Transocean eyes $1.97B charge, delays earnings

Transocean Ltd. (RIG), one of the world's largest offshore-drilling contractors, Friday announced plans to book a $1.97 billion third quarter charge due to a drop in the value of its contract drilling business.

The Switzerland-based company also said it expects to record a $788 million impairment of its Deepwater Rig asset group "due to the deterioration of the market outlook, reflecting the recent decline in dayrates and utilization for this particular asset class."

As a result of the moves, Transocean delayed Friday's scheduled release of the company's third-quarter results, and similarly postponed a scheduled conference call with Wall Street analysts.

Transocean shares were down fractionally at $29.83 in afternoon trading after steeper drops earlier.

The company's announcement came amid a continuing drop in world oil prices that has buffeted the energy sector. Transocean shares are down more than 38% so far this year.

Among major shareholders who could take a financial hit on the decline and Transocean's latest moves is billionaire activist investor Carl Icahn, who held a roughly 5.75% stake in the company and has representatives on its board of directors.

Icahn declined to discuss his plans for the stock during an Oct. 9 interview with Fox Business Network.

"I don't go into what I'm going to do with my portfolio. But, obviously, I think you can imagine that it would be a stupid time for me to sell something that we're on the board of," said Icahn in response to questions about Transocean.

Icahn added that he could only sell during periods when restrictions on trading by insiders and major holders are not in place, "and I don't think the window's open."