While revenues improved in the second quarter for Helmerich & Payne, it still reported a net loss of $5 million or 5 cents a share. With the improvements along with $100 oil, company leadership continues to be cautious about dealing with worldwide interest in more oil and gas drilling operations.
The Tulsa-based company had a net loss of $51 million for the quarter that ended December 31, 2021. Operating revenues in the quarter that ended March 31 of this year were $468 million compared to $410 million in the previous quarter.
The company experienced improvements as net cash from operating activities totaled $23 million for the second quarter compared to $4 million in the previous quarter.
“Just when the energy industry is beginning to normalize, another geopolitical event and its immediate and lasting ramifications provide a sharp reminder of how critical abundant, cost effective and secure energy is to sustaining the broader global economy,” said President and CEO John Lindsay.
“Given the industry’s experience in recent years we are not at all surprised to find our customers remaining rational and disciplined with regards to their capital expenditures, even in the face of spiking commodity prices”
The quarterly report showed Helmerich & Payne’s North America Solutions rig count increased to 171 rigs. As the nation’s rig count increased, it also resulted in in a shrinking of the company’s availability of super-spec rigs.
Lindsay said as a result of the international market, the company is re-contracting some of its rigs in South America, Argentina and Columbia. The company is also moving forward in delivering the rigs it sold to ADNOC Drilling in the Middle East.
While oil prices are still above $100 a barrel, the company leaders indicated they do not plan to adjust its previously established capex budget of $250 to $270 million for fiscal 2022.
“As John alluded to, current contracting economics are moving our financial returns higher and the resulting cash generation will enhance our strong financial position furthering our ability to take advantage of various opportunities, including capital allocation to shareholders,” said Senior Vice President and CFO Mark Smith.
The company’s North America operations had an operating income of $1.3 million compared to an operating loss of $28.9 million in the previous quarter. The increase was mostly due to higher activity levels and improving contract economics.
The international solutions for Helmerich & Payne had an operating loss of $0.8 million compared to an operating income of $8 million in the previous quarter. The company cited the drop due to a contractual dispute with a customer that benefited the first fiscal quarter by $16.4 million.
Click here for more details in Business Wire release
