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Mar 31, 2022
Helmerich & Payne Q2 2022 Earnings Report
Helmerich & Payne's financial performance reflected a net loss, but showed improvements in North America Solutions segment due to increased activity and contract economics.
Key Takeaways
Helmerich & Payne reported a net loss of $5 million, or $(0.05) per diluted share, with operating revenues of $468 million. The North America Solutions segment showed improvement with increased operating income and direct margins. The company remains committed to disciplined capital allocation.
North America Solutions segment exited the quarter with 171 active rigs, up over 10% during the quarter.
North America Solutions operating income increased $30 million sequentially, while direct margins increased $30 million to $114 million sequentially.
North America Solutions revenue per day increased approximately $1,500/day or 7% to $24,500/day on a sequential basis.
Company reported a fiscal second quarter net loss of $(0.05) per diluted share; including select items of $0.12 per diluted share.
Revenue by Segment
Forward Guidance
Helmerich & Payne anticipates improvements in contract economics and remains committed to disciplined capital allocation. For the third quarter of fiscal year 2022, North America Solutions direct margins are expected to be between $150-$165 million, International Solutions direct margins are expected to be between $(3)-$(1) million, and Offshore Gulf of Mexico direct margins are expected to be between $7-$9 million.
Positive Outlook
- Economics for spot contracts are improving.
- Expect similar improvements for term contracts as they are renewed or move into the spot market.
- Contracting economics are moving financial returns higher.
- Resulting cash generation will enhance strong financial position furthering ability to take advantage of various opportunities.
- Committed to a long-standing, fiscally sound and disciplined approach to capital allocation.
Challenges Ahead
- International Solutions direct margins are expected to be negatively impacted by costs incurred to move a rig from the U.S.
- Industry track record to add excessive capacity to the market and the longer-term negative consequences that could ultimately result from those actions if not carefully considered.
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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