Transocean Ltd. has announced that it expects its third quarter 2014 results to include a non-cash charge of $1.97 billion related to the impairment of goodwill.
The charge, the offshore drilling contractor has explained, 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 approximately $2.99 billion.
The company has also said it expects an impairment of the Deepwater Rig asset group of $788 million due to the deterioration of the market outlook, reflecting the recent decline in dayrates and utilization for this particular asset class.
