Helmerich & Payne’s revenue in Q1 increases by 66% as rig numbers increase (NYSE: HP)

well drilling and geophysical surveys for oil and gas exploration and production.  The use of modern artificial intelligence technologies for production

Igor Borisenko / iStock via Getty Images

Helmerich & Payne (NYSE: HP) +2.4% post-market after suffering a smaller-than-expected FQ1 loss, while revenue increased by two-thirds from last year to $ 409 million, ahead of analyst estimates, citing increasing demand for their oil and gas well drilling services.

Operating income in Q4 by segment: North America Solutions + 69% Y / Y to $ 341M, International Solutions + 254% to $ 37.2M and Offshore Gulf of Mexico 9.2% to $ 29.3M.

H&P said its North America Solutions segment left FQ1 with 154 active rigs, rising more than 20% during the quarter, but the segment’s operating loss in the first quarter rose to $ 28.9 million. USD from a loss of 60.7 mill. USD in the previous quarter, as the costs associated with reactivation of rigs. increased to $ 20.5 million. compared to $ 6.6 million. in the 4th quarter.

For Q2, H&P expects North America Solutions to have a gross margin of $ 100M- $ 115M, including $ 11M in estimated reactivation costs, as it estimates to leave the quarter with 165-175 contracted rigs.

“Rising demand for super-specific rigs has predictably led to a very tight market by 2022,” said President and CEO John Lindsay. “As expected, this increase in demand resulted in a marked increase in our rigant numbers during the first accounting quarter, which we expect is likely to be followed by a more moderate but still healthy increase” in FQ2.

“Despite activity improvements and higher commodity prices that have benefited the industry … significantly higher prices are still required to generate the required returns to attract and retain investors and for this business to be vibrant and sustainable,” Lindsay said.

Helmerich & Payne shares have risen 35% since reaching a 52-week low of $ 21.28 on December 1st.

Leave a Comment