Friday, May 14, 2010

Nalco (NYSE:NLC) Up on Oil Spill

Nalco Holding (NYSE:NLC) is a company that provides oil-dissolving chemicals or dispersants to aid in battling oil spills when they occur, and consequently their sales of the chemical has increased exponentially since the explosion on the oil rig Deepwater Horizon has spewed oil across the Gulf.

BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) are all part of the reason for the increased demand of course, as they've been having their own battles themselves, as they've been putting the finger at one another as to who's responsible for the disaster, which claimed 11 lives.

Nalco has reportedly provided over 430,000 gallons of dispersants for those battling the oil slick, and that will continue to rise, even when the oil well is finally gotten under control.

Unfortunately for Nalco, at this time it only represents about 1 percent of their overall revenue, although that is sure to change, at least for the next quarterly report. The stock has risen strongly since the spill, although it settled some today, before resuming its upward movement.

No comments:

Post a Comment