Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$HP lifted FY18 capital expenditures outlook to about $350MM from prior estimate of $250-300MM. This was due to the continued improvement in market conditions and corresponding opportunities. The company now expects general and administrative expenses forecast of about $180MM.
$HP swung to a profit in 1Q18 from a loss last year, driven by about $501MM non-cash gain related to a reduction of deferred income tax liability arising from Tax Cuts and Jobs Act. Net income was $500.1MM or $4.55 per share compared to a loss of $35.1MM or $0.33 per share a year ago. Operating revenue jumped to $564.1MM from $368.6MM.
$HP said International Land operations had a operating loss in 4Q17 compared to profit last quarter. This was due to the absence of retroactive revenues included in the previous quarter, which favorably impacted 3Q by about $10.7MM due to the effect of a customer's withdrawal of an early termination notice.
$HP said segment operating income for Offshore operations for 4Q17 decreased 22% sequentially primarily as a result of adjustments to self-insurance reserve charges related to management contracts during 4Q. Management contracts on customer-owned platform rigs contributed about $2.5 million to the segment's operating income.
$HP said segment operating loss for U.S. Land operations for 4Q17 narrowed by $4MM sequentially. This was due to an increase in quarterly revenue days and a higher average rig margin per day. This was offset by non-cash charges for abandonments of used drilling rig components related to rig upgrades.
$HP reported a narrower loss in 4Q17 driven by higher revenue. Net loss narrowed to $22.5MM or $0.21 per share from $72.8MM or $0.68 per share last year. Operating revneue grew to $532.3MM from $331.7MM. Results were dominated by oil price uncertainty and set expectations for a substantial rig count reduction for the balance of 2017.
$HP agreed to buy MOTIVE Drilling Technologies for $75MM payable at closing and up to an additional $25MM in potential earnout payments based on future performance during the next few years. The transaction is pending and is expected to close in June 2017.
$HP's 2Q17 US Land segment revenue decreased 5.24% to $330.96MM in 2Q17 compared to a year ago. Offshore segment revenue on the other hand increased 5.53% to $36.23MM. However, International Land segment revenue declined drastically by 32.32% YoY to $34.75MM.
$HP expects its international land & offshore market outlook to remain weak for the near future. For 3Q17, U.S. Land Operations quarterly revenue days (QRD) is expected to be up about 25% sequentially. In Offshore Operations $HP expects QRD to decline by approx. 10-15%, while International Land Operations QRD is expected to be down by approx. 10%.
Petroleum contract drilling company $HP swung to a loss in 2Q17, hurt by lower revenue in US Land and International Land segments. Net loss was $48.81MM or $0.45 loss per share compared to a net income of $21.2MM or $0.19 per share a year ago. Operating revenue declined 7.51% to $405.28MM in the quarter.
$HP's US Land segment revenue decreased 29% to $263.6MM in 1Q17 vs. the prior year quarter. Offshore and International Land segment's revenue decreased 19% and 5%, respectively. CEO John Lindsay said that the outlook has been improving in US Land drilling market, resulting in increased activity levels and market share over the last few months.
For its largest segment U.S. land, $HP expects revenue days (activity) to increase by roughly 30-35% during 2Q17 compared to 1Q17. In the offshore segment, the company expects revenue days to decrease by approx. 10% compared to 1Q17. In the international land segment, revenue days are expected to decline by approx. 38% for 2Q17.
$HP reported a swing to a loss in 1Q17, hurt by lower revenue in all the three segments. Net loss was $35MM or $0.33 per share compared to net income of $16MM or $0.15 per share in 1Q16. Operating revenue declined 24% to $369MM in the recently ended quarter.