Transocean profits slide on oil spill costs

5th August 2010, Comments 0 comments

Transocean, the Swiss-based company which owns the BP-leased offshore rig behind the huge Gulf of Mexico oil spill, on Wednesday reported a net drop in profits for the second quarter of 11.3 percent to 715 millions dollars.

However the loss of the platform was largely compensated by insurance companies.

The results were better than expected by analysts questioned by the AWP agency, who had predicted a net profit of between 569 and 579 million dollars (432 million to 440 million euros).

Operating results fell 14.6 percent to 957 million dollars and the sales volume was down 13.1 percent to 2.5 billion dollars between April and June.

Transocean pocketed 267 million dollars in compensation from insurance companies after losing the offshore rig after an April 20 fire.

On a pivotal day for the oil disaster, BP on Wednesday plugged and prepared to permanently seal its stricken well while officials announced most of the toxic crude was now gone.

© 2010 AFP

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