Helmerich & Payne(US:HP)2025-11-17 21:28Financial Performance - The company reported a consolidated net loss of $(57) million, or $(0.58) per share, including non-recurring charges of $56 million; adjusted net loss was $(1) million, or $(0.01) per share[3]. - The company realized consolidated adjusted EBITDA of $225 million for the quarter[3]. - For the three months ended September 30, 2025, drilling services revenue was $990,211,000, compared to $691,293,000 for the same period in 2024, representing an increase of 43.4%[29]. - Total operating revenues for the year ended September 30, 2025, were $3,746,013,000, up from $2,756,607,000 in 2024, reflecting a growth of 36%[29]. - The company reported a net loss of $57,363,000 for the three months ended September 30, 2025, compared to a net loss of $162,758,000 for the same period in 2024[29]. - Net income for the year ended September 30, 2025, was a loss of $159.948 million, compared to a profit of $344.165 million in 2024[31]. - Adjusted net income for the three months ended September 30, 2025, was $(1,228), with an EPS of $(0.01)[39]. - The company incurred a loss on investment securities of $36,461, impacting overall financial performance[39]. - The company’s income (loss) before income taxes was $(62,072), an improvement from $(132,908) in the previous quarter[34]. Segment Performance - North America Solutions (NAS) segment achieved operating income of $118 million, with direct margins of $242 million, yielding a margin per day of $18,620[3][10]. - International Solutions segment improved its operating loss to $(75) million from $(167) million in the prior quarter, with direct margins of approximately $30 million[3][10]. - Offshore Solutions segment reported record margins of nearly $35 million during the fourth quarter, attributed to increased rig utilization[7][10]. - Operating revenues for North America Solutions decreased to $572.274 million in Q3 2025 from $618.285 million in Q3 2024, a decline of approximately 7.4%[32]. - Segment operating income for North America Solutions was $118.158 million for Q3 2025, down from $155.593 million in Q3 2024, representing a decrease of about 24%[32]. - International Solutions reported operating revenues of $241.234 million in Q3 2025, compared to $265.803 million in Q2 2025, a decrease of approximately 9.3%[32]. - North America Solutions reported operating income of $118,158, a decrease of 25% from $157,649 in the previous quarter[34]. - International Solutions experienced an operating loss of $75,715, compared to a loss of $166,513 in the previous quarter, indicating a significant improvement[34]. Assets and Liabilities - Total assets increased to $6,705,738,000 as of September 30, 2025, from $5,781,898,000 in 2024, marking a growth of 15.9%[30]. - Current liabilities rose to $814,836,000 as of September 30, 2025, compared to $446,949,000 in 2024, indicating an increase of 82.2%[30]. - The company’s cash and cash equivalents decreased to $196,848,000 as of September 30, 2025, down from $217,341,000 in 2024, a decline of 9.5%[30]. - Total shareholders' equity decreased to $2,829,338,000 as of September 30, 2025, from $2,917,152,000 in 2024, a decrease of 3%[30]. Capital Expenditures and Debt - The company repaid $210 million of its $400 million term loan, expecting to fully repay by the end of the third fiscal quarter of 2026[3][7]. - Gross capital expenditures for fiscal 2026 are expected to be between $280 million and $320 million, with $40 million to $60 million allocated for NAS operations[3][8]. - The company incurred capital expenditures of $426.373 million for the year ended September 30, 2025, down from $495.072 million in 2024[31]. - Net cash provided by operating activities for the year ended September 30, 2025, was $542.950 million, a decrease from $684.663 million in 2024[31]. - The company reported a net cash used in investing activities of $1.925 billion for the year ended September 30, 2025, compared to $458.748 million in 2024[31]. Research and Development - The company anticipates research and development expenses of approximately $25 million for fiscal 2026[18]. - Research and development expenses for the three months ended September 30, 2025, were $7,567,000, slightly down from $8,850,000 in the same period of 2024[29]. - Research and development costs associated with an asset acquisition were not reported for the three months ended September 30, 2025, but were $3,840,000 for the year ended September 30, 2024[46]. Other Financial Metrics - The average contracted rig count for NAS is projected to be between 132 and 148, while the average operating rig count for International Solutions is expected to be between 58 and 68[8]. - Average active rigs in North America Solutions were 141 for Q3 2025, down from 151 in Q3 2024[32]. - The number of active rigs at the end of the period for North America Solutions was 144, compared to 151 in the previous year[32]. - The total marketable fleet in U.S. Land Operations decreased to 203 rigs from 223 rigs in the previous quarter, reflecting a reduction in idle or other rigs[36]. - The total contracted rigs in International Solutions decreased to 86 from 88 in the previous quarter, indicating a slight contraction in operations[36]. Dividends and Other Income - The company paid dividends of $100.735 million in 2025, down from $168.459 million in 2024[31]. - Total other income (expense) amounted to $(60,610), a significant increase in expenses compared to $(4,639) in the previous quarter[34]. - Other income (expense) for the three months ended September 30, 2025, included a gain of $5,985,000, contrasting with a loss of $31,258,000 in the previous quarter[46]. - The company reported a foreign currency exchange gain of $6,455,000 for the three months ended September 30, 2025, compared to a loss of $9,216,000 in the previous quarter[46]. - Net income attributable to non-controlling interest for the three months ended September 30, 2025, was $1,556,000, up from $859,000 in the previous quarter[46].