Tulsa-based drilling contractor Helmerich & Payne stated it has decommissioned 37 rigs and laid off as much as 2,800 individuals through the first quarter of 2020 in response to the dramatic results of the COVID-19 pandemic and the continued oil value struggle.
Helmerich & Payne’s closed its fiscal second quarter, January to March, with a lack of $420.5 million, a big swing from the $60.9 million the corporate reported one yr earlier. Revenue of $633 million declined 12 p.c from $720.9 million year-on-year.
The firm reported a lack of $563 million in belongings impairment, which incorporates the decommissioning of 37 drilling rigs throughout the United States. The firm’s chief monetary officer Mark Smith stated eradicating these rigs from service additionally meant shedding 2,800 individuals and that extra could be coming.
“We’ve seen 115 rig launch notifications since early March,” Smith stated. “We anticipated to finish the third quarter under 70 rigs.”
U.S. Land Operations phase had an working lack of $309.1 million in comparison with working revenue of $56.7 million through the earlier quarter. Adjusted common rig income per day elevated by $270 to $25,667 largely as a consequence of a rise in rig demobilization revenues through the quarter partially offset by decrease common dayrates.
President and CEO John Lindsay commented, “Throughout our historical past the Company has sought to be ready of power each operationally and financially to face the inherent cyclicality and uncertainties within the vitality business. We have taken swift actions to take care of the well being and security of our workers and prospects and have made tough, however vital, measured choices to uphold the Company’s longstanding monetary power. H&P has responded to many downturns and we imagine that our constant long-term perspective and our monetary power allows us to additional the strategic aims of the Company. In this regard, we are going to stay centered on new industrial fashions, increasing our digital know-how choices to the market, growing our worldwide presence and value administration.”
With Nabors, Precision Drilling, Pioneer Energy and Patterson-UTI, Helmerich & Payne is a part of the highest 5 corporations offering land drilling providers within the USA.
(Source: Helmerich & Payne – Image: Helmerich & Payne FlexRig)

The publish HELMERICH & PAYNE TO IDLE 37 RIG AND LAY OFF 2,800 PEOPLE – MORE TO COME appeared first on Energy Global News.

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