Land jobs lift H&P

by on July 27, 2012 11:44 am BST

The company warned, however, that oil payers are tightening
their belts with regards to exploration costs with demand for drilling services
appearing to soften.

Net profit for the three months to the end of June was
$149.93 million as against $109.83 million a year earlier.

Revenues went from $644.1 million to $819.79 million with US
land drilling revenues soaring from $539.37 million to $706.79 million.

It was a different story for offshore, however, with
revenues sinking from $54.57 million to $41.62 million on lower activity and
lower average margin per rig day.

The international land drilling segment had a positive turnaround
from an operating loss of under $1 million in the third quarter last year to a
profit of $6.28 million this time around.

Chairman and chief executive Hans
Helmerich said: “The pronounced decline in oil prices has
impacted drilling market conditions and prospects.  Our customers appear
to be adjusting their budgets accordingly, and demand for drilling rigs and services
seems to be softening. 

“In the current rig count environment,
operators may even become more focused in their efforts to enhance drilling
efficiencies and reduce total well costs. 

“We would expect the industry movement
toward more complex well designs, faster cycle time, greater focus on safety
and the use of innovative technology to continue to support H&P as a
preferred drilling services provider.”