It has been a rough few years for deepwater drilling specialist
Transocean (NYSE:
RIG). In addition to a recent
cyclical
downturn in offshore drilling, the company seemed to fall behind a bit
with its fleet and started losing business because of unexpected
downtime issues. Worst of all, however, was the terrible
BP (NYSE:
BP) Deepwater Horizon/Macondo rig accident and the substantial financial
liabilities that the company incurred for its role in the accident.
Now,
however, things seem to be turning around. The company has taken steps
to improve its fleet and rates are back on the way up. Most importantly,
at least in the near term, Transocean has reached a very favorable
settlement with the Department of Justice for its Macondo liabilities,
suggesting that the company is close to having this matter behind it.
Please read more here:
http://www.investopedia.com/stock-analysis/2013/A-Favorable-Settlement-Should-Open-The-Door-For-Transocean-To-Outperform-RIG-BP-ESV-SDRL0107.aspx
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