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 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add 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.
Most Popular Articles