Tulsa World: Helmerich & Payne profits cut; some Venezuelan payments coming in

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Helmerich & Payne profits cut; some Venezuelan payments coming in

By ROD WALTON World Staff Writer
Published: 7/30/2009 9:58 AM
Last Modified: 7/30/2009 10:42 AM

Tulsa drilling contractor Helmerich & Payne Inc. saw its third fiscal quarterly profits drop by more than half from the previous year, but finally collected some overdue funds from Venezeuela, the company reported Thursday.

Net income for the three months ending June 30 totaled $53 million, compared with $125.4 million in profit for the third quarter of fiscal 2008. Total revenues were down nearly 25 percent to $387.8 million, primarily due to a drop in U.S. land drilling efforts, according to Helmerich & Payne’s earnings report to the U.S. Securities and Exchange Commission.

“The first half of calendar 2009 has seen a dramatic plunge in U.S. land rig activity driven by lower natural gas prices and resultant capital spending reductions by exploration and production companies,” company CEO Hans Helmerich said in a statement. “We’re encouraged by what appears to be a recent bottoming out in the industry rig count.”

Helmerich & Payne also was slightly buoyed by $48 million in quarterly collections from Petroleos de Venezuela SA. The Tulsa firm had idled but two of its 11 rigs there while the state-run oil company lagged in payments, according to reports.

The Venezuelans still owe about $97 million, of which 80 percent is more than 90 days old, the company release stated. Helmerich & Payne’s remaining two active rigs will complete their contract obligations in the next six weeks.

“The company will continue to pursue future drilling opportunities in Venezuela, but it does not expect to commit to new

contracts until additional progress is made on pending receivable collections,” the SEC filing reads.

Bloomberg reported earlier this week that Helmerich & Payne was considering putting some of its idle rigs back into action due to the payments. The company would not comment on those reports.

Shares of Helmerich & Payne fell nearly 1 percent to $32.92 Thursday morning on the New York Stock Exchange.

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By ROD WALTON World Staff Writer

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Reader comments for this story have been moved to the most updated version of the story, now under the headline "H&P draws $1.4 million fine," which was published on 7/31/2009. So far, 10 comments have been made.