The second quarter of 2018 resulted in a $12 million net loss for Tulsa-based Helmerich and Payne.
It amounted to a 12-cent a share loss. The $12 million loss came from operating revenues of $577 million in the second quarter.
President and CEO John Lindsay commented, “Second quarter operational results were strong and our team continued to execute in superb fashion in this steadily improving environment. Higher crude oil prices bolstered increases in the U.S. rig count which in turn supported rig pricing improvements during the quarter.”
Despite the loss, the company’s rig count grew by 4% from 204 rigs at Dec. 31, 2017 to 213 rigs by the end of March 2018. Most of the company rigs are in the Permian basin.
“The Permian is the most active basin in the U.S. and has been the epicenter of the industry’s recovery. H&P has 107 rigs operating in the region, providing us with a leading market share of more than 20% and we expect our rig count to continue to grow throughout the next several months,” said Lindsay. ” Our attention to work-force staffing during the last downturn continues to enable us to effectively manage tightening labor market conditions in the Permian. ”
Segment operating income increased by $2.3 million to $27.1 million sequentially. Positive operating results continue to be supported by sequential increases in both quarterly revenue days and average rig revenue per day. The segment’s depreciation expense for the quarter includes non-cash charges of $7.1 million for abandonments of used drilling rig components related to rig upgrades, compared to similar non-cash charges of $7.2 million during the first fiscal quarter of 2018.
The number of quarterly revenue days increased sequentially by approximately 2%. Adjusted average rig revenue per day increased by $544 to $22,711(4) as pricing continued to improve throughout the quarter. The average rig expense per day increased sequentially by $540 to $14,086. The corresponding adjusted average rig margin per day was roughly flat at $8,625(4) for the second fiscal quarter.