Transocean (RIG) Shrugs-Off NYT Report, Heads Higher After Earnings
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Shares of Transocean Ltd. (NYSE: RIG) are higher on Thursday after beating the Street for earnings in the second quarter, as investors shake off the article from the New York Times, which obtained confidential documents from the company about safety concerns it had before the rig explosion in the Gulf of Mexico in April.
The report for the Times showed that the company had concerns about other rigs besides the Deepwater Horizon a month prior to the explosion on April 20 that led to a spill of at least four million barrels of oil into the gulf.
Transocean currently has 14 rigs operating in the Gulf of Mexico, three of which were recently investigated for safety issues. One of the rigs owned by the company is being leased by BP PLC (NYSE: BP) to drill the relief well to attempt to stop the spill permanently.
Another revelation about the Deepwater Horizon rig included in the documents was the indication that the ballast system that kept the rig stable and afloat was experiencing problems, causing the rig to sink after the explosion.
Federal investigators have looked into whether deferred maintenance of the rig had led to it sinking. If the rig had not sunk after the explosion the well may not have been damaged.
Transocean, the world’s largest offshore drilling company, has largely escaped blame for the disastrous oil spill, leaving BP to take the brunt of the scrutiny.
The U.S. Justice Department has said that it will investigate the role of all companies involved in the spill. Transocean may face criminal charges if it is proven that it was aware of safety concerns before the accident without taking action.
Shares of Transocean are up 6.57 percent to $57.08 in midday market movement on Thursday.
The report for the Times showed that the company had concerns about other rigs besides the Deepwater Horizon a month prior to the explosion on April 20 that led to a spill of at least four million barrels of oil into the gulf.
Transocean currently has 14 rigs operating in the Gulf of Mexico, three of which were recently investigated for safety issues. One of the rigs owned by the company is being leased by BP PLC (NYSE: BP) to drill the relief well to attempt to stop the spill permanently.
Another revelation about the Deepwater Horizon rig included in the documents was the indication that the ballast system that kept the rig stable and afloat was experiencing problems, causing the rig to sink after the explosion.
Federal investigators have looked into whether deferred maintenance of the rig had led to it sinking. If the rig had not sunk after the explosion the well may not have been damaged.
Transocean, the world’s largest offshore drilling company, has largely escaped blame for the disastrous oil spill, leaving BP to take the brunt of the scrutiny.
The U.S. Justice Department has said that it will investigate the role of all companies involved in the spill. Transocean may face criminal charges if it is proven that it was aware of safety concerns before the accident without taking action.
Shares of Transocean are up 6.57 percent to $57.08 in midday market movement on Thursday.
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