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Mar 31, 2021
Helmerich & Payne Q2 2021 Earnings Report
Helmerich & Payne's Q2 2021 results reflected a net loss, but showed improvements in North America Solutions operating gross margins and increased activity.
Key Takeaways
Helmerich & Payne reported a net loss of $121 million, or $(1.13) per diluted share, from operating revenues of $296 million for the quarter ended March 31, 2021. The North America Solutions segment saw increased operating gross margins and a rise in active rigs. The company ended the quarter with $562 million in cash and short-term investments and approximately $1.3 billion in available liquidity.
North America Solutions segment exited the quarter with 109 active rigs, up roughly 15% during the quarter.
The company ended the quarter with $562 million in cash and short-term investments, culminating in approximately $1.3 billion in available liquidity.
North America Solutions operating gross margins increased $19 million to $64 million sequentially.
Approximately 30% of active fleet utilizing some form of performance-based contract.
Revenue by Segment
Forward Guidance
Helmerich & Payne provided the following operational outlook for the third quarter of fiscal year 2021.
Positive Outlook
- North America Solutions operating gross margins are expected to be between $65-$75 million.
- The company expects to exit the quarter at between 120-125 contracted rigs in North America Solutions.
- Offshore Gulf of Mexico operating gross margins are expected to be between $6-$9 million.
- Gross capital expenditures are still expected to be approximately $85 to $105 million.
- Ongoing asset sales are still expected to total approximately $25 million in fiscal year 2021.
Challenges Ahead
- International Solutions operating gross margins are expected to be between $(1)-$(3) million, exclusive of any foreign exchange gains or losses.
- Depreciation is now expected to be approximately $425 million.
- Research and development expenses for fiscal year 2021 are now expected to be roughly $25 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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