Helmerich & Payne, Inc. (HP) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $48.82 million, or $ 0.45 a share in the quarter, against a net profit of $21.20 million, or $0.19 a share in the last year period.
Revenue during the quarter dropped 7.51 percent to $405.28 million from $438.19 million in the previous year period. Operating margin for the quarter stood at negative 16.20 percent as compared to a positive 9.50 percent for the previous year period.
Operating loss for the quarter was $65.67 million, compared with an operating income of $41.62 million in the previous year period.
President and chief executive officer John Lindsay commented, "We experienced continued activity and spot pricing improvement in the U.S. Land market during our second fiscal quarter and H&P once again led the industry in AC drive rig reactivations and horizontal market share capture. The driving forces behind this success are our people, our continuing investment in technology and our integrated business model. Our ability to grow is enabled by promoting and hiring the best people, and delivering industry leading performance. FlexRig® technology supported by H&P's integrated model has over 1900 rig years of experience and is the preferred AC drive rig offering in the marketplace. H&P is uniquely positioned with a fleet of FlexRigs that provide a Family of SolutionsTM for our customers, and the right rig for their project."
Operating cash flow drops significantly
Helmerich & Payne, Inc. has generated cash of $146.36 million from operating activities during the first half, down 70.28 percent or $346.16 million, when compared with the last year period.
The company has spent $165.74 million cash to meet investing activities during the first six months as against cash outgo of $170.96 million in the last year period.
The company has spent $144.43 million cash to carry out financing activities during the first six months as against cash outgo of $152.93 million in the last year period.
Cash and cash equivalents stood at $741.75 million as on Mar. 31, 2017, down 17.40 percent or $156.27 million from $898.01 million on Mar. 31, 2016.
Working capital decreases marginally
Helmerich & Payne, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,062.47 million as at Mar. 31, 2017, down 2.44 percent or $26.58 million from $1,089.05 million on Mar. 31, 2016. Current ratio was at 4.52 as on Mar. 31, 2017, up from 3.93 on Mar. 31, 2016.
Days sales outstanding went down to 42 days for the quarter compared with 73 days for the same period last year.
Debt comes down
Helmerich & Payne, Inc. has recorded a decline in total debt over the last one year. It stood at $492.37 million as on Mar. 31, 2017, down 7.46 percent or $39.69 million from $532.06 million on Mar. 31, 2016. Total debt was 7.53 percent of total assets as on Mar. 31, 2017, compared with 7.57 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.11 as on Mar. 31, 2017, when compared with the last year.
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