Transocean Ltd. Announces Goodwill Impairment Charge
ZUG, SWITZERLAND, Feb 20, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that the company expects its fourth quarter 2011 results to include a non-cash charge related to the impairment of a substantial portion of the goodwill associated with its contract drilling services reporting unit. The charge, which has no tax effect, is the result of the annual impairment test and is primarily due to the decline in the market valuation of the contract drilling business. The company has not yet fully completed the measurement because of the complexities involved in determining the implied fair value of goodwill. In accordance with U.S. Generally Accepted Accounting Principles, the company anticipates that it will complete its goodwill impairment assessment by March 31, 2012. As of September 30, 2011, goodwill associated with the contract drilling services reporting unit was approximately $8 billion.
Transocean expects to release its fourth quarter and full year 2011 results on Tuesday, February 28, 2012, following the close of trading on the NYSE.
Statements included in this news release regarding Transocean's estimate of goodwill impairment for the fiscal year ended December 31, 2011, are forward-looking statements that involve certain assumptions. These statements are based on currently available competitive, financial, and economic data along with our current operating plans and involve risks and uncertainties including, but not limited to, market conditions, Transocean's results of operations and other factors detailed in "Risk Factors" and elsewhere in Transocean's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean owns or has partial ownership interests in and operates a fleet of 133 mobile offshore drilling units consisting of 50 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 48 Standard Jackups and one swamp barge. In addition, we have two Ultra-Deepwater Drillships and four High-Specification Jackups under construction. Transocean's fleet specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services. We believe we operate one of the most versatile offshore drilling fleets in the world.
For more information about Transocean, please visit the website at www.deepwater.com.
SOURCE: Transocean Ltd.