Helmerich & Payne Wins $1B Caspian Sea Contract, Logs $97M Q1 Loss
Helmerich & Payne’s JV won a five-year Caspian Sea offshore contract with BP worth over $1 billion, with three one-year extension options, starting March 2026. Q1 2026 results showed a $97M net loss including a $103M impairment, $14M adjusted profit and $260M debt repayment.
1. Major Caspian Sea Contract Secured
Helmerich & Payne’s joint venture with Turan Drilling and Engineering Company LLC secured a five-year BP offshore operations and maintenance contract in the Caspian Sea, commencing March 2026. The agreement includes three one-year extension options, potentially pushing total value beyond $1 billion if all options are exercised.
2. Q1 2026 Financial Results
In the fiscal first quarter of 2026, the company reported a $97 million net loss, driven by a $103 million non-cash impairment charge. Adjusted operating profit reached $14 million, equivalent to $0.15 per share, while consolidated adjusted EBITDA totaled $230 million.
3. Segment Performance
North America Solutions delivered $36 million in operating income and $239 million in direct margins, averaging $18,193 per operating day. International Solutions posted a $55 million operating loss despite generating $29 million in direct margins.
4. Balance Sheet and Cash Actions
The company repaid $260 million on its term loan and returned $25 million to shareholders during the quarter. These cash deployment measures aim to strengthen the balance sheet ahead of offshore project ramp-up and market fluctuations.