Halliburton reports profits drop

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Oilfield services provider Halliburton has reported a 32% drop in quarterly net profit, hit by a potential payout to settle corruption charges.

Halliburton's net income for the last three months of 2008 fell to $468m (£341m) from $690m a year earlier.

A $308m charge is related to settling federal bribery charges against its former KBR unit in connection with the firm's operations in Nigeria.

Halliburton split from KBR in 2007, focusing on its oilfield services work.

The former chief executive of construction firm KBR, Albert Stanley, pleaded guilty to charges of corruption relating to Nigerian deals.

He and others were accused of gaining construction deals worth more than $6bn by bribing Nigerian officials.

Excluding the charge, the company's earning rose to 82 cents per share from 75 cents per share a year earlier, beating analysts' forecasts.

After the announcement, shares in Halliburton rose 5.9%.

'Challenging year'

Oil and gas producers around the world have cut spending amid falling crude prices, the ongoing credit crunch and declining energy consumption.

The cost-cutting steps have hit oilfield services companies.

On Friday, another oilfield services provider, Schlumberger, reported a fall in quarterly profits and said it was cutting 5,000 jobs out of 87,000 worldwide.

"It is clear Halliburton has successfully weathered multiple industry downcycles, and it is clear 2009 will be a challenging year for both the company and the industry," Halliburton's chief executive Dave Lesar said in a statement.