US market boost for Halliburton

HALLIBURTON Co, the world's second-largest oilfield services company, yesterday posted a higher-than-expected quarterly profit after it experienced strong demand in its North American market.
By The Newsroom
Published 25th Jan 2011, 09:11 BST
Updated 25th Jan 2011, 09:11 BST

Weak natural gas prices have cooled off North American drilling activity after a dramatic ramp-up in 2010, though the jump in crude oil prices has prompted a surge in oil and other liquids projects.

Halliburton's earnings were hurt by the drop in activity in the Gulf of Mexico, where companies have been struggling to win new drilling permits in the wake of the BP oil spill last year.

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Halliburton, which could face legal liability over the disaster that killed 11 workers last April, expects business in the region to eventually return, although prospects remain uncertain for the first half of 2011.

"However, I believe it is prudent to maintain all of our infrastructure and most of our headcount in anticipation of a rebound in the Gulf," said chief executive and chairman Dave Lesar in a statement.

Mr Lesar also said the company will expand its deep-water operations in the Eastern Hemisphere.

However, he did not specify how much it would spend.

Fourth-quarter net profit rose to $605m, or 66 cents per share, from $243m, or 27 cents per share, a year earlier.

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Excluding a 2 cent per share charge related to former subsidiary KBR's settlement with Nigeria, earnings per share were 68 cents,

Revenue jumped 40 per cent to $5.16bn in the quarter.

Analysts had expected revenues to be $4.88bn.