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Helmerich & Payne beats estimates on Q4 results

Helmerich & Payne Inc. (HP) surpassed market estimates on both revenue and earnings for the fourth quarter of 2018. The stock stood at $60.04 at market close on Thursday.

Total operating revenue grew 31% to $697 million from the same period last year, beating the projection of $679 million.

Helmerich & Payne fourth quarter 2018 Earnings Infographic
Helmerich & Payne Q4 2018 Earnings Infographic

 

The company reported a net income of $2.5 million or $0.02 per share compared to a net loss of $22.5 million or $0.21 per share in the prior-year period. On an adjusted basis, EPS totaled $0.19, ahead of the estimated $0.18.

H&P saw increases in operating revenue and revenue days across all its segments on a year-over-year basis. The US Land Operations and Offshore Operations segments posted increases in average rig revenue per day but the International Land Operations segment saw a decline.

The company’s results were driven by strength in the super-spec rigs space. H&P sees further demand for its super-spec FlexRigs as it heads into the new fiscal year as customers increase their use of pad drilling. The company expects to continue its investments in super-spec upgrades and value-added technologies over the coming year.

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For the first quarter of 2019, quarterly revenue days are expected to increase by approx. 4-5% sequentially in the US Land Operations segment. In the Offshore Operations segment, quarterly revenue days are expected to drop about 5%, while in the International Land Operations segment, quarterly revenue days are expected to be flat to down around 2%, on a sequential basis.

For the full year of 2019, the company expects to incur capital expenditures of approx. $650 million to $680 million. Of this, 40% is expected for super-spec upgrades, 30-35% is expected for maintenance and 25-30% is expected for continued reactivations and other bulk purchases.

 

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