Transocean profit tumbles after rig loss

Drilling firm Transocean has reported that second-quarter net profit fell 11 per cent as it lost revenue from the ill-fated rig it leased to BP in the Gulf of Mexico.

The Swiss based contractor said profit was down to $715 million (SFr753 million) due to resulting legal costs and the reduced income.

The profit was lower than expected but shares of the world’s largest offshore rig contractor rose by more than four per cent in late morning trading on Thursday in Zurich to SFr59.20, its highest level in about six weeks.

The BP disaster in April brought most drilling activity to a halt in the Gulf, where Transocean had 14 other deepwater rigs under contract.

Transocean said litigation filed over the oil spill would hold up payment of its quarterly dividend which must be approved by local authorities under Swiss law.

Shares of Transocean have lost about 40 per cent of their value since the deadly explosion on April 20 that sank the Deepwater Horizon with the loss of 11 lives.

There are market fears that the company may be found liable for some of the costs that resulted from the world’s worst accidental maritime spillage of oil.

swissinfo.ch and agencies