Tulsa’s Helmerich & Payne, Inc reported a $20 million or 22 cent per share drop in its first quarter net income but leadership remains optimistic about the second quarter results.
The earnings report, released this week, showed the firm’s net income was $55 million or 54 cents a share compared to net income of $75 million and 76 cents a share in the fourth quarter of 2024. The operating revenues for the most recent quarter were $677 million, down from $694 million in the quarter that ended Sept. 30 of last year.
Net cash provided by operating activities was $158 million for the first quarter of fiscal year 2025 compared to net cash provided by operating activities of $169 million for the fourth quarter of fiscal year 2024. The Company reported fiscal first quarter Adjusted EBITDA of $199 million.
Hours after releasing the earnings report, the company’s trading suffered a more than 16% loss. At the end of the trading day, Helmerich and Payne’s shares dropped $5.47 or 16.48% a share to settle at $27.72.
Helmerich & Payne exited the first quarter with 148 active rigs and recognized revenue a day of $38,600 a day. Still, the company’s North American Solutions segment reported operating inccome fell $4 million to $152 million from the fourth quarter of 2024.
In the most recent quarter, the Oklahoma company completed the exportation of eight of its super-spec Flexrigs into its Saudi Arabia operations. It also reported an increase in its contracted rig count in key Middle Eastern markets from 11 to 65, with significant sources of cash flows in Saudi Arabia, Oman, Kuwait, and Bahrain. The company also cited substantial growth in its offshore business with exposure now to stable markets in the North Sea, U.S. Gulf of Mexico, the Caspian Sea, and offshore Canada.
“During the first fiscal quarter of 2025, the Company executed at a high level on multiple fronts. Our NAS segment maintained its industry leading position with a financial performance and a stable rig count reflecting the value proposition we are providing to customers,” said President and CEO John Lindsay.
He expects the company’s NAS rig count in the remainder of the second fiscal quarter to remain relatively flat and exit the quarter in a range of 146 to 152 active rigs.
“In our International Solutions segment, we completed the exportation of eight rigs into Saudi Arabia during the quarter, three of which have spud. We are looking forward to more of those rigs commencing operations in the coming months.”
Lindsay said results in the International Solutions and offshore Solutions segments are “poised to increase significantly in the second fiscal quarter.”
“In South America, tendering activity has increased and we see the potential to add 1-3 rigs later in calendar 2025. Regarding the Offshore Solutions segment, the addition of approximately 30 management contracts from the KCA Deutag acquisition will meaningfully increase this segment’s contribution to the overall Company as well.”
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