Transocean to Book $1 Billion Charge in Fourth Quarter
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Transocean Ltd., the world’s largest offshore driller, said it recorded a $1.01 billion after-tax charge for its 2010 fourth quarter as the value of its shallow-water fleet plunged amid slackening demand.
Transocean’s $3.16 per diluted share non-cash charge is due to projected declines in daily lease rates and utilizations of its so-called standard jack-up fleet, the Vernier, Switzerland-based company said today in a statement. The charge is 46 percent of the company’s projected 2010 net income of $2.18 billion, according to 20 analysts’ estimates compiled by Bloomberg.