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Jun 30, 2021
Helmerich & Payne Q3 2021 Earnings Report
Helmerich & Payne reported a net loss for Q3 2021 due to operating losses across most segments, though North America Solutions showed improvement. Revenue increased compared to the previous quarter, and the company maintained a strong cash position.
Key Takeaways
Helmerich & Payne reported a net loss of $56 million, or $(0.52) per diluted share, on operating revenues of $332 million for the quarter ended June 30, 2021. The company's North America Solutions segment saw increased revenues and improved operating gross margins, but overall results were still negatively impacted by costs associated with reactivating rigs. The company expects activity and pricing to continue to increase over the next quarter.
North America Solutions segment exited Q3 with 121 active rigs, up over 10% during the quarter.
The company ended the quarter with $558 million in cash and short-term investments and no amounts drawn on its $750 million revolving credit facility, culminating in approximately $1.3 billion in available liquidity.
Quarterly North America Solutions operating gross margins increased $11 million to $75 million sequentially, as revenues increased by $31 million to $281 million.
The company reported a fiscal third quarter net loss of $(0.52) per diluted share; including select items of $0.05 per diluted share.
Revenue by Segment
Forward Guidance
Helmerich & Payne provided operational outlook for the fourth quarter of fiscal year 2021.
Positive Outlook
- North America Solutions operating gross margins are expected to be between $72-$82 million.
- The company expects to exit the quarter at between 127-132 contracted rigs in North America Solutions.
- Offshore Gulf of Mexico operating gross margins are expected to be between $7-$9 million.
- Gross capital expenditures are now expected to at the lower end of our previous guidance range of $85 to $105 million range.
- 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 relatively flat between $(2)-$0 million, exclusive of any foreign exchange gains or losses.
- Depreciation and amortization expenses are still expected to be approximately $425 million.
- Research and development expenses for fiscal year 2021 are now expected to be roughly $20 to 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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