Helmerich & Payne profit up 9 percent in 3rd-qtr on margins, growth in rig activity

Friday, August 1st 2008

Contract driller Helmerich & Payne told the press that its third-quarter profit rose 9 percent, powered by growth in its U.S. land rig operations. Helmerich & Payne said it made $125.4 million, or $1.18 per share, for the quarter ended June 30, compared with $115.2 million, or $1.09 per share, a year ago. Revenue rose to $522.5 million from $421.3 million.

Included in this year’s quarterly report were 13 cents per share of gains from the sale of portfolio securities and drilling equipment along with a 7 cent per share charge stemming from its acquisition of TerraVici Drilling Solutions.

Stripping out those items, the company earned $1.12 per share.

Analysts surveyed by Thomson Financial expected profit of $1.03 per share on revenue of $508.4 million. Those estimates typically exclude one-time gains.

The company said U.S. land rig operating income rose to $159.4 million in the quarter from $114.6 million a year ago.

The year to date, the company reported profit of $335.3 million, or $3.16 per share, compared with $332.9 million, or $3.17 per share, a year ago. Revenue increased to $1.45 billion from $1.18 billion.

Helmerich & Payne shares fell $1.50, or 2.5 percent, to $59.70 in afternoon trading. The shares have traded between $27.68 and $77.24 the past year.