For the nine months ended June 30, 2005, the Company reported net income of $91,485,000 ($1.77 per diluted share) from operating revenues of $567,516,000, compared with net income of $16,983,000 ($0.33 per diluted share) from operating revenues of $424,988,000 during the first nine months ended June 30, 2004. Included in net income were gains from the sale of portfolio securities and drilling equipment of $0.45 per share for the first nine months of fiscal 2005, and $0.17 per share for the first nine months of fiscal 2004.
This year's third quarter operating income was up in all four of the Company's business segments compared with both last year's third quarter and this year's second quarter. The most significant impact came from the U.S. land rig operations with operating profit totaling $47,244,000 for the third quarter, compared with $9,487,000 for last year's third quarter and $35,797,000 for this year's second quarter. Third quarter U.S. land profit margins per rig day rose 18% over the previous quarter from $6,944 to $8,219 per day, despite labor cost increases that drove daily rig expenses up by 4.5% during the same period. Third quarter average rig revenue reached an all time high of $16,658 per day. (See attached financial reports for additional operating statistics.)
Since March 2005, the Company has announced separate agreements with six companies to construct and operate a total of 22 newly designed FlexRigs, all under three-year contracts with attractive dayrates and economics. The first of the new rigs will be delivered this November.
Company President and CEO, Hans Helmerich commented, "As the land rig industry experiences capacity limitations resulting in improved profitability and an intensified demand for new rigs, Helmerich & Payne is in the enviable position as the market leader in new-build orders. We are excited about the growth opportunities that lie ahead for the Company and the value created for our shareholders."
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