Helmerich & Payne, Inc. (NYSE: HP), a leading provider of advanced drilling solutions, has announced its financial results for the third quarter of fiscal year 2024. The company reported a net income of $89 million, or $0.88 per diluted share, reflecting a robust performance despite industry headwinds. With operating revenues reaching $698 million, the company’s North America Solutions segment remained a key driver of growth, while strategic international initiatives, including the deployment of super-spec rigs to Saudi Arabia, are set to enhance its global footprint.
Summary of Helmerich & Payne, Inc. 3Q FY2024 Earnings Release
Financial Highlights
- Net Income: $89 million or $0.88 per diluted share.
- Revenue: $698 million, up from $688 million in the previous quarter.
- Net Cash Provided by Operating Activities: $197 million, compared to $144 million in the previous quarter.
Segment Performance
- North America Solutions (NAS)
- Operating income increased by $16 million sequentially to $163.4 million.
- Direct margins improved by $6 million to $277.4 million.
- Revenues increased to $620 million.
- Expected to exit the fourth quarter with 147-153 active rigs.
- International Solutions
- Operating loss of $4.8 million due to recommissioning expenses for rigs exported to Saudi Arabia.
- Direct margin decreased to $0.4 million.
- The first of eight super-spec rigs arrived in Saudi Arabia, with operations expected to commence in the fourth quarter.
- Offshore Gulf of Mexico
- Operating income of $5 million, an increase from $0.1 million in the previous quarter.
- Direct margin increased to $7.6 million.
Dividend
- Quarterly base cash dividend of $0.25 per share.
- Supplemental cash dividend of $0.17 per share.
- Both dividends payable on August 30, 2024, to stockholders of record on August 16, 2024.
Forward-Looking Statements
- North America Solutions: Direct margins expected to be between $260-$280 million in the fourth quarter.
- International Solutions: Direct margins projected between $(2)-$2 million, exclusive of foreign exchange gains or losses.
- Offshore Gulf of Mexico: Direct margins expected to be between $6-$8 million.
Operational Outlook
- H&P anticipates stable rig count with potential for modest increase towards fiscal year-end.
- The international focus includes ramping up operations in Saudi Arabia with a long-term view to enhance presence in the region.
Conclusion
Helmerich & Payne, Inc. continues to demonstrate resilience and strategic focus, as evidenced by its strong financial performance in the third quarter of FY2024. The company’s unwavering commitment to delivering value to its customers, combined with prudent financial management, has positioned it well to navigate industry challenges. Looking ahead, H&P is poised to capitalize on growth opportunities, particularly in the international arena with its expanded operations in Saudi Arabia. The company remains dedicated to innovation, safety, and shareholder returns, setting a solid foundation for continued success in the coming quarters.
