Transocean's $1 Billion in Cost Cuts Fails to Excite Investors
- Shares slump after company reports sales declined 29 percent
- Company to cut operating and maintenance costs by 25%-30%
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A Transocean Ltd. plan to slash more than $1 billion in costs next year wasn’t enough to excite investors of the world’s largest offshore rigs provider as signs warn of more pain ahead.
The Vernier, Switzerland-based company said Thursday it expects to cut operating and maintenance costs by 25 to 30 percent in 2016 from this year’s projection of as much as $3.75 billion. A day earlier, the company reported third-quarter revenue tumbled 29 percent and said in a federal filing that it doesn’t expect the number of contract drilling awards to increase next year. Shares fell as much as 7.9 percent.