Helmerich & Payne Q3 Profit Surges On Gains

(RTTNews) - Contract driller of oil and gas wells Helmerich & Payne, Inc. (HP) reported Friday a profit for the third quarter that surged from last year, reflecting double-digit revenue growth and hefty gains related to the sale of investment securities. Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates.

"In light of the challenging rig market, we are pleased with the strong quarterly results corresponding to our drilling operations. Also during the most recent quarter, the Board approved a significant increase in dividends paid to shareholders. After doubling the dividend at the end of last year, in June the dividend was increased again from $0.15 to $0.50 per share per quarter," Chairman and CEO Hans Helmerich said in a statement.

The Tulsa, Oklahoma-based company reported net income of $266.16 million or $2.46 per share for the third quarter, higher than $149.93 million or $1.38 per share in the prior-year quarter.

Income from continuing operations for the third quarter grew to $250.98 million or $2.32 per share from $149.94 million or $1.38 per share in the year-ago quarter.

Results for the latest quarter include $0.86 per share of after-tax gains related to the sale of investment securities.

On average, 24 analysts polled by Thomson Reuters expected the company to earn $1.34 per share for the third quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter increased to $840.20 million from $819.79 million in the same quarter last year, but missed fifteen Wall Street analysts' consensus estimate of $844.15 million.

Operating revenues for U.S. land operations for the quarter declined to $696 million from $5707 million in the year-ago quarter, with rig utilization declining to 83 percent from last year's 89 percent.

Offshore operations revenues for the quarter totaled $54 million, up from $42 million in the prior-year quarter, with rig utilization increasing to 89 percent from last year's 74 percent.

Operating revenues for international land operations grew to $87 million from $67 million in the same quarter last year, with rig utilization growing to 80 percent from last year's 77 percent.

Operating income for the quarter increased to $240 million from $233 million in the prior-year quarter, and total operating costs and expenses were $600 million, up from $587 million in the year-ago quarter.

"We are in excellent position to quickly respond to improving market conditions and continue to expect the rig fleet replacement cycle to provide H&P with growth opportunities. Our focus will remain on helping customers reduce their total well costs through applied innovations and productivity improvements, while at the same time delivering attractive returns to our shareholders," Helmerich added.

HP closed Thursday's regular trading session at $6656, up $0.35 on a volume of 1.46 million shares.