Halliburton shows surge in profits despite connection to Gulf oil spill
Halliburton Co., which was handling the cementing job on BP's Macondo well before it blew up, saw its second-quarter profits jump 83 percent, beating Wall Street expectations.
Halliburton Co. said energy companies have become so aggressive about exploring for natural gas in the U.S. that its land-based drilling business will make up for a suspension of deepwater drilling in the Gulf of Mexico.
The Houston petroleum services company on Monday reported an 83-percent surge in second-quarter profits. The results beat Wall Street expectations, and shares rose more than 5 percent.
Halliburton is the first of several companies connected to the Gulf oil spill to report second-quarter financial results. The company was handling the cementing job on BP's Macondo well before it blew up on April 20.
The government's moratorium on deepwater exploration in the Gulf "will usher in a new regulatory climate and will have a profound impact on how deepwater drilling is performed," Halliburton's CEO Dave Lesar said in a conference call with investors.
Lesar said that drilling activity throughout the Gulf will slow down this year as drilling permits receive more scrutiny from government regulators. A few deepwater rigs have already left the Gulf for work in international waters. Lesar doesn't expect them to return "for some time, if at all."