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Dec 31, 2024
Helmerich & Payne Q1 2025 Earnings Report
Helmerich & Payne reported a decrease in net income and EPS for Q1 FY25, despite stable operating revenues.
Key Takeaways
Helmerich & Payne, Inc. reported a net income of $54.8 million and diluted EPS of $0.54 for the three months ended December 31, 2024. Operating revenues remained stable at $677.3 million. The company's financial performance was impacted by increased acquisition transaction costs and interest expenses, partially offset by higher average pricing levels in North America Solutions.
Net income decreased to $54.8 million from $95.2 million in the prior year, primarily due to higher acquisition transaction costs and interest expenses.
Diluted earnings per common share fell to $0.54 from $0.94 in the previous year.
Operating revenues remained consistent at $677.3 million, with drilling services contributing the majority.
The company incurred $10.5 million in acquisition transaction costs related to the KCA Deutag acquisition.
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.comOffshore Gulf of Mexico Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comArgentina Revenue
CapyFin.comBahrain Revenue
CapyFin.comAustralia Revenue
CapyFin.comSaudi Arabia Revenue
CapyFin.comOther foreign Revenue
CapyFin.com Forward Guidance
The company expects stable rig activity and pricing levels in North America Solutions for fiscal year 2025. International Solutions and Offshore Gulf of Mexico segments are expected to see increased activity due to the KCA Deutag acquisition, despite some temporary suspensions.
Positive Outlook
- North America Solutions segment expects relatively stable rig activity and pricing levels for fiscal year 2025.
- International Solutions segment's contracted rig count is expected to increase to approximately 89 rigs from 20 rigs as of December 31, 2024, due to the KCA Deutag acquisition.
- Offshore Gulf of Mexico segment (to be renamed Offshore Solutions) is expected to increase its active management contract and rig count to approximately 37 from six.
- Current expectations are for activity and pricing in the International Solutions and Offshore Gulf of Mexico (Offshore Solutions) reportable segments to remain relatively stable post the completion of the Acquisition.
- The overall demand for super-spec rigs in the U.S. remains relatively strong, with idle capacity quickly reabsorbed into the market.
Challenges Ahead
- The suspension of operations for 12 acquired rigs in Saudi Arabia is expected to have an adverse impact on International Solutions segment's operating results during fiscal 2025.
- There are no assurances that suspended rigs will re-commence operations on the anniversaries of the notices to suspend.
- The company's ability to successfully conduct international operations is subject to numerous contingencies beyond management's control, including economic conditions, geopolitical developments, and currency fluctuations.
- Future currency devaluations, foreign exchange restrictions, or other difficulties repatriating U.S. dollars from Argentina or elsewhere could have a material adverse impact.
- The company's current backlog does not include anticipated contract renewals or expected performance bonuses, and contracts are subject to cancellation or modification.
Revenue & Expenses
Visualization of income flow from segment revenue to net income