Transocean Ltd. (NYSE:RIG), which leased the Deepwater Horizon oil rig to BP (NYSE:BP) that exploded and resulted in the Gulf of Mexico oil spill, ended with lower utilization rates for the quarter, and their revenue dropped as a result, falling 12 percent.
Earnings dropped from $808 million, or $2.49 a share last year in the same quarter, to $720 million, or $2.22 a share this year.
Losses related to increases expenses of the oil disaster were part of the results for the quarter, although there was also an after-tax insurance gain in connection to the loss of the Deepwater Horizon rig itself.
Revenue dropped to $2.51 billion, 13 percent lower than last year, and below the $2.56 billion analysts estimated.
Utilization rates dropped from 84 percent to 64 percent year-over-year.
Uncertainty as to the fallout from the oil accident continues to weigh on the company, specifically in relationship to lawsuits. It isn't considered at fault in the accident itself.
Consequently, the dividend could be suspended indefinitely, although that has yet to be determined.
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