Categories AlphaGraphs, Earnings, Technology

Helmerich & Payne delivers better-than-expected Q1 results

Helmerich & Payne Inc. (HP) reported revenues and earnings that surpassed market expectations in the first quarter of 2019. The stock was down 1.4% in morning hours on Wednesday.

Total operating revenues grew 31% to $740.5 million from the same period last year, helped by a growth in contract drilling revenues.

Helmerich & Payne fourth quarter 2018 earnings infographic
Helmerich & Payne Q4 2018 Earnings Infographic

Net income was $19 million, or $0.17 per share, compared to $500 million, or $4.55 per share, in the prior-year period. Last year’s results were boosted by a one-time tax benefit. Adjusted EPS totaled $0.32.

The company posted revenue increases across all its operating segments during the quarter compared to last year. The US Land Operations segment saw an increase in average rig revenue per day while International Land Operations posted a decline versus last year. Average rig revenue per day in Offshore Operations remained relatively flat.

Also see: Helmerich & Payne Q4 2018 Earnings Conference Call Transcript

For the second quarter of 2019, in the US Land Operations segment, quarterly revenue days are expected to decrease by approx. 3-5% on a sequential basis. Average rig revenue per day is expected to be $25,500-26,000.

In Offshore Operations, quarterly revenue days are expected to increase by around 3% sequentially while average rig margin per day is expected to be approx. $6,000-7,000. Management contracts are expected to generate around $4-5 million in operating income.

Helmerich & Payne beats estimates on Q4 results

In International Land Operations, quarterly revenue days are expected to drop around 10% sequentially, mainly due to lower activity in Colombia and less number of calendar days in the second quarter. Average rig margin per day is expected to be around $10,500-11,500.

For full-year 2019, Helmerich & Payne expects to incur capital expenditures of around $500 million to $530 million with around 35% expected for super-spec upgrades, 33-38% expected for maintenance and 27-32% expected for continued reactivations and other bulk purchases.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top