Just one of todays news releases for Nalco
THE ASSOCIATED PRESS May 3, 2010, 3:00PM ET text size: TT
Nalco shares jump on Gulf spill assistance
NEW YORK
Shares of Nalco Holding Co. soared Monday after the company said it is providing a chemical that's helping to disperse oil in the massive Gulf of Mexico spill.
The company said it will continue to provide these dispersants, which break up the crude and makes it biodegradable, for as long as cleanup crews need them.
Nalco, based in Naperville, Ill., said the products haven't had a significant impact on sales.
"But it is impossible to predict at this time how long this incident will last or the magnitude of the overall response needed," Nalco Chairman and CEO Erik Fyrwald said in a statement.
"Our suppliers have shown us great support in getting us the raw materials we need," Fyrwald added. "This has really been an industrywide effort to limit the impacts of the spill."
The spill occured after a rig owned by Transocean Ltd. and operated by BP PLC exploded and sank in the Gulf on April 20. An oil slick has already reached the coast of southeastern Louisiana. On Monday, oil producer BP said it will pay for all the cleanup costs from the spill.
Shares of Nalco leaped as much as 17 percent Monday to a new year high of $29.25. The stock recently was up $1.54, or 6.2 percent, at $26.27 in afternoon trading.
Shares of other chemical and detergent makers have also gained on hopes of a potential boost in business from the spill.
