Transocean To Incur Impairment Charge Of Up To $645 Mln In Q3 Amid Asset Sale

(RTTNews) - Transocean Ltd. (RIG) announced Tuesday that a subsidiary of the Company entered into agreements with a third party to sell the Development Driller III and associated assets for $195 million and the Discoverer Inspiration and associated assets for $147 million, as part of its ongoing efforts to dispose of non-strategic assets.

The Company expects the sale of these assets, for an aggregate $342 million, will result in an estimated non-cash charge for the third quarter 2024 ranging between $630 million and $645 million associated with the impairment of such assets.

The transactions contemplated by the agreements are subject to customary closing conditions and are expected to close in the third quarter of 2024. The Company intends to use substantially all of the proceeds from these transactions to repay existing indebtedness.