HOUSTON — HOUSTON — Halliburton reported profit of $1.2 billion in its third quarter despite tumbling energy prices, and said it would boost its dividend by 20 percent.
Oilfield service companies like Halliburton typically get squeezed when the energy prices tumble as major drillers try to preserve their margins. Oil prices have fallen as much as 25 percent since early this summer.
But those same drillers usually ratchet down production as prices fall, and that does not appear to be happening, meaning that demand for service companies remains high.
Halliburton posted a profit of $1.41 per share. Earnings, adjusted for non-recurring gains and to account for discontinued operations, came to $1.19 per share, which was better than most had expected. Analysts surveyed by Zacks Investment Research had projected per-share earnings of $1.10.
The Houston company had revenue of $8.7 billion in the period, also edging out Wall Street expectations.
The company now plans to pay a dividend of 18 cents per share on Dec. 26 to shareholders of record as of Dec. 5.
Shares of Halliburton Co. rose 45 cents to $53.05 by early afternoon. The company's shares have increased roughly 4 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 2 percent.
All content copyright ©2014 Daily Journal, a division of Home News Enterprises unless otherwise noted.