Transocean delays 3rd-quarter earnings report to digest more than $2 billion in charges
Offshore rig owner Transocean says lower demand for its rigs is leading to charges totaling more than $2.7 billion, forcing it to delay a third-quarter earnings report scheduled for Friday.
The charge to write down the value of some of its businesses is partly a result of lower rates that Transocean is getting for use of its drilling rigs. Companies that explore for and produce oil are dialing back investment because of sharp declines in the price of oil, which is reducing rig demand.
U.S.-traded shares of the Swiss company started sliding shortly before markets opened.
Transocean said Friday it expects results from the quarter to include a non-cash charge of nearly $2 billion tied to its contract drilling business. It also anticipates a $788 million impairment of its Deepwater Rig asset group.