Helmerich & Payne Inc. (HP) swung to a bigger-than-expected
fiscal third-quarter profit as the company continued to see strong
demand in the U.S.
This is Helmerich's fourth-consecutive quarter in the black,
signaling a turnaround for the contract-drilling company after a
severe industry downturn in recent years. As the dominant supplier
of high-performance drilling rigs used in shale drilling, it
remains poised to benefit from the continuing rush into alternative
shale gas fields. The company is increasing the number of FlexRigs
in its fleet, and has seen its rig-utilization rate improve in
recent quarters.
For the quarter ended June 30, Helmerich reported a profit of
$109.8 million, or $1.01 a share, compared with a loss of $36.7
million, or 34 cents a share, a year earlier. Last year's earnings
from continuing operations were 61 cents a share. Revenue jumped
33% to $644.1 million.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 98 cents on revenue of $633 million.
Operating margin rose to 27.1% from 23.1%.
Profit at its U.S. land operations, by far Helmerich's largest
segment, jumped 71% as revenue grew 47%. The rig utilization rate
increased to 87% from 76% a year earlier and 85% in the second
quarter.
The international land-drilling business swung to an operating
loss of $624,000 as revenue fell 23%. International rig utilization
fell to a rate of 65% from 76% a year earlier but up from 64% in
the second quarter.
Shares closed at $71.76 and were inactive premarket. The stock
has risen 77% over the past year.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com