Helmerich & Payne(US:HP)2024-11-13 21:27Financial Performance - For fiscal year 2024, the company reported net income of $344 million, or $3.43 per diluted share, from operating revenues of $2.8 billion[2]. - Net income for the three months ended September 30, 2024, was $75,476,000, compared to $88,685,000 for the same period in 2023, indicating a decrease of approximately 15%[17]. - Net income for the year ended September 30, 2024, was $344,165, a decrease of 20.7% from $434,100 in 2023[19]. - Adjusted net income for the three months ended September 30, 2024, was $76,074, with an EPS of $0.76[26]. - Operating income decreased to $106,546,000 for the three months ended September 30, 2024, down from $111,313,000 in the previous quarter, representing a decline of about 4.9%[17]. - Total operating income for the company was $106,546, a decrease of 4.9% from $111,313 in the previous quarter and an increase of 13.7% from $93,719 year-over-year[23]. Revenue and Margins - The North America Solutions segment exited Q4 2024 with 151 active rigs, generating revenue of approximately $39,100 per day and direct margins of $19,800 per day[1]. - The company expects North America Solutions direct margins to be between $260 million and $280 million in Q1 2025[6]. - Direct margin (Non-GAAP) for North America Solutions was $238,814,000, with a total direct margin of $238,814,000 across all segments[32]. - Direct margin (Non-GAAP) for North America Solutions was $274,634, a decrease from $277,423 in Q2 2024 but an increase from $238,814 in Q3 2023[21]. Capital Expenditures and Investments - Capital expenditures for fiscal year 2025 are expected to range between $290 million and $325 million, reflecting a significant decrease from fiscal year 2024[4]. - Capital expenditures increased to $(495,072) from $(395,460), representing a rise of 25.2% compared to the previous year[20]. - The company established a $400 million two-year term loan and raised $1.25 billion in bonds to finance the pending KCA Deutag acquisition[4]. Operational Highlights - The company anticipates exiting Q1 2025 with approximately 147-153 active rigs in the North America Solutions segment[1]. - The first rig in Saudi Arabia has commenced operations, with plans to export three more rigs by the end of the calendar year[3]. - The average active rigs in North America Solutions increased to 151 in Q3 2024 from 150 in Q2 2024 and 149 in Q3 2023, indicating stable operational capacity[21]. - The number of active rigs at the end of the period in North America Solutions was 151, consistent with the previous quarter and an increase from 147 in Q3 2023[21]. Research and Development - Research and development expenses for fiscal year 2025 are expected to be roughly $32 million[6]. - Research and development expenses for the three months ended September 30, 2024, were $8,862,000, compared to $7,326,000 for the same period in 2023, reflecting an increase of about 21%[17]. - Research and development expenses increased to $8,987 in Q3 2024 from $7,406 in Q3 2023, reflecting a 21.4% year-over-year growth[21]. Debt and Financing - Long-term debt rose significantly to $1,782,182,000 as of September 30, 2024, compared to $545,144,000 in the previous year, an increase of approximately 226%[18]. - Proceeds from debt issuance amounted to $1,247,629, with no proceeds reported in the previous year[20]. - Net cash provided by financing activities was $986,507, a significant increase from $(463,869) in the prior year[20]. Dividend and Shareholder Returns - The company plans to allocate approximately $100 million to its annual base dividend of $1 per share in fiscal year 2025[4]. - Dividends paid decreased to $(168,459) from $(201,456), a reduction of 16.4% compared to the prior year[20]. - The company reported a total of 98,755,412 basic shares outstanding as of September 30, 2024, compared to 99,426,526 shares in the same period last year[18].