Helmerich & Payne Fourth Quarter Results Top Estimates

(RTTNews) - Contract driller of oil and gas wells Helmerich & Payne, Inc. (HP) reported Thursday a profit for the fourth quarter that increased from last year, reflecting revenue growth amid increases across operating segments. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.

"We are pleased to have once again delivered record levels of revenue and operating income during the most recent quarter. Our fiscal 2013 results have also been record-breaking, even if we exclude almost $100 million in after-tax gains from the sale of investment securities," Chairman and CEO Hans Helmerich said in a statement.

The Tulsa, Oklahoma-based company reported net income of $159.80 million or $1.47 per share for the fourth quarter, higher than $157.12 million or $1.46 per share in the prior-year quarter.

Income from continuing operations for the fourth quarter grew to $159.80 million or $1.47 per share from $149.61 million or $1.39 per share in the year-ago quarter. Results for both the quarters include $0.11 per share of after-tax gains related to the sale of used drilling equipment.

On average, 22 analysts polled by Thomson Reuters expected the company to earn $1.41 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter increased to $864.54 million from $829.45 million in the same quarter last year, and topped fourteen Wall Street analysts' consensus estimate of $845.85 million.

Operating revenues for U.S. land operations for the quarter rose to $707.89 million from $695.82 million in the year-ago quarter, with rig utilization declining to 82 percent from last year's 85 percent.

Offshore operations revenues for the quarter totaled $54.68 million, up from $53.26 million in the prior-year quarter, with rig utilization increasing to 89 percent from last year's 84 percent.

Operating revenues for international land operations grew to $98.50 million from 77.72 million in the same quarter last year, with rig utilization growing to 87 percent from last year's 79 percent.

Operating income for the quarter increased to $243.23 million from $239.38 million in the prior-year quarter, and total operating costs and expenses were $521.30 million, up from $590.07 million in the year-ago quarter.

For fiscal 2013, company reported net income of $736.64 million or $6.79 per share, higher than $581.04 million or $5.34 per share in the prior year.

Income from continuing operations for the year grew to $721.45 million or $6.65 per share from $573.61 million or $5.27 per share in the year ago.

Total operating revenues for the full year increased to $3.39 billion from $3.15 billion posted last year.

Street was looking for full-year 2013 earnings of $5.60 per share on revenues of $3.36 billion.

"We believe customers are now planning to incrementally increase their development efforts and drilling activity with a continued focus on drilling rig capabilities and efficiencies. As has been the case for a considerable time, these trends clearly work to H&P's advantage. We look forward to continuing to help our customers lower their drilling costs through steady productivity gains and performance improvements," Helmerich added.

HP closed Wednesday's regular trading session at $76.96, up $1.17 on a volume of 1.40 million shares.