Impressive Third Quarter for Halliburton

Freed of the disruptions of last year's violent hurricane season, Halliburton Co. clocked an impressive 22 percent third-quarter increase in net income totaling $611 million or 58 cents a share. Revenue rose 19 percent to $5.8 billion. Last year shares were at 48 cents for $499 million.

Halliburton dominates the U.S. market for pressure pumping to improve well efficiency. The number of rigs drilling in the U.S. climbed 15 percent in the third quarter even as gas prices dropped some 38 percent. Oilfield services offered by Halliburton include reservoir imaging and pressure pumping as well as the sale of tools and drill bits.

Halliburton chairman, president, and chief executive officer David Lesar said, in a prepared statement, "This was an exceptional quarter for Halliburton. The energy services group improved on its impressive second quarter results, growing revenue 9 percent sequentially. I'm also pleased with the quarterly performance of KBR [the company's construction and engineering unit], which posted a 7.5 percent operating margin in the energy and chemicals segment."

Since the U.S. invaded Iraq three years ago the work Halliburton has done in that country through KBR has kept the company under public scrutiny and has drawn Democratic criticism especially in light of the ties between Halliburton and Vice President Dick Cheney. Halliburton's work in Iraq contributed some $1.2 billion to third quarter revenue and $45 million of operating income.

Although there was talk earlier in the year of an initial public offering of KBR stock, that decision was tabled by Lesar who cited a weak IPO market. There is speculation that Halliburton will spin off KBR in the near future.