By Josh Beckerman
Offshore driller Transocean Ltd. (RIG) plans to dispose of two
more rigs, and expects related noncash charges of $90 million to
$110 million after tax.
The company said its GSF Aleutian Key and Sedco 707 are now
classified as held for sale.
As of March 18, Transocean operated 68 mobile offshore drilling
units. At that time, the company said it expected charges of $300
million to $325 million as it announced the disposal of four
rigs.
The company spent billions of dollars to expand its fleet just
before oil prices collapsed. It has since tried to correct
operations, selling and disposing of rigs and "stacking," rather
than idling, more of its rigs. "Stacked" rigs, typically idled for
longer periods, have lower operating costs as they are unmanned or
staffed with a reduced crew.
Write to Josh Beckerman at josh.beckerman@wsj.com
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