Helmerich & Payne 2Q profit falls 55 pct on Venezuela’s currency devaluation

Helmerich & Payne hit by Venezuela currency

TULSA, Okla. — Helmerich & Payne reported that second-quarter profits fell 55 percent as the drilling company, like others in the energy business, was hit by the devaluation of the Venezuelan bolivar and weak demand for natural gas.

The company beat Wall Street expectations, yet on Thursday natural gas prices fell 8 percent to $4 per 1,000 cubic feet on the New York Mercantile Exchange. The government reported of a serious glut in supply.

Revenues from drilling in the U.S., by far the company’s largest segment, tumbled by nearly 22 percent.

Overall earnings of $46.7 million for the three months ended March 31 were equivalent to 43 cents per share, compared with a profit of $103.7 million, or 98 cents per share, a year earlier.

Included in this year’s second fiscal quarter is a $19.7 million currency exchange loss in Venezuela, which had an 18 cent per share impact on earnings. The latest quarter also included a 1 cent per share gain from the sale of drilling equipment.

Revenue in the quarter fell 15.5 percent to $439.7 million from $520.3 million a year earlier.

Analysts surveyed by Thomson Reuters, who generally exclude one-time items from their estimates, were expecting profit of 56 cents per share on revenue of $427.7 million.

For the first six months of the year, profit came to $110.0 million, or $1.02 per share, on revenue of $839.6 million, compared to a year-ago profit of $249.0 million, or $2.34 per share, on revenue of $1.14 billion.

Shares of Helmerich & Payne Inc. fell $1.69, or 4 percent, to $40.93 in afternoon trading.