Transocean announces impairment charges and delays release of Third Quarter 2014 results; results to include a non-cash charge of $1.97 bln related to the impairment of goodwill
Co announced that it expects its third quarter 2014 results to include a non-cash charge of $1.97 bln related to the impairment of goodwill.
- The charge is the result of impairment testing conducted due to the decline in the market valuation of the contract drilling business.
- As of June 30, 2014, goodwill was ~ $2.99 bln. The co also expects an impairment of the Deepwater Rig asset group of $788 mln due to the deterioration of the market outlook, reflecting the recent decline in dayrates and utilization for this particular asset class.
- Due to the complexities involved in determining these impairments, the co is delaying its third quarter earnings release and conference call originally scheduled for 9:00 a.m. EST, 3:00 p.m. CET, Friday, November 7, 2014, and will issue a subsequent announcement with a revised date and time.