This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Helmerich & Payne Expects Venezuelan Devaluation To Impact Its Second Fiscal Quarter

TULSA, Okla., Jan. 12 /PRNewswire-FirstCall/ -- Helmerich & Payne, Inc. (NYSE: HP) announced today that it expects its second fiscal quarter of 2010 to be impacted by the currency devaluation recently announced by authorities in Venezuela.  The Company's preliminary estimates regarding the impact of this devaluation on its consolidated financials indicate that it will probably result in an exchange loss of approximately $20 million to be recorded in the second fiscal quarter ending March 31, 2010.  Not included in this estimate is the decline in value of the uncollected invoices issued since the Company changed its revenue recognition to cash basis for its Venezuelan operation.  Given that these uncollected invoices are not included in the Company's consolidated accounts receivable, their reduction in value is not expected to generate additional exchange losses.  Preliminary estimates indicate that the value of future potential collections related to these unrecorded invoices, previously disclosed at approximately $61 million, could decline by 25 to 35 percent.

The Company will continue to work toward more precisely determining the impact that the devaluation of Venezuelan currency will have on its second fiscal quarter earnings and on the decline of value corresponding to unrecorded and uncollected invoices in Venezuela.  An update will be provided during the Company's conference call corresponding to its first fiscal quarter on January 28, 2010.

The Company proactively continues efforts to collect unpaid invoice amounts in Venezuela, but has not received any payments since its fiscal year-end earnings report dated November 19, 2009.  All eleven H&P rigs that formerly worked for PDVSA remain idle.  The Company continues to pursue future drilling opportunities for these eleven large conventional rigs in Venezuela, but it does not expect to commit to new contracts until additional progress is made on pending receivable collections and on conversion of local currency to U.S. dollars.

Helmerich & Payne, Inc. is primarily a contract drilling company.  As of December 31, 2009, the Company's existing fleet included 210 land rigs in the U.S., 39 international land rigs and nine offshore platform rigs.  In addition, the Company is scheduled to complete another three new H&P-designed and operated FlexRigs®* during fiscal 2010 under long-term contracts with customers.  Upon completion of these commitments, the Company's global land fleet will include a total of 190 FlexRigs.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,069.71 +95.40 0.56%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,532.1990 -17.0270 -0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs