Halliburton second-quarter net down

HOUSTON, July 22 (Reuters) - Halliburton Co (HAL.N) said on Tuesday that second-quarter net profit fell sharply from a year earlier, when it recorded a large gain from the separation of its KBR Inc (KBR.N) engineering and construction arm.

Halliburton also said its outlook had brightened as high oil and gas prices prompt energy companies to spend more on drilling and production.

"Increasing energy prices, above levels previously envisioned, coupled with expanding drilling and completion budgets for our North American customers, bodes well for future activity," Chief Executive Dave Lesar said in a statement. "This strengthens last quarter's expectation that the next leg up in this extended cycle is near, and we anticipate the strategies we have employed will allow us to continue performing at a high level."

The company, the second-largest oilfield services company behind Schlumberger Ltd (SLB.N), said second-quarter net income declined to $507 million, or 55 cents per diluted share, from $1.5 billion, or $1.62 a share, a year earlier, when results included a $933 million gain from the separation of KBR.

Income from continuing operations rose to $623 million, or 68 cents per diluted share, from $595 million, or 63 cents a share.

Consolidated revenue climbed 20 percent to $4.5 billion. (Reporting by Anna Driver; Editing by Lisa Von Ahn and Carol Bishopric)