Friday, May 14, 2010

BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) Helping Nalco (NYSE:NLC) Grow

BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) are all hoping for the oil spill from the Deepwater Horizon explosion goes away, but in the interim, Nalco Holding (NYSE:NLC) is getting a nice bump in their unit which produces oil-dissolving chemicals or dispersants, which are being used to combat the oil slick forming from the leaking well.

At this time dispersants to battle oil spills are only 1 percent of the revenue of Nalco, but that's obviously about to change, as they've increased production by ten times normal in response to the disaster.

Shares in Nalco shot up quickly after news of the oil spill and that they would have a major part to play in helping manage it.

While dropping today, they seem to be ready to rebound again, although investors are probably understanding even with the increased business, it's only a small part of the company.

No comments: