Helmerich and Payne posts Q2 $163m loss amid goodwill impairment impact; offshore segment income drops
Drilling technology company Helmerich and Payne (H&P) recently posted its results for the quarter ended June 30, 2025.
H&P realised a consolidated net loss of US$163 million, which includes the impact of a non-cash goodwill impairment charge of US$173 million. Adjusted for this and other non-recurring one-time items, earnings were US$22 million, or US$0.22 per share.
The company's offshore segment contributed operating income of approximately US$9 million, compared to approximately US$17 million during the previous quarter, representing a decrease of US$8 million.
Direct margin (i.e., operating revenues less direct operating expenses, a non-GAAP metric) totalled approximately US$23 million compared to approximately US$26 million in the previous quarter.
The inclusion of the legacy KCAD offshore business has added scale and geographic expansion to the company’s offshore segment. H&P said it now has the benefit of a larger, blue-chip customer base, low capital intensity, and steady cash flow from offshore operations.
H&P's North America segment realised operating income of US$158 million, compared to US$152 million during the previous quarter, representing an increase of US$6 million. Direct margin exceeded the guidance range, totaling approximately US$266 million, which was approximately flat with the previous quarter despite slightly lower average rig activity.
The company's international segment had an operating loss of US$167 million, compared to a loss of approximately US$35 million during the previous quarter. Not including the impairment of US$128 million, the segment’s operating loss was US$38 million.
Without the non-cash impairment of goodwill, direct margin totalled approximately US$34 million compared to approximately US$27 million during the previous quarter.
The company also realised consolidated adjusted gross operating profit of US$268 million.
“Total direct margin across our three operating segments was at the high end of our guidance ranges, reflecting the hard work from our operations and sales teams to deliver collaborative solutions with customers,” commented H&P President and CEO John Lindsay.
“Meanwhile, our offshore segment continues to generate steady cash flows, reflecting H&P’s position as the leading global offshore operation and platform maintenance provider in the world."
According to H&P’s operational outlook for the fourth quarter of fiscal year 2025, the offshore segment’s direct margin is expected to be between US$22 and US$30 million while average management contracts and contracted platform rigs will be approximately between 30 and 35.
