UPDATE 1-Oilfield 'man camp' operator Civeo cuts jobs amid oil slump

Mon Dec 29, 2014 8:25pm EST
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(Adds details on spin off concerns, REIT plans, rivals, customers, tax move)

By Ernest Scheyder

WILLISTON, N.D. Dec 29 (Reuters) - Civeo Corp, which provides temporary housing for oilfield workers and miners, slashed its workforce on Monday and said revenue could fall by a third as slumping crude prices force oil producers to cut costs

The warning adds jitters to the already-wary global oil market and highlights weakness in Australia's coal industry, one of Civeo's biggest markets which has been battered by low global demand for steel.

Civeo suspended its quarterly dividend and said it has reduced its workforce in the United States, its smallest market, by 45 percent, and in Canada, its second-biggest market, by 30 percent.

Shares of the Houston-based company which was spun off from Oil States International Inc in May, fell 30 percent in extended trading.

Civeo had long struggled before it became independent, even losing money in 2013 in the United States, its most-promising market. A 50 percent decline in crude prices since June has put new pressure on it as demand for temporary housing softens.

Some oilfield workers also prefer to live in apartments, which many growing towns have urged developers to build. Williams County, North Dakota, has a moratorium on new temporary housing known as "man camps" which are made up of units that look like a cross between shipping containers and mobile homes.

Civeo forecasts revenue of $160 million to $175 million for the first quarter ending March. Analysts on average expect $228 million, according to Thomson Reuters I/B/E/S.   Continued...