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Helmerich & Payne reports 40 percent decrease in 2015 earnings

Helmerich & Payne reports 40 percent decrease in 2015 earnings
November 12
20:57 2015

Helmerich & Payne Inc. reported Thursday net income of $422 million from operating revenues of $3.2 billion for its fiscal year that ended Sept. 30, compared to net income of $709 million from operating revenues of $3.7 billion for its prior fiscal year that ended September 30, 2014.

The Tulsa-based drilling company’s full-year net income works out to $3.87 per diluted share for fiscal year 2015, down 40 percent compared to the $6.46 per diluted share earned during fiscal year 2014.

 

Included in net income per diluted share for fiscal years 2015 and 2014 are approximately $0.86 and $0.23, respectively, in after-tax income related to a combination of select items including long-term contract early termination compensation, gains from the sale of investment securities, abandonment charges and impairment charges.

“After delivering record-breaking results in 2014, we began fiscal 2015 with high expectations,” President and CEO John Lindsay said in a statement.

“Unfortunately, these past 12 months have brought very low and volatile oil prices, and the industry rig count in the U.S. has fallen to levels below those experienced during the recession in 2009.”

The major theme across the industry is survival, Lindsay said, which has led to sharp reductions in personnel, expenses, and investments across the board.

“No company is immune to these conditions, and fortunately a cornerstone of our strategy has always been fiscal conservatism, which continues to serve us well,” he said.

In the midst of a very challenging market, Lindsay said H&P’s efforts remain focused on adding value to shareholders.

“The short-term outlook for the industry remains uncertain,” Lindsay said. “But we do expect better days ahead and believe the Company is well positioned to grow market share.”

Source

BY CASEY SMITH World Business Write

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