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Jun 30, 2024
Helmerich & Payne Q3 2024 Earnings Report
Helmerich & Payne reported Q3 2024 results with increased revenues and net income.
Key Takeaways
Helmerich & Payne reported a net income of $89 million, or $0.88 per diluted share, on operating revenues of $698 million for the quarter ended June 30, 2024. The North America Solutions segment saw increased operating income and direct margins, while the International Solutions segment experienced an operating loss due to recommissioning expenses. The company returned $42 million to shareholders in dividends and anticipates continued activity in the International Solutions segment with rigs commencing work in Saudi Arabia.
Net income for the third quarter of fiscal year 2024 was $89 million, or $0.88 per diluted share.
North America Solutions segment operating income increased by $16 million sequentially.
The company's first super-spec FlexRig® arrived in Saudi Arabia.
The company returned $42 million to shareholders in the form of base and supplemental dividends.
Helmerich & Payne
Helmerich & Payne
Helmerich & Payne Revenue by Segment
Helmerich & Payne Revenue by Geographic Location
Revenue by Segment
North America Solutions Revenue
CapyFin.comInternational Solutions Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comSaudi Arabia Revenue
CapyFin.comOther foreign Revenue
CapyFin.com Forward Guidance
Helmerich & Payne anticipates exiting the fourth quarter of fiscal year 2024 with between 147-153 active rigs in the North America Solutions segment and expects International Solutions activity levels to remain consistent with the third fiscal quarter, with the first Saudi Arabia rig expected to commence work.
Positive Outlook
- North America Solutions direct margins are expected to be between $260-$280 million.
- The company expects to exit the quarter between approximately 147-153 contracted rigs in North America Solutions.
- International Solutions direct margins are expected to be between $(2)-$2 million, exclusive of any foreign exchange gains or losses.
- Offshore Gulf of Mexico direct margins are expected to be between $6-$8 million.
- Gross capital expenditures are still expected to be approximately $500 million.
Challenges Ahead
- International Solutions direct margins for the fourth fiscal quarter are inclusive of approximately $6-$8 million of rig preparation and start-up expense related to our Saudi Arabia operations, higher than previous guidance as some costs shifted from the third fiscal quarter into the fourth fiscal quarter.
- Macro headwinds persist and are still causing a more cautionary outlook for the industry.
- Contractual churn remains prevalent in the U.S. market.
- The company anticipate active rig count to be flat with perhaps a modest incline heading into fiscal year-end.
- Cash taxes to be paid in fiscal year 2024 are still expected to be approximately $150-$200 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income