Helmerich & Payne Q2 2023 Earnings Report
Key Takeaways
Helmerich & Payne, Inc. reported a net income of $164 million, or $1.55 per diluted share, on operating revenues of $769 million for the quarter ended March 31, 2023. The company's North America Solutions segment saw increased operating income and direct margins. H&P is focused on maintaining profitability amidst market volatility, prioritizing returns over market share, and continuing its capital allocation strategy.
Reported fiscal second quarter net income of $1.55 per diluted share, including select items of $0.29 per diluted share.
North America Solutions operating income increased $37 million sequentially, with direct margins increasing $36 million to approximately $296 million.
North America Solutions segment exited the quarter with 179 active rigs, with revenue per day increasing by approximately $3,200/day or 10% to $36,300/day.
Company expects North America Solutions direct margins per day to remain relatively flat or increase slightly in the fiscal third quarter despite contractual churn and cost absorption challenges.
Helmerich & Payne
Helmerich & Payne
Helmerich & Payne Revenue by Segment
Helmerich & Payne Revenue by Geographic Location
Forward Guidance
Helmerich & Payne expects North America Solutions direct margins to be between $265-$285 million with an average active rig count of 163-167 rigs during the third quarter of fiscal year 2023. The company expects to exit the quarter between approximately 155-160 contracted rigs. International Solutions direct margins are expected to be between $4-$7 million, and Offshore Gulf of Mexico direct margins to be between $5.5-$7.5 million.
Positive Outlook
- We expect North America Solutions direct margins(2) to be between $265-$285 million with an average active rig count of 163-167 rigs during the quarter
- We expect to exit the quarter between approximately 155-160 contracted rigs
- We expect International Solutions direct margins(2) to be between $4-$7 million, exclusive of any foreign exchange gains or losses
- We expect Offshore Gulf of Mexico direct margins(2) to be between $5.5-$7.5 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income