Transocean books $1bn Gulf charge as its losses worsen
TRANSOCEAN took a $1bn (£632m) charge related to the 2010 Gulf of Mexico oil spill yesterday, the clearest indication yet that the contract driller is preparing to settle the case.
Shares of Transocean, owner of the world’s largest offshore drilling fleet, rose five per cent on its solid quarterly results, and the prospect of closing out a liability that has loomed for nearly two years.
Barclays analysts said the market had expected a charge of about $3bn and, like many others, anticipated a settlement amount emerging in the days ahead.
“We had thought there was a 50/50 chance for a settlement before the trial but view the delayed trial start date as highly encouraging,” UBS analyst Angie Sedita added.
Transocean also took an estimated non-cash charge of $5.2bn in the fourth quarter resulting from goodwill impairment associated with its contract drilling services unit.
Its fourth-quarter net loss widened to $6.12bn, from $799m last year.
Fourth-quarter revenue rose 14 per cent to $2.4bn, partly due to two semi-submersible rigs that Transocean added when it bought Aker Drilling last year.