WASHINGTON (dpa-AFX) - Contract drilling company Helmerich & Payne, Inc. (HP) reported Thursday a higher profit in its second quarter, above Street estimates, benefited by increased revenues. The company also entered into three multi-year rig contracts.
Net income for the second quarter was $151.08 million or $1.39 per share, higher than last year's $129.72 million or $1.18 per share.
The results of 2013 and 2012 included gains equivalent to $0.03 and $0.05 per share, respectively, related to the sale of used drilling assets.
On average, 26 analysts polled by Thomson Reuters expected earnings of $1.29 per share for the quarter. Analysts' estimates typically exclude one-time items.
Operating revenues of $838.31 million climbed from last year's $769.98 million, while analysts estimates revenues of $824.28 million.
Chairman and CEO Hans Helmerich said, 'We are pleased with our solid financial results for the quarter and continue to expect 2013 to improve as the year unfolds. Assuming some measure of oil price resiliency, we anticipate slow activity improvement ahead with customer focus around capturing potential efficiencies, performance reliability and safety providing attractive opportunities for the Company.'
In addition, Helmerich & Payne said that it has entered into agreements with two exploration and production companies to build and operate two additional FlexRigs in the U.S. The Company also entered an agreement to build a new 3,000 horsepower AC drive rig which is scheduled to begin operations in Colombia in the spring of 2014. All three rigs are under multi-year term contracts and expected to generate attractive economic returns for the company.
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