Loading...
•
Mar 31, 2023
Helmerich & Payne Q2 2023 Earnings Report
Helmerich & Payne reported fiscal second quarter results with increased North America Solutions operating income and direct margins, while focusing on maintaining returns over market share amidst market uncertainties.
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.
Revenue by Segment
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
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...