Halliburton (NYSE:HAL) announced Monday that its second-quarter net income dropped to $737 million from $739 million last year, or to 79 cents per share, down a penny from 2011. Minus a one-time charge of a penny, HAL’s adjusted earnings of 80 cents beat analysts’ calls by 5 cents.
HAL stock was up more than 2% early Monday.
The oilfield services company blamed the decline on a shortage of guar gum — a necessary resource for hydraulic fracturing — which led to increased costs. Additionally, Halliburton faced greater competition. According to Baker Hughes (NYSE:BHI), the number of oil and gas rigs in the U.S. increased almost 8% in the past year.
Though Halliburton encountered setbacks at home, international sales rose 24% to $3 billion, aiding an overall 22% increase in sales to $7.23 billion.
– Ryan Hauck, InvestorPlace