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Transocean Ltd the drilling contractor that lost its rig in the BP Plc well blowout in April, reported a drop in profit for the quarter due to resulting legal costs and reduced income. Second-quarter net profit fell to $715 million, or $2.22 per share, from $806 million, or $2.49 per share, a year earlier, with an after-tax cost of $69 million associated with the well blow-out. Revenue fell 13 percent to $2.5 billion.
The profit figure also includes a $267 million gain on insurance recoveries for the lost rig, offset by $18 million in legal costs not associated with the Gulf of Mexico well.Transocean's adjusted profit per share was $1.44 per share, whereas analysts had expected $1.68 per share, according to Thomson Reuters I/B/E/S.
RIG 2Q10 Charts >>LINK
Still hanging over the company is the grey cloud of future lawsuits. Close to 250 lawsuits or claims have been filed against Transocean, the company which owns the BP-leased offshore rig behind the huge Gulf of Mexico oil spill, a filing by the firm showed Thursday. >>LINK However, the stock is up today, after the company said in a filing that its contract with BP PLC could protect it from liabilities and fines in the Deepwater Horizion explosion on April 20.