NEW YORK (TheStreet) -- Shares of Transocean (RIG - Get Report) were dropping 5.18% to $10.44 early Wednesday afternoon after British authorities launched an investigation into a rig crash in Scotland earlier this week.
A Transocean rig ran aground off the west coast of Scotland on Monday after breaking free from a tug boat during a storm, the Wall Street Journal reports.
The semi-submersible rig was being moved from Norway to Malta and had roughly 280 metric tons of diesel aboard. Despite a reportedly low risk of pollution, environmental concerns have grown after a thin sheen of diesel began to appear on waters near the crash site in the days following.
A team of salvage experts has been airlifted onto the rig amid the severe weather.
Also, oil prices are falling this afternoon after the U.S. Energy Information Administration released data this morning indicating that crude stockpiles had risen by 1.1 million barrels for the week ended August 5, fueling a drop in oil prices.
OPEC member Saudi Arabia also reported this morning that the country's output reached a record high of 10.67 million barrels per day in July, spurring further concern of a global oversupply.
Crude oil (WTI) was falling 1.78% to $42.01 per barrel while Brent crude declined 1.6% to $44.26 per barrel.
Transocean is a Swiss offshore contract drilling company.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C-.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: RIG