Transocean Ltd. Announces Goodwill Impairment Charge
ZUG, SWITZERLAND, Feb 20, 2012 (MARKETWIRE via COMTEX) --Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that thecompany expects its fourth quarter 2011 results to include a non-cashcharge related to the impairment of a substantial portion of thegoodwill associated with its contract drilling services reportingunit. The charge, which has no tax effect, is the result of theannual impairment test and is primarily due to the decline in themarket valuation of the contract drilling business. The company hasnot yet fully completed the measurement because of the complexitiesinvolved in determining the implied fair value of goodwill. Inaccordance with U.S. Generally Accepted Accounting Principles, thecompany anticipates that it will complete its goodwill impairmentassessment by March 31, 2012. As of September 30, 2011, goodwillassociated with the contract drilling services reporting unit wasapproximately $8 billion.
Transocean expects to release its fourth quarter and full year 2011results on Tuesday, February 28, 2012, following the close of tradingon the NYSE.
Statements included in this news release regarding Transocean'sestimate of goodwill impairment for the fiscal year ended December31, 2011, are forward-looking statements that involve certainassumptions. These statements are based on currently availablecompetitive, financial, and economic data along with our currentoperating plans and involve risks and uncertainties including, butnot limited to, market conditions, Transocean's results of operationsand other factors detailed in \"Risk Factors\" and elsewhere inTransocean's filings with the Securities and Exchange Commission.Should one or more of these risks or uncertainties materialize (orthe other consequences of such a development worsen), or shouldunderlying assumptions prove incorrect, actual outcomes may varymaterially from those forecasted or expected. Transocean disclaimsany intention or obligation to update publicly or revise suchstatements, whether as a result of new information, future events orotherwise.
Transocean is a leading international provider of offshore contractdrilling services for oil and gas wells. Transocean owns or haspartial ownership interests in and operates a fleet of 133 mobileoffshore drilling units consisting of 50 High-Specification Floaters(Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersiblesand drillships), 25 Midwater Floaters, nine High-SpecificationJackups, 48 Standard Jackups and one swamp barge. In addition, wehave two Ultra-Deepwater Drillships and four High-SpecificationJackups under construction. Transocean's fleet specializes intechnically demanding sectors of the global offshore drillingbusiness with a particular focus on deepwater and harsh environmentdrilling services. We believe we operate one of the most versatileoffshore drilling fleets in the world.
For more information about Transocean, please visit the website atwww.deepwater.com.
SOURCE: Transocean Ltd.