Halliburton shares down despite $706M profit

Halliburton Co. (NYSE: HAL) shares fell 3 percent Monday despite the oil field service company’s third-quarter net income of $706 million.

The company’s third-quarter net income improved 17 percent from the $602 million it earned during the same period a year earlier.

Halliburton has substantial operations in Northern Colorado and performs a majority of hydraulic fracturing in the region, according to analysts.

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Despite exceeding earnings estimates, Halliburton shares fell more than 3 percent to $50.65 because its rivals Baker Hughes Inc. (NYSE: BHI) and Schlumberger Ltd. (NYSE: SLB) outperformed the company, Reuters reported.

Halliburton posted record third-quarter revenue of $7.5 billion vs. $7.1 billion during the third quarter of last year.

Despite “severe revenue and operational disruptions” from flooding in Northern Colorado, the company’s sequential revenue from its North American business improved 2 percent following increased activity in the Gulf of Mexico, CEO Dave Lesar said in an earnings statement.

Indeed, North American revenue improved to $3.88 billion during the third quarter from the $3.8 billion during the second quarter. Third-quarter revenue, year-over-year however, fell from $3.9 billion reported by Halliburton during the third quarter of last year, according to the earnings statement.

“During the quarter, we saw improvement in activity levels across the United States land market as drilling and completion efficiencies continue to drive an improved well count,” Lesar said. “The United States land rig count, however, remains sluggish. Additionally, oversupply of service capacity in North America continues to put pressure on pricing in a number of areas.”