Helmerich & Payne's quarterly income tops record
BY ROD WALTON World Staff Writer
Thursday, January 31, 2013
The new fiscal year is off to a roaring start for Tulsa-based Helmerich & Payne Inc., the company reported Thursday.
The rig manufacturer and operator gained a record $159.6 million worth of income from continuing operations for the three months ending Dec. 31. Helmerich & Payne topped $844.6 million in revenues for the first quarter, compared with $732.6 million during the same period of fiscal 2012.
Net income rose $15 million to $159.6 million despite lower daily rig revenue averages and slightly higher expenses. The company also announced contracts to build and operate three new FlexRigs for exploration and production firms in the U.S.
“Going forward, E&P spending plans appear poised for increases as our customers remain focused on innovative technology and productivity improvements that are transforming the energy sector in this country,” CEO Hans Helmerich said in a statement.
The U.S. land segment generated $234.4 million in operating income for the first fiscal quarter. Rig utilization rates domestically dropped to 82 percent from 91 percent in the same time of the previous year.
Helmerich & Payne’s offshore operations increase 25 percent to $15 million for the period. The international land segment also was up slightly to $9.1 million.
As of Thursday, Helmerich & Payne maintained a fleet of 334 rigs, most of those in the U.S. land segment. The overall FlexRig total could reach 299 once new commitments for long-term contracts are completed.