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Helmerich & Payne(HP) - 2025 Q1 - Quarterly Results
HPHelmerich & Payne(HP)2025-02-05 21:21

Financial Performance - Net income for the first quarter of fiscal 2025 was 55million,or55 million, or 0.54 per diluted share, down from 75million,or75 million, or 0.76 per diluted share in the previous quarter[1]. - The company reported operating revenues of 677.3millionforthethreemonthsendedDecember31,2024,comparedto677.3 million for the three months ended December 31, 2024, compared to 693.8 million for the previous quarter, reflecting a decrease of approximately 2.3%[27]. - Net income for the same period was 54.8million,downfrom54.8 million, down from 75.5 million in the prior quarter, representing a decline of about 27.5%[27]. - Basic earnings per share for the quarter were 0.55,downfrom0.55, down from 0.75 in the previous quarter, indicating a decrease of 26.7%[27]. - Adjusted net income for Q4 2024 was 71,448,translatingtoanEPSof71,448, translating to an EPS of 0.71, compared to 76,074and76,074 and 0.76 in Q3 2024[38]. - Net income for Q4 2024 was 54,772,down27.554,772, down 27.5% from 75,476 in Q3 2024 and down 42.5% from 95,173inQ42023[45].SegmentPerformance−TheNorthAmericaSolutionssegmenthad148activerigs,generatingrevenueof95,173 in Q4 2023[45]. Segment Performance - The North America Solutions segment had 148 active rigs, generating revenue of 38,600 per day and direct margins of 19,400perday[3].−OperatingincomefortheNorthAmericaSolutionssegmentdecreasedby19,400 per day[3]. - Operating income for the North America Solutions segment decreased by 4 million to 152million,withdirectmarginsdownby152 million, with direct margins down by 9 million to 266million[3].−NorthAmericaSolutionsoperatingrevenuesforQ42024were266 million[3]. - North America Solutions operating revenues for Q4 2024 were 598,145, a decrease of 3.3% from 618,285inQ32024andanincreaseof0.1618,285 in Q3 2024 and an increase of 0.1% from 594,282 in Q4 2023[30]. - International Solutions reported an operating loss of 15,170inQ42024,comparedtoalossof15,170 in Q4 2024, compared to a loss of 5,097 in Q3 2024 and a profit of 5,423inQ42023[30].−OffshoreGulfofMexicosegmentoperatingrevenuesincreasedto5,423 in Q4 2023[30]. - Offshore Gulf of Mexico segment operating revenues increased to 29,210 in Q4 2024, up 6.0% from 27,545inQ32024and14.627,545 in Q3 2024 and 14.6% from 25,531 in Q4 2023[30]. - North America Solutions segment operating income for Q4 2024 was 151,994,adecreaseof2151,994, a decrease of 2% from 155,695 in Q3 2024 and an increase of 5.2% from 144,490inQ42023[42].−OffshoreGulfofMexicosegmentoperatingincomewas144,490 in Q4 2023[42]. - Offshore Gulf of Mexico segment operating income was 3,505 in Q4 2024, down from 4,275inQ32024butupfrom4,275 in Q3 2024 but up from 3,052 in Q4 2023[42]. Cash Flow and Assets - Cash and cash equivalents increased to 391.2millionasofDecember31,2024,comparedto391.2 million as of December 31, 2024, compared to 217.3 million at the end of the previous quarter, marking an increase of about 80%[28]. - Total assets as of December 31, 2024, were 5.82billion,aslightincreasefrom5.82 billion, a slight increase from 5.78 billion at the end of the previous quarter[28]. - The company reported net cash provided by operating activities of 158.4millionforthethreemonthsendedDecember31,2024,comparedto158.4 million for the three months ended December 31, 2024, compared to 174.8 million for the same period in 2023[29]. - Total shareholders' equity increased to 2.95billionasofDecember31,2024,from2.95 billion as of December 31, 2024, from 2.92 billion at the end of the previous quarter[28]. Acquisition and Backlog - The acquisition of KCA Deutag added approximately 5.5billioninbacklogwithhigh−quality,investment−gradecustomers[3].−ThecompletionoftheKCADeutagacquisitiononJanuary16,2025,addedapproximately5.5 billion in backlog with high-quality, investment-grade customers[3]. - The completion of the KCA Deutag acquisition on January 16, 2025, added approximately 5.5 billion to the company's contract backlog[25]. - Direct margin contribution from KCA Deutag's legacy operations is expected to be between 35−35-50 million for the second quarter[16]. Expenses and Investments - Gross capital expenditures for fiscal 2025 are projected to be approximately 360−360-395 million[16]. - Research and development expenses for fiscal 2025 are expected to be roughly 32million[16].−Researchanddevelopmentexpensesincreasedto32 million[16]. - Research and development expenses increased to 9,440 in Q4 2024 from 8,987inQ32024and8,987 in Q3 2024 and 8,689 in Q4 2023, indicating a focus on innovation[42]. - Selling, general and administrative expenses for North America Solutions decreased to 15,773inQ42024from15,773 in Q4 2024 from 17,305 in Q3 2024, reflecting cost management efforts[42]. - The company incurred acquisition transaction costs of 10.5millionduringthethreemonthsendedDecember31,2024[27].−Thecompanyincurredacquisitiontransactioncostsof10.5 million during the three months ended December 31, 2024[27]. - The company incurred acquisition transaction costs of 10,535 in Q4 2024, compared to 7,452inQ32024[34].OtherFinancialMetrics−AdjustedEBITDAforthefirstquarterwasreportedat7,452 in Q3 2024[34]. Other Financial Metrics - Adjusted EBITDA for the first quarter was reported at 199 million[3]. - Adjusted EBITDA for Q4 2024 was 198,905,adecreaseof8.4198,905, a decrease of 8.4% from 217,411 in Q3 2024 and an increase of 1.3% from 215,016inQ42023[45].−Thecompanyreportedinterestanddividendincomeof215,016 in Q4 2023[45]. - The company reported interest and dividend income of 21,741 in Q4 2024, an increase from 11,979inQ32024[34].−Thecompanyreportedasignificantinterestexpenseof11,979 in Q3 2024[34]. - The company reported a significant interest expense of 22,298 in Q4 2024, up from $16,124 in Q3 2024, impacting overall profitability[45].