Halliburton profit falls, but in line with market estimates

Halliburton Co's third-quarter profit fell in line with analysts' estimates due to the high cost of a key drilling material and a slowdown in North American drilling activity because of low natural gas prices.

The world's second-largest oilfield services company said revenue in North America fell 5 percent from the second quarter, mainly because of weak demand for hydraulic fracturing services but also as a result of disruptions caused by Hurricane Isaac.

Oilfield services companies have far less pricing power in the United States this year as depressed natural gas prices have reduced the number of rigs targeting gas to a 13-year low.

Halliburton said that although the U.S. oil-directed rig count rose 3 percent from the second quarter, the increase was not enough to offset the 18 percent drop in natural gas rigs.

However, international revenue rose 2 percent from the second quarter despite a decline of 2 percent in the global rig count, mainly as a result of solid sequential growth in its operations in Latin America and the Middle East.

Halliburton's decision to stockpile guar, a key ingredient in hydraulic fracturing fluids, in the second quarter has backfired, as prices have since started to fall.

Net income fell to $604 million, or 65 cents per share, in the third quarter from $685 million, or 74 cents per share, a year earlier. Revenue rose 9 percent to $7.1 billion.

Income from continuing operations, on an adjusted basis, was 67 cents per share.

Halliburton shares, which have gained 19 percent in the last three months, were at $34.07 in pre-market trading after closing at $34.56 on the New York Stock Exchange on Tuesday.

(Reporting by Braden Reddall in San Francisco and Swetha Gopinath in Bangalore; Editing by Don Sebastian)