Helmerich & Payne’s international and offshore businesses are building momentum, with the drilling contractor securing contracts for five additional FlexRigs in Argentina while a four-year Norwegian contract renewal helped lift its offshore backlog to $3.6 billion.
The Argentina awards include three rigs that will be exported from the U.S. later in 2026. H&P said development of Argentina’s Vaca Muerta shale basin is supporting additional rig deployments and creating opportunities for its super-spec drilling technology.
In Offshore Solutions, a four-year contract renewal with an operator in Norway strengthened backlog to approximately $3.6 billion, including both firm and optional contract periods. The segment generated approximately $17 million of operating income and $29 million of direct margin during fiscal Q3.
Offshore operating income increased from $14 million in the preceding quarter, while direct margin rose from $27 million. H&P had three active offshore rigs and 30 management contracts during the period.
International Solutions also showed a sizable sequential improvement. The segment’s operating loss narrowed to approximately $54 million from roughly $100 million, while direct margin increased to $31 million from $11 million. H&P averaged 65 international rigs during the quarter.
North America remained the largest contributor. H&P deployed 10 additional rigs in response to demand from private operators, while daily direct margins increased by more than $1,000 sequentially. North America Solutions generated $140 million of operating income and $241 million of direct margin, or $18,669 per day.
Consolidated fiscal Q3 revenue reached $1.035 billion and Adjusted EBITDA totaled $236 million. GAAP net income was $76 million, or $0.74 per share, including an approximately $115 million gain associated with the sale of Utica Square. Excluding selected items, H&P reported an adjusted loss of $10 million, or $0.11 per share.
For fiscal Q4, H&P expects North America direct margin of $245 million to $255 million, International Solutions direct margin of $25 million to $45 million and Offshore Solutions direct margin of $26 million to $30 million.
KEY QUOTES:
“Our International Solutions segment is building momentum across key markets as we leverage the advantages of our large homogeneous fleet and diversified footprint. In Argentina, we are putting additional rigs back to work, supported by development of the Vaca Muerta shale basin.”
“Our Offshore Solutions segment delivered another quarter of strong operational and financial results. Offshore continues to provide stability and strategic value through its long-term contract portfolio and strong free cash flow generation.”
Trey Adams, President and CEO of Helmerich & Payne
