Transocean Takes $992M Charge On Drilling Business As Oil Slumps


Feb 26 (Reuters) – Offshore rig provider Transocean Ltd wrote down the value of its contract drilling business by $992 million in the fourth quarter as demand slumped due to a steep fall in oil prices.

As a result of the impairment charge, Transocean has no goodwill remaining on its balance sheet, the company said in a statement late on Wednesday.

Demand for offshore rigs has weakened as oil producers scale back drilling and slash spending due to a near-50 percent fall in oil prices since June.

Transocean reported net loss of $739 million, or $2.04 per share, attributable to controlling interest for the fourth quarter ended Dec. 31 compared with a profit of $233 million, or 64 cents per share, a year earlier.

Moody's Investors Service cut its rating on Transocean's $9.09 billion debt to junk on Wednesday.

(Reporting by Swetha Gopinath in Bengaluru; Editing by Kirti Pandey)

Copyright 2016 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Columbia, SC
Project Manager
Expertise: Engineering Manager
Location: Atlanta, GA
Project Manager
Expertise: Engineering Manager|Project Engineer
Location: Raleigh, NC
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours