Net income for the fourth quarter of fiscal 2007 was $116,410,000 ($1.10 per diluted share) from operating revenues of $449,449,000, compared with net income of $98,496,000 ($0.93 per diluted share) from operating revenues of $358,799,000 during last year's fourth quarter. Included in net income were gains from the sale of portfolio securities and drilling equipment, and gains from insurance settlements of $0.13 per share for the fourth quarter of fiscal 2007, and $0.06 per share for the fourth quarter of fiscal 2006.
Helmerich & Payne, Inc. also announced today that it had signed six additional three-year term contracts with an exploration and production company to operate six new FlexRigs®* in the U.S. The name of the customer and other terms were not disclosed. This brings to 83 the total number of new FlexRig commitments with at least three-year term contracts and projected attractive returns that have been announced by the Company since March 2005. To date, 72 of these new builds have been deployed to the field, with the remaining eleven scheduled for deployment by the third quarter of fiscal 2008.
Segment operating income in the Company's U.S. land rig operations increased to $124,191,000 for the fourth quarter of fiscal 2007, from $103,679,000 for the same period last year, and from $114,619,000 for this year's third quarter. Average rig revenue per day rose by $265 to $23,666 and average rig margin per day rose by $439 to $12,221 for this year's fourth quarter, compared with $23,401 and $11,782, respectively, for the previous quarter. During the fourth quarter of 2007, rig utilization averaged 95%, compared with 99% during last year's fourth quarter, and 96% during this year's third quarter. Total U.S. land rig activity days for this year's fourth quarter increased by 892 over the previous quarter. During this year's fourth fiscal quarter, a total of ten newly constructed rigs were deployed to the field. It is anticipated that seven more will be deployed during the first quarter of fiscal 2008.
The Company's offshore operations reported segment operating income of $6,343,000 for the fourth quarter of fiscal 2007, compared with $7,853,000 for the fourth quarter 2006 and $4,553,000 for the third quarter of 2007. Rig utilization was 59% during this year's fourth quarter, compared with 69% during last year's fourth quarter, and 67% during this year's third quarter. Five of the Company's platform rigs are currently active, one is being mobilized and one is being prepared for work under a long-term contract. The remaining two of the Company's nine platform rigs are idle with ongoing negotiations for work beginning later in 2008.
The Company's offshore operations segment now includes financial results from platform rigs and offshore management contracts that operate internationally as well as domestically. The Company's platform rig that is being mobilized is expected to commence operations in an international location in the second fiscal quarter of 2008. Results from this operation will be reported in the offshore operations segment. Also, as a result of this new segment approach, financial information for both the offshore and international segments have been reclassified for previously reported periods to reflect the inclusion of results from the offshore platform management contract work in West Africa that was previously included in the international segment. Regular operations from that contract have ended and negligible income was generated from that project in the fourth quarter of 2007.
International land segment operating income during the fourth quarter of 2007 was $32,358,000, compared with $16,116,000 for last year's fourth quarter, and $28,873,000 for this year's third quarter. Rig utilization for international land operations was 81% for the quarter, compared with 95% during last year's fourth quarter, and 90% during this year's third quarter. This year's fourth quarter operating income included approximately $6 million (approximately $0.04 per share after tax) of early termination income for one rig. Excluding the early termination income, international land average rig revenue and margin per day increased by 2% and 4%, respectively, compared with the previous quarter.
Company President and C.E.O., Hans Helmerich commented, "We are pleased to report the Company's highest all-time year-end results. An impressive 36% year-over-year increase in annual segment operating income allowed the Company to once again deliver record earnings to our shareholders. This growth is primarily fueled by our successful new build program, which during the fiscal year delivered 48 new FlexRigs in line with fiscal 2007 construction cost estimates. Perhaps the year's most significant accomplishment is the on-time, on-cost execution of that aggressive program and our people's ability to daily deliver on the entire value chain involved: design, manufacturing, commissioning, training and field performance. Strong performance and improving conditions in our international markets also contributed to our record earnings, as that segment reported over 100% year-over-year growth in annual segment operating income.
"There continues to be global market interest for new FlexRigs, and we are proactively pursuing further contract possibilities both in the U.S. and in international markets. We are pleased to announce today a new order for six additional FlexRig3s. Our approach has been to enable our customers to attain lower total well costs through the industry's safest, newest, and most innovative land fleet."
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