Why Transocean Stock Crashed -- Then Recovered -- Today
Transocean (NYSE: RIG) stock got a big jolt on the morning of Aug. 3 and tumbled 12% by 10 a.m. EDT. It found some respite as the day progressed, though, and closed the day down only about 3%.
The market dumped shares of the offshore oil and gas drilling services company as it got hold of its second-quarter numbers reported late in the evening of Aug. 2. But investors seem to have spotted a silver lining in the company's outlook.
At a time when pockets of the oil and gas industry are making money off this year's rally in oil prices, Transocean's contract drilling revenue slumped 29.4% year over year and its adjusted net loss ballooned to $109 million from $1 million in Q2 2020. Although consensus estimates called for a loss, the sharp drop in Transocean's revenue caught the market off guard.
Source Fool.com
