributable to the strengthening of the Australia dollar.~~ Excluding the impact of the ~~stronger~~weaker Australian exchange rate, the increase in the Australian segment ~~experienced a 1% decrease in revenues largely due to decreased~~was driven by increased activity at our Civeo owned villages in the Bowen Basin ~~villages~~ and ~~Western Australia villages, partially offset by increased occupancy at~~ our integrated services ~~villages.~~villages in Western Australia.

Our Australian segment cost of sales and services increased ~~$23.3~~$4.4 million, or ~~36%~~5%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. The ~~strengthening~~weakening of the average exchange rate for Australian dollars relative to the U.S. dollar by ~~17%~~7% in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020~~2021 resulted in a ~~$13.0~~$6.7 million period-over-period ~~increase~~decrease in cost of sales and services. Excluding the impact of the ~~stronger~~weaker Australian exchange rate, the increase in cost of sales and services was largely driven by (i) increased ~~occupancy~~activity at our Bowen Basin villages, (ii) increased activity at our integrated services villages in Western Australia and (iii) increased costs of temporary labor due to ongoing labor shortages.

Our Australian segment gross margin as a percentage of revenues ~~decreased~~increased to ~~29%~~29.8% in the six months ended June 30, ~~2021~~2022 from ~~39.3%~~29.0% in the six months ended June 30, ~~2020.~~2021. This was primarily driven by ~~our integrated services business, which has a service-only business model, and therefore results~~improved margins at Civeo owned villages in ~~lower overall gross margins than the accommodation business. Reduced occupancy at~~ the Bowen Basin ~~villages and Western Australia villages has also impacted our Australian segment gross margin. Segment gross margin has also been negatively impacted by increased staff costs~~ as a result of ~~a hospitality labor shortage in Australia which has been exacerbated by state and international border closures due to COVID-19. State and~~increased occupancy.


		Six Months Ended June 30,										Six Months Ended June 30,
		2021			2020			Change				2022			2021			Change
Revenues ($ in thousands)	Revenues ($ in thousands)	$	10,784		$	14,976		$	(4,192)		Revenues ($ in thousands)	$	14,308		$	10,784		$	3,524

Cost of sales and services ($ in thousands)	Cost of sales and services ($ in thousands)	$	10,787		$	15,243		$	(4,456)		Cost of sales and services ($ in thousands)	$	13,475		$	10,787		$	2,688

Gross margin as a % of revenues	Gross margin as a % of revenues	0.0		%	(1.8)		%	1.8		%	Gross margin as a % of revenues	5.8		%	—		%	5.8		%

Our U.S. segment reported revenues in the six months ended June 30, ~~2021~~2022 that were ~~$4.2~~$3.5 million, or ~~28%~~33%, ~~lower~~higher than the six months ended June 30, ~~2020.~~2021. This ~~decrease~~increase was due to ~~reduced~~greater U.S. drilling activity ~~affecting~~positively impacting our wellsite business, ~~and reduced activity in our offshore fabrication business as a project was completed in the first half of 2020 that did not recur to the same extent in 2021. These decreases were~~ partially offset by ~~increased activity at~~reduced revenue from our ~~Acadian Acres lodge related to a client’s turnaround activity.~~former West Permian Lodge, which operated in the second quarter of 2021 and was sold in the fourth quarter of 2021.

Our U.S. segment cost of sales and services ~~decreased $4.5~~increased $2.7 million, or ~~29%~~25%, in the six months ended June 30, ~~2021~~2022 compared to the six months ended June 30, ~~2020.~~2021. This ~~decrease~~increase was due to ~~reduced~~greater U.S. drilling activity ~~affecting~~positively impacting our wellsite business, partially offset by reduced ~~activity in~~costs from our ~~offshore fabrication business as a project was completed~~former West Permian Lodge, which operated in the ~~first half~~second quarter of ~~2020 that did not recur to the same extent in~~ 2021 and ~~reduced costs at our West Permian lodge under a new customer contract.~~was sold in the fourth quarter of 2021.

Our U.S. segment gross margin as a percentage of revenues increased ~~1.8%~~5.8% from the six months ended June 30, ~~2020~~2021 to the six months ended June 30, ~~2021,~~2022 primarily due to improved margins ~~at our West Permian lodge under a new customer contract and~~ in our ~~offshore~~wellsite business ~~from product sales,~~due to operating efficiencies at higher activity levels, partially offset by ~~reduced operating efficiencies at lower activity levels~~our former West Permian Lodge, which operated in ~~our wellsite business.~~the second quarter of 2021 and was sold in the fourth quarter of 2021.

Our primary liquidity needs are to fund capital expenditures, which in the past have included expanding and improving our hospitality services, developing new lodges and villages, purchasing or leasing land, and for general working capital needs. In addition, capital has been used to repay debt, repurchase our common shares and fund strategic business acquisitions. In the future, capital may be required to move lodges from one site to another. Historically, our primary sources of funds have been available cash, cash flow from operations, borrowings under our Credit Agreement and proceeds from equity issuances. In the future, we may seek to access the debt and equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions, refinance debt or retire preferred shares.

~~(1)~~As of June 30, 2021, we had one bank guarantee facility totaling A$1.0 million. As of December 31, 2020, we had two bank guarantee facilities totaling $3.0 million. We had bank guarantees of A$0.8 million outstanding under the facilities as of both June 30, 2021 and December 31, 2020.


	June 30, 2022		December 31, 2021
Lender commitments	$	200,000	$	200,000

Borrowings against revolving credit capacity	(108,078)		(112,026)
Outstanding letters of credit	(1,420)		(1,439)
Unused availability	90,502		86,535
Cash and cash equivalents	4,782		6,282
Total available liquidity	$	95,284	$	92,817

~~2020,~~ $13.8 million was used in working capital, ~~and $2.9 million was provided by working capital,~~ respectively. The ~~decrease~~increase in cash ~~provided by~~used in working capital in ~~2021~~2022 compared to ~~2020~~2021 is largely due to ~~increased~~the timing of customer payments and revenue recognition as it relates to mobile asset activity in Canada and decreased accounts ~~receivable~~payable and accrual balances, ~~in Canada.~~substantially due to timing of payments during the six months ended June 30, 2022 compared to the six months ended June 30, 2021.

Cash was used in investing activities during the six months ended June 30, 2022 in the amount of $5.2 million, compared to cash provided by investing activities during the six months ended June 30, 2021 in the amount of $0.5 ~~million, compared to cash provided by investing activities during the six months ended June 30, 2020 in the amount of $2.7~~ million. The decrease in cash provided by investing activities was primarily due to ~~$4.7 million~~the receipt of other income associated with the settlement of a representations and warranties claim related to the Noralta acquisition and lower capital expenditures during the six months ended June 30, 2020, partially offset by higher proceeds from the sale of our manufacturing facility

We expect our capital expenditures for ~~2021, exclusive of any business acquisitions or any growth capital expenditures,~~2022 to be ~~approximately $20~~in the range of $24 million to $29 million, which excludes any unannounced and uncommitted projects, the spending for which is contingent on obtaining customer ~~contracts.~~contracts or commitments. Our 2022 capital expenditures estimate includes the capital expenditures associated with our recently announced 12-year contract renewal for our Wapasu Lodge in the Canadian oil sands. Whether planned expenditures will actually be spent in ~~2021~~2022 depends on industry conditions, project approvals and schedules, customer room commitments and project and construction timing. We expect to fund these capital expenditures with available cash, cash flow from operations and revolving credit borrowings under our Credit Agreement. The foregoing capital expenditure forecast does not include any funds for strategic acquisitions, which we could pursue should the transaction economics be attractive enough to us compared to the current capital allocation priorities of debt ~~reduction.~~reduction and return of capital to shareholders. We continue to monitor the ~~COVID-19 global pandemic and the responses thereto, the~~ global economy, the ~~prices~~price of and demand for crude oil, met coal, LNG and iron ore and the resultant impact on the capital spending plans of our customers, inflation, the COVID-19 global pandemic and the responses thereto in order to plan our business activities, and we may adjust our capital expenditure plans in the future.

Net cash of $19.9 million was used in financing activities during the six months ended June 30, 2022 primarily due to net repayments under our revolving credit facilities of $2.6 million, term loan repayments of $15.8 million, $0.5 million used to repurchase our common shares and $1.0 million used to settle tax obligations on vested shares under our share-based compensation plans. Net cash of $31.1 million was used in financing activities during the six months ended June 30, 2021 primarily due to net repayments under our revolving credit facilities of $12.1 million, repayments of term loan borrowings of $17.9 million and $1.1 million used to settle tax obligations on vested shares under our share-based compensation plans. Net cash of $43.6 million was used in financing activities during the six months ended June 30, 2020 primarily due to net repayments under our revolving credit facilities of $25.6 million, repayments of term loan borrowings of $16.5 million and $1.5 million used to settle tax obligations on vested shares under our share-based compensation plans.

We believe that cash on hand and cash flow from operations will be sufficient to meet our anticipated liquidity needs infor the ~~coming~~next 12 months. If our plans or assumptions change, including as a result of the impact of COVID-19 or ~~the decline~~changes in ~~the~~ price of and demand for oil, or are inaccurate, or if we make acquisitions, we may need to raise additional capital. Acquisitions have been, and our management believes acquisitions will continue to be, an element of our long-term business strategy. The timing, size or success of any acquisition effort and the associated potential capital commitments are unpredictable and uncertain. We may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances or may issue equity directly to the sellers. Our ability to obtain capital for additional projects to implement our growth strategy over the longer term will depend on our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global financial markets and other factors, many of which are beyond our control. In addition, any additional debt service requirements we take on could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the issuance of additional equity securities could result in significant dilution to shareholders.

The declaration and amount of all potential future dividends will be at the discretion of our Board ~~of Directors~~ and will depend upon many factors, including our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements of our business, covenants associated with certain debt obligations, legal requirements, regulatory constraints, industry practice and other factors the Board ~~of Directors~~ deems relevant. In addition, our ability to pay cash dividends on common or preferred shares is limited by covenants in the Credit Agreement. Future agreements may also limit our ability to pay dividends, and we may incur incremental taxes if we are required to repatriate foreign earnings to pay such dividends. If we elect to pay dividends in the future, the amount per share of our dividend payments may be changed, or dividends may be suspended, without advance notice. The likelihood that dividends will be reduced or suspended is increased during periods of market weakness. There can be no assurance that we will pay a dividend in the future.

The preferred shares we issued in the Noralta acquisition are entitled to receive a 2% annual dividend on the liquidation preference (initially $10,000 per share), paid quarterly in cash or, at our option, by increasing the preferred shares’ liquidation preference, or any combination thereof. Quarterly dividends were paid in-kind on June 30, ~~2021,~~2022, thereby increasing the liquidation preference to ~~$10,669~~$10,884 per share as of June 30, ~~2021.~~2022. We currently expect to pay dividends on the preferred shares ~~for the foreseeable future~~ through an increase in liquidation preference rather than ~~cash.~~

For a discussion of the critical accounting policies and estimates that we use in the preparation of our consolidated financial statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. These estimates require significant judgments, assumptions and estimates. We have discussed the development, selection and disclosure of these critical accounting policies and estimates with the audit committee of our Board of Directors. There have been no material changes to the judgments, assumptions and estimates upon which our critical accounting estimates are based.

We have credit facilities that are subject to the risk of higher interest charges associated with increases in interest rates. As of June 30, ~~2021,~~2022, we had ~~$226.8~~$154.6 million of outstanding floating-rate obligations under our credit facilities. These floating-rate obligations expose us to the risk of increased interest expense in the event of increases in short-term interest rates. If floating interest rates increased by 100 basis points, our consolidated interest expense would increase by approximately ~~$2.3~~$1.5 million annually, based on our floating-rate debt obligations and interest rates in effect as of June 30, ~~2021.~~2022.

Our operations are conducted in various countries around the world, and we receive revenue and pay expenses from these operations in a number of different currencies. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in (i) currencies other than the U.S. dollar, which is our reporting currency, or (ii) the functional currency of our subsidiaries, which is not necessarily the U.S. dollar. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets total approximately C$~~166~~238 million and A$~~280~~225 million, respectively, at June 30, ~~2021.~~2022. We use a sensitivity analysis model to measure the impact of a 10% adverse movement of foreign currency exchange rates against the United States dollar. A hypothetical 10% adverse change in the value of the Canadian dollar and Australian dollar relative to the U.S. dollar as of June 30, ~~2021~~2022 would result in translation adjustments of approximately ~~$17~~$24 million and ~~$28~~$23 million, respectively, recorded in other comprehensive loss. Although we do not currently have any foreign exchange agreements outstanding, in order to reduce our exposure to fluctuations in currency exchange rates, we may enter into foreign exchange agreements with financial institutions in the future.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, ~~2021,~~2022, at the reasonable assurance level.

We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including occasional claims by individuals alleging exposure to hazardous materials as a result of our products or operations. Some of these claims relate to matters occurring prior to our acquisition of businesses, and some relate to businesses we have sold. In certain cases, we are entitled to indemnification from the sellers of businesses, and in other cases, we have indemnified the buyers of businesses from us. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by indemnity or insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.


Exhibit No.		Description


31.1*	—	Certification of Chief Executive Officer of Civeo Corporation pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.

31.2*	—	Certification of Chief Financial Officer of Civeo Corporation pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.

32.1**	—	Certification of Chief Executive Officer of Civeo Corporation pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

32.2**	—	Certification of Chief Financial Officer of Civeo Corporation pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.

101.INS*	—	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH*	—	Inline XBRL Taxonomy Extension Schema Document

101.CAL*	—	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*	—	Inline Taxonomy Extension Definition Linkbase Document

101.LAB*	—	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*	—	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104	—	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

PLEASE NOTE: Pursuant to the rules and regulations of the Securities and Exchange Commission, we have filed or incorporated by reference the agreements referenced above as exhibits to this Quarterly Report on Form 10-Q. The agreements have been filed to provide investors with information regarding their respective terms. The agreements are not intended to provide any other factual information about Civeo or its business or operations. In particular, the assertions embodied in any representations, warranties and covenants contained in the agreements may be subject to qualifications with respect to knowledge and materiality different from those applicable to investors and may be qualified by information in confidential disclosure schedules not included with the exhibits. These disclosure schedules may contain information that modifies, qualifies and creates exceptions to the representations, warranties and covenants set forth in the agreements. Moreover, certain representations, warranties and covenants in the agreements may have been used for the purpose of allocating risk between the parties, rather than establishing matters as facts. In addition, information concerning the subject matter of the representations, warranties and covenants may have changed after the date of the respective agreement, which subsequent information may or may not be fully reflected in our public disclosures. Accordingly, investors should not rely on the representations, warranties and covenants in the agreements as characterizations of the actual state of facts about Civeo or its business or operations on the date hereof.


British Columbia, Canada			98-1253716
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)

Three Allen Center, 333 Clay Street, Suite 4980,			77002
Houston, Texas			(Zip Code)
(Address of principal executive offices)


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Shares, no par value	CVEO	New York Stock Exchange


Yes			☒			No			☐


Yes			☒			No			☐


Yes			☐			No			☒


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the transition period from _________________________ to _________________________


	Preferred Shares	Common Shares (in thousands)(1)
Balance, December 31, 2020	9,042	14,215
Share-based compensation	0	101
Balance, June 30, 2021	9,042	14,316


	Preferred Shares	Common Shares (in thousands)
Balance, December 31, 2021	9,042	14,111
Share-based compensation	—	100
Common shares repurchased	—	(23)
Balance, June 30, 2022	9,042	14,188


	For the years ending December 31,
	2021		2022		2023		Thereafter		Total
Revenue expected to be recognized as of June 30, 2021	$	53,065	$	81,244	$	14,253	$	2,008	$	150,570


	June 30, 2021		December 31, 2020
Accounts receivable, net:
Trade	$	82,844	$	66,071
Unbilled revenue	31,716		22,565
Other	7		1,421
Total accounts receivable	114,567		90,057
Allowance for credit losses	(380)		(275)
Total accounts receivable, net	$	114,187	$	89,782


	June 30, 2021		December 31, 2020
Inventories:
Finished goods and purchased products	$	5,330	$	5,047
Work in process	337		45
Raw materials	1,291		1,089
Total inventories	$	6,958	$	6,181


	June 30, 2021		December 31, 2020
Accrued liabilities:
Accrued compensation	$	18,898	$	22,475
Accrued taxes, other than income taxes	3,534		3,099

Other	1,551		1,775
Total accrued liabilities	$	23,983	$	27,349


	June 30, 2022		December 31, 2021
Assets held for sale:
Property, plant and equipment, net	$	11,430	$	11,762
Total assets held for sale	$	11,430	$	11,762


	June 30, 2021		December 31, 2020
Lender commitments (1)	$	167,300	$	167,300

Borrowings against revolving credit capacity	(52,197)		(63,556)
Outstanding letters of credit	(2,982)		(4,487)
Unused availability	112,121		99,257
Cash and cash equivalents	4,414		6,155
Total available liquidity	$	116,535	$	105,412


	Total Number of Shares Purchased		Average Price Paid per Share		Total number of shares purchased as part of publicly announced plans or programs	Maximum number of shares that may yet be purchased under the plans or programs
April 1, 2022 - April 30, 2022	22,411	(1)	$	23.76	22,411	475,724
May 1, 2022 - May 31, 2022	—		—		—	—
June 1, 2022 - June 30, 2022	—		—		—	—
Total	22.411		$	23.76	22.411	475,724


Date: ~~July 30, 2021~~August 4, 2022			By /s/ Carolyn J. Stone
			Carolyn J. Stone
			Senior Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer)