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Dec 31, 2021
Helmerich & Payne Q1 2022 Earnings Report
Helmerich & Payne's Q1 2022 results reflected increased activity in North America and strategic investments.
Key Takeaways
Helmerich & Payne reported a net loss of $51 million, or $(0.48) per diluted share, on operating revenues of $410 million for the quarter ended December 31, 2021. The company experienced increased activity levels in North America Solutions, with operating gross margins increasing $15 million sequentially. Strategic investments, such as ADNOC Drilling, contributed to the company's financial position.
North America Solutions segment exited the quarter with 154 active rigs, up over 20% during the quarter.
North America Solutions operating gross margins increased $15 million sequentially to $84 million.
The Company reported a fiscal first quarter net loss of $(0.48) per diluted share, including select items of $(0.03) per diluted share.
During the fiscal first quarter H&P repurchased 2.5 million shares for approximately $60 million.
Helmerich & Payne
Helmerich & Payne
Helmerich & Payne Revenue by Segment
Helmerich & Payne Revenue by Geographic Location
Revenue by Segment
North America Solutions Revenue
CapyFin.comInternational Solutions Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Helmerich & Payne provided operational outlook for the second quarter of fiscal year 2022, including expectations for North America Solutions, International Solutions, and Offshore Gulf of Mexico.
Positive Outlook
- North America Solutions operating gross margins are expected to be between $100-$115 million.
- Exit the quarter at between 165-175 contracted rigs in North America Solutions.
- Gross capital expenditures are still expected to be approximately $250 to $270 million.
- Ongoing asset sales are now expected to total approximately $45 million in fiscal year 2022.
- Depreciation and amortization expenses are still expected to be approximately $405 million.
Challenges Ahead
- North America Solutions operating gross margins include approximately $11 million in estimated reactivation costs.
- International Solutions operating gross margins are expected to be between $(2)-$0 million, exclusive of any foreign exchange gains or losses.
- Research and development expenses for fiscal year 2022 are now expected to be roughly $27 million.
- Selling, general and administrative expenses for fiscal year 2022 are still expected to be approximately $170 million.
- International markets rig count in the Middle East is expected to decline due to two unexpected rig releases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income