NEW YORK (MarketWatch) — Halliburton Co. said Monday a surge in U.S. activity contributed to a $362 million increase in fourth-quarter profit, but the company’s seeing competitive pricing overseas as it looks deeper into its business for 2011.

At the same time, the Houston oil-service giant HAL, +1.74% said growing demand for fossil fuels globally will lift the company’s overseas fortunes this year, while a ramp up in the Gulf of Mexico is unlikely in the first half of the year.

Shares of Halliburton rose 0.9% to $39.55, after dropping early in the session.

Halliburton reported fourth-quarter net earnings of $605 million, or 66 cents a share, up from $243 million, or 27 cents, earned in the year-earlier period.

Without a charge of $17 million, Halliburton said income from continuing operations would have been 68 cents a share for the latest quarter.

Total fourth-quarter revenue rose to $5.16 billion, up from the prior year’s $3.69 billion.

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Analysts had expected Halliburton to earn 63 cents a share on revenue of $4.86 billion, according to the consensus in a survey by FactSet Research.

“The increase in horizontal drilling and activity in liquids-rich plays continued to drive service intensity leading to the highest United States revenue in the company’s history,” Chairman and CEO Dave Lesar said in the earnings release.

“Despite the macroeconomic trends that support a more constructive spending outlook, international pricing remains competitive,” Lesar said. “However, the improving oil-consumption demand levels combined with the industry’s declining spare capacity provides a more favorable outlook for oil services and technologies in 2011 and beyond.”

During the fourth quarter of 2010, Halliburton’s completion-and-production business generated revenue growth of 12%, to $3 billion, while drilling-and-evaluation revenue increased by 8%, reaching $2.2 billion.

Halliburton also said it had a “modestly profitable” quarter in Iraq, achieving this “several quarters ahead of schedule.”

Looking ahead, analysts expect Halliburton’s profit to increase in 2011, with a consensus estimate seen rising to $2.76 a share from the company's reported income from continuing operations of $1.97 a share in 2010.

In North America, Halliburton said it continues to expect improved prices, “in select basins where the demand for our integrated services is robust.”

Halliburton disclosed a payment of $17 million, or 2 cents a share, taken against results for the latest quarter. The charge is related to an indemnity payment for a settlement reached with the government of Nigeria, over allegations of improper payments made to officials of the African country.