Contract drilling services provider
Helmerich & Payne Inc.
) reported bright results for the fourth quarter of fiscal 2012
(three months ended September 30, 2012), owing to better drilling
activities and innovative technological applications.
HELMERICH&PAYNE (HP): Free Stock Analysis
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Quarterly earnings per share from continuing operations
(excluding special items) came in at $1.36, beating the Zacks
Consensus Estimate of $1.24. Compared with the year-ago adjusted
profit, the result increased 22.5% from $1.11.
Revenue in the quarter was $829.5 million, higher 18.4% from the
fourth quarter of 2011 and also surpassed our projection of
For fiscal year 2012, Helmerich & Payne generated earnings
per share from continuing operations (excluding special items) of
$5.16 (surpassing our projection of $5.03), on revenue of
U.S. Land Operations:
During the quarter, operating revenues totaled $695.1 million
(84% of total revenue), up 18.0% year over year. Average rig
revenue per operating day was $28,325, up 6.7%, while average rig
margin per day increased 15.4% to $15,705.
Utilization levels dropped to 85% (from 87% in the fourth quarter
of fiscal 2011). The segment operating income improved
significantly (by 23.2%) from the year-earlier quarter to $236.6
Helmerich & Payne's offshore revenues were up 3.7% year over
year to $53.3 million. Daily average rig revenue increased 14.5%
to $62,018, while average rig margin per day climbed 7.1% to
$23,330. This aided the segment's operating income to rise 1.4%
from the prior-year quarter to $12.0 million. Quarterly rig
utilization was 84%, down from 85% recorded a year ago.
International Land Operations:
International land operations recorded revenues of $77.7 million,
up from $57.2 million in the prior-year quarter. Average daily
rig revenue was $35,732, up 19.1%, while rig margin per day was
$8,210, against $7,690 recorded in the year-ago period. With
better activity, the segment generated operating profit of $7.1
million, compared with $3.5 million in the fourth quarter of
fiscal 2011. Utilization level was 79%, up from 74% in the
corresponding period, last year.
Capital Expenditure & Balance Sheet
During the fiscal year 2012, Helmerich & Payne spent $1,097.7
million on capital programs. As of September 30, 2012, the
company had approximately $96.1 million in cash, while long-term
debt stood at $195.0 million (debt-to-capitalization ratio of
Nabors Industries Ltd.
) - the leading land-drilling contractor in the world - reported
mixed third-quarter 2012 results, with earnings per share going
ahead of the Zacks Consensus Estimate and revenue missing our
Helmerich & Payne currently retains a Zacks #3 Rank
(short-term Hold rating). Longer term, we are maintaining our
Neutral recommendation on the stock.