Loading...
•
Dec 31, 2022
Helmerich & Payne Q1 2023 Earnings Report
Helmerich & Payne reported a strong sequential improvement in financial performance, continuing the momentum established in fiscal 2022.
Key Takeaways
Helmerich & Payne reported net income of $97 million, or $0.91 per diluted share, from operating revenues of $720 million for the quarter ended December 31, 2022. The North America Solutions segment saw a significant increase in operating income and direct margins.
Net income was $97 million, or $0.91 per diluted share.
Operating revenues reached $720 million.
North America Solutions operating income increased $53 million sequentially.
Direct margins in North America Solutions increased $57 million to approximately $260 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 anticipates continued financial improvement with increasing direct margins per day in North America Solutions. The company expects to exit the second quarter of fiscal year 2023 with 183-188 active rigs.
Positive Outlook
- North America Solutions direct margins are expected to be between $280-$300 million.
- The company expects to exit the quarter between approximately 183-188 contracted rigs in North America Solutions.
- International Solutions direct margins are expected to be between $7-$10 million.
- Offshore Gulf of Mexico direct margins are expected to be between $8-$10 million.
- Gross capital expenditures are still expected to be approximately $425 to $475 million.
Challenges Ahead
- North America Solutions direct margins include approximately $4.0 million in estimated reactivation costs.
- International Solutions direct margins are expected to be reduced by operating costs related to establishing our Middle East hub.
- Expectations on the timing of sending super-spec rigs to the Middle East and Australia were delayed a few months
- The highest potential active rig count that the company expects to achieve is now 191 due to the loss of a rig in a fire.
- Cash taxes for fiscal year 2023 are still expected to be approximately $190-$240 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income