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Sep 30, 2020
Helmerich & Payne Q4 2020 Earnings Report
Helmerich & Payne reported a net loss for the fiscal fourth quarter of 2020, driven primarily by the continued decline in rig activity due to lower crude oil prices.
Key Takeaways
Helmerich & Payne reported a net loss of $59 million, or $(0.55) per diluted share, from operating revenues of $208 million for the quarter ended September 30, 2020. The quarter was one of the most challenging in the company's history, but they focused on introducing new commercial models and expanding drilling and digital technology solutions. The company ended the quarter with $577 million in cash and short-term investments and no amounts drawn on its $750 million revolving credit facility.
Ended the quarter with $577 million in cash and short-term investments.
Expects first quarter of fiscal 2021 North America Solutions rig count to exit at approximately 90 rigs, up over 30% during the quarter.
Reported a fiscal fourth quarter net loss of $(0.55) per diluted share; including select items of $0.19 per diluted share.
Quarterly North America Solutions operating gross margins decreased $63 million to $39 million sequentially.
Revenue by Segment
Forward Guidance
Helmerich & Payne provided operational outlook for the first quarter of fiscal year 2021. They anticipate an increase in contracted rigs and customer utilization of performance-based contracts and rig automation software.
Positive Outlook
- Expect North America Solutions operating gross margins to be between $40-$50 million, inclusive of approximately $1 million of contract early termination compensation
- Expect to exit the quarter at between 88-93 contracted rigs, inclusive of approximately 0-2 contracted rigs generating revenue that could remain idle
- Expect Offshore Gulf of Mexico rig operating gross margins to be between $5-$7 million
- Management contracts are also expected to generate approximately $1-2 million in operating income
Challenges Ahead
- Expect International Solutions operating gross margins to be between $(5)-$(7) million, exclusive of any foreign exchange gains or loses
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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