Q1 2025 Helmerich and Payne Inc Earnings Call Transcript
Key Points
- Helmerich & Payne Inc (HP) successfully completed the exportation of 8 FlexRigs into Saudi Arabia, enhancing their international growth strategy.
- The acquisition of KCA Deutag positions Helmerich & Payne Inc (HP) as a global leader in onshore drilling solutions, expanding their geographic and operational mix.
- Helmerich & Payne Inc (HP) maintains a strong market share in North America, particularly in the Permian Basin, with over 35% market share of super-spec rigs.
- The company has a robust backlog of work totaling approximately $5.5 billion, supported by blue-chip customers, enhancing financial resilience.
- Helmerich & Payne Inc (HP) continues to generate strong and consistent margins in North America, demonstrating resilience despite industry rig count declines.
- There are near-term headwinds in international growth plans due to rig suspensions related to the KCA acquisition and start-up costs in Saudi Arabia.
- The financial results for International Solutions were below guidance due to slower-than-expected activity in Saudi Arabia.
- Helmerich & Payne Inc (HP) expects a modest decline in direct margins for North America Solutions in Q2 2025 due to fewer days in the quarter and normal revenue variability.
- The company is experiencing increased operating costs, primarily due to start-up costs in Saudi Arabia and higher-than-expected general and administrative expenses.
- The acquisition of KCA Deutag has led to increased debt, with $75 million of interest expense projected for 2025, impacting cash flow.
Good day, everyone, and welcome to today's Helmerich & Payne's Fiscal First Quarter Earnings Call. (Operator instructions) Please note that this call is being recorded.
(Operator instructions)
It is now my pleasure to turn the program over to Mr. Wilson, Dave Wilson, VP of Investor Relations.
Thank you, Shane, and welcome, everyone, to Helmerich & Payne Conference Call and Webcast for the First Quarter of Fiscal Year 2025. With us today are John Lindsay, President and CEO; and Kevin Vann, Senior Vice President and CFO. . Both John and Kevin will be sharing some prepared comments with us, after which we'll open the call for questions.
Before we begin our prepared remarks, I'll remind everyone that this call includes forward-looking statements as defined under the securities laws. Such statements are based upon current information and management's expectations as of this date and are not guarantees of future performance.
Forward-looking
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