Helmerich and Payne’s losses increased to 59 million in the fourth quarter that ended September 30, 2020 which represented 55 cents for diluted share. The company’s third quarter losses were $46 million.
The fourth quarter operating revenues for the Tulsa-based company were down to $208 million from the $317 million for the quarter that ended June 30, 2020. Net cash took a hit too, as it totaled $93 million for the quarter compared to $214 million in the third quarter of the year.
Losses in the entire fiscal year 2020 totaled $494 million or $4.60 per share from operating revenues of $1.8 billion. The company said non-cash losses of $563 million related to impairments of goodwill, less capable rigs and excess related drilling equipment were most significant.
Despite the losses, Helmerich and Payne leaders say they expect the first quarter of fiscal 2021 to have a rig count of at least 90 which would be 30% more than the fourth quarter.
“In terms of activity, this past fourth fiscal quarter was one of the most challenging in the Company’s history,” stated President and CEO John Lindsay.
He said some aspects of the industry are encouraging but he and other company leaders are also aware of the “substantial amount of uncertainty in the market.” Lindsay said it could take several quarters to realize what the ‘new normal’ activity environment will look like given the uncertain timeline and lasting impacts of the COVID-19 pandemic.
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