After initially delaying announcing its third quarter results, Transocean reported a third-quarter loss of $6.12 per share.
The confirmation comes after the firm was hit by $2.76billion worth of impairment charges, forcing the firm to push back its schedualed financial announcement.
Revenue for its third quarter earnings decreased by $58million to $2.27billion.
The firm credited lower revenue efficiency and an increase in out-of-service time for the drop.
The decline comes after a period which saw the firm fulfil its biggest batch of orders for rigs since the beginning of deep-water drilling in the 1970s.
But dipped oil prices and cancelled order books have since shifted the company into a period of oversupply.
A company spokesperson said: “Operating and maintenance expenses increased $105million sequentially to $1.318billion, as anticipated.
“The increase was due primarily to higher shipyard expenses mainly associated with planned special periodic surveys and other maintenance on several harsh environment floaters as well as contract preparation on the Transocean Amirante.”
In its latest financial report, the firm broke down the share dip line-by-line.
A total of $1.9billion, or $5.29 per diluted share, was the result of a non-cash goodwill impairment. “The impairment is due primarily to the decline in the market valuation of the company’s contract drilling services business,” according to the firm.
A total of $693million, or $1.91 per diluted share, was a result of the associated impairment of the Deepwater Floater asset group due to the deterioration of the market outlook.
A total of $7million, or $0.02 per diluted share, was a result of impairments of assets classified as held for sale.
A total of $4million, or $0.01 per diluted share, was associated with the loss on disposal of assets and other miscellaneous items.
Finally a total of $3million, or $0.01 per diluted share, was due to costs related to one-time termination benefits.
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