Helmerich & Payne(US:HP)2025-02-05 21:21Financial Performance - Net income for the first quarter of fiscal 2025 was $55 million, or $0.54 per diluted share, down from $75 million, or $0.76 per diluted share in the previous quarter[1]. - The company reported operating revenues of $677.3 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 $54.8 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, down from $0.75 in the previous quarter, indicating a decrease of 26.7%[27]. - Adjusted net income for Q4 2024 was $71,448, translating to an EPS of $0.71, compared to $76,074 and $0.76 in Q3 2024[38]. - Net income for Q4 2024 was $54,772, down 27.5% from $75,476 in Q3 2024 and down 42.5% from $95,173 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 $19,400 per day[3]. - Operating income for the North America Solutions segment decreased by $4 million to $152 million, with direct margins down by $9 million to $266 million[3]. - North America Solutions operating revenues for Q4 2024 were $598,145, a decrease of 3.3% from $618,285 in Q3 2024 and an increase of 0.1% from $594,282 in Q4 2023[30]. - International Solutions reported an operating loss of $15,170 in Q4 2024, compared to a loss of $5,097 in Q3 2024 and a profit of $5,423 in Q4 2023[30]. - Offshore Gulf of Mexico segment operating revenues increased to $29,210 in Q4 2024, up 6.0% from $27,545 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, a decrease of 2% from $155,695 in Q3 2024 and an increase of 5.2% from $144,490 in Q4 2023[42]. - Offshore Gulf of Mexico segment operating income was $3,505 in Q4 2024, down from $4,275 in Q3 2024 but up from $3,052 in Q4 2023[42]. Cash Flow and Assets - Cash and cash equivalents increased to $391.2 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 $5.82 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 $158.4 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 $2.95 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 $5.5 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-$50 million for the second quarter[16]. Expenses and Investments - Gross capital expenditures for fiscal 2025 are projected to be approximately $360-$395 million[16]. - Research and development expenses for fiscal 2025 are expected to be roughly $32 million[16]. - Research and development expenses increased to $9,440 in Q4 2024 from $8,987 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 $15,773 in Q4 2024 from $17,305 in Q3 2024, reflecting cost management efforts[42]. - The company incurred acquisition transaction costs of $10.5 million during the three months ended December 31, 2024[27]. - The company incurred acquisition transaction costs of $10,535 in Q4 2024, compared to $7,452 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, a decrease of 8.4% from $217,411 in Q3 2024 and an increase of 1.3% from $215,016 in Q4 2023[45]. - The company reported interest and dividend income of $21,741 in Q4 2024, an increase from $11,979 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].