Earnings for Transocean fell of the cliff to the tune of 48 percent from the same quarter last year, as effects of the BP (NYSE:BP) Gulf oil spill linger, and uncertainty over liability and when drilling in the Gulf will resume weighs on the company, as it does on all with exposure to the oil spill.
Particularly harmful was the oil moratorium, which while officially lifted, effectively remains in place because of the permitting process and time it will take to comply with new regulations put in place.
Net income for the quarter plummeted to $368 million, or $1.15 a share, down from $710 million, or $2.20 a share last year.
Revenue was also down, falling from $2.82 to $2.31 year over year.
While analysts had expected a drop in performance, it was much worse than the expected $2.47 billion in revenue and $1.36 earnings per share looked for.
Costs were a major factor, with an increase in insurance premiums, lawsuits, one-time costs, and retiring debt all taking a toll on the company's performance.
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