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Last Updated: Tuesday, 25 October 2005, 09:24 GMT 10:24 UK
Halliburton boosted by oil work
Halliburton's offices in Houston, Texas
Halliburton has benefited from increased oil production
Oilfield services conglomerate Halliburton says increased global oil and gas exploration boosted its profitability in the third quarter.

Reporting its results for the three months to the end of September, it made a net profit of $499m (281m).

But its KBR construction unit, which services the US Army in Iraq, saw revenues fall 7% to $2.5bn after the number of contracts fell.

Group revenues rose 6% to $5.1bn, compared with $4.8bn a year before.

In the third quarter of 2004, Halliburton reported a $42m loss, although this figure was hit by a one-off $230m payment to settle asbestos charges.

Despite KBR's setbacks in Iraq, it remains the US Army's main contractor there and has more than $10bn in ongoing orders.

Federal probes

Halliburton was formerly run by US Vice President Dick Cheney from 1995 to 2000, before he resigned to join President George W Bush's successful election to the White House.

This is very good news for Halliburton and far and away better than what most analysts expected
Analyst

KBR continues to be investigated by a number of US agencies regarding its work in Iraq, accused of over-billing and favouritism because of Mr Cheney's past connection.

Both Halliburton and KBR strenuously deny any wrongdoing.

Halliburton's main energy services unit, which does work for the main oil producing companies, reported third-quarter revenues of $2.6bn, a 23% rise over a year earlier.

Houston-based Halliburton said it benefited from increased global oil rig activity.

It added that the damage and disruption caused by Hurricanes Katrina and Rita impacted $28m in lost profits.

Pleased analysts

The group's profits beat market expectations, but revenues were slightly below.

Analysts were generally pleased with the results.

"This is very good news for Halliburton and far and away better than what most analysts expected," one unnamed analyst told the Reuters news agency.

Halliburton gave no update on its long-term plan to sell off KBR.




SEE ALSO:
Halliburton worker admits bribes
23 Aug 05 |  Business
Halliburton exec on fraud charges
17 Mar 05 |  Americas
Halliburton in $108m Iraq probe
15 Mar 05 |  Business
Halliburton asbestos deal 'final'
04 Dec 04 |  Business
Halliburton faces 'payment cut'
25 Nov 04 |  Business
FBI 'studying Halliburton deals'
29 Oct 04 |  Business


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