* Revenue up 16 pct at $8.70 bln
* Adj profit from cont ops $1.19 per share vs est $1.10
* Raises quarterly dividend to $0.18 from $0.15 (Adds executive comments; updates shares)
By Swetha Gopinath
Oct 20 (Reuters) - Halliburton Co, the world’s No.2 oilfield services provider, said there were no signs of a slowdown in drilling activity despite the recent 25 percent fall in oil prices.
Halliburton’s shares rose about 2.5 percent in early trading after the company reported a better-than-expected quarterly profit and raised its quarterly dividend.
“We believe industry fundamentals suggest that these lower prices are not sustainable,” Chief Executive Dave Lesar said on a post-earnings call.
Oil supply and demand would be back in balance in a “relatively short period of time”, he said.
North American customers and national oil companies have not indicated that activity levels will slow down, Lesar said.
Halliburton’s comments echo those of rivals Schlumberger Ltd and Baker Hughes Inc.
Market leader Schlumberger said it expected increased oil and gas spending in 2015 due to a rise in global demand, while Baker Hughes Inc said clients would rethink projects only if oil fell to and remained at $75 for a few months.
Oilfield services companies are unlikely to be hurt by sluggish prices in the near term because most of their operations are contract-based, analysts said.
Roughly 2.6 million barrels per day of world crude oil production comes from projects with a breakeven price in excess of $80 per barrel, the International Energy Agency said. This represents less than 3 percent of global third-quarter production of 93.2 million barrels per day.
Brent touched a four-low of $82.60 on Thursday, before recovering on Friday. It was down 1.65 percent at $84.73 at 10:51 a.m. ET on Monday.
Halliburton said revenue in North America grew nearly 22 percent in the third quarter ended Sept. 30, while operating income climbed 38 percent.
The company, which derives about half of its revenue from North America, also benefited from higher revenue in its international operations.
Halliburton’s revenue rose about 18 percent in the Middle East and Asia region - the highest increase among regions outside North America.
Net income attributable to the company rose 70 percent to $1.20 billion, or $1.42 per share.
Excluding items, profit from continuing operations was $1.19 per share, higher than the average analyst estimate of $1.10 per share, according to Thomson Reuters I/B/E/S.
Revenue rose 16 percent to $8.70 billion, beating the average analyst estimate of $8.53 billion.
The company raised its quarterly dividend to 18 cents per share from 15 cents.
Halliburton cut its loss contingency for the Macondo well blowout by $100 million during the third quarter. The company also recorded $95 million for an expected insurance recovery related to a $1.1 billion settlement it reached last month for a majority of claims related to its role in the 2010 oil spill.
Halliburton’s shares were down marginally at $52.12. (Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)