Oil drilling group Transocean reports profit slump

5th May 2011, Comments 0 comments

Switzerland domiciled global offshore drilling group Transocean's first-quarter net profit fell by 54 percent, the company said on Thursday.

Net profit reached $310 million (208.6 million euros) compared to $677 billion a year earlier, the group added in a statement.

Transocean, which is locked in litigation over the Deepwater Horizon oil spill in the Gulf of Mexico a year ago, said it had booked an expenses of $23 million related to the incident over the period, mainly increased insurance premiums and legal costs.

The US group owned and operated the rig which exploded on April 20, 2010, killing 11 workers and causing millions of gallons of oil to pour into the Gulf of Mexico in the world's biggest maritime oil spill.

Transocean filed claims against well owner BP last month to counter the British oil giant's $40 billion lawsuit over the disaster, which devastated the environment on the US southern seaboard.

It claims that BP had agreed in the drilling contract to assume full responsibility for any loss or claim arising from pollution or contamination.

Revenues for the first quarter were $2.14 billion, up by just $17 million over the previous three months, the group said.

© 2011 AFP

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