Seadrill books $1.2 billion impairment, eyes restructuring
Reuters
Published Jun 02, 2020 01:36AM ET
Updated Jun 02, 2020 01:55AM ET
OSLO (Reuters) - Seadrill (OL:SDRL) (N:SDRL) has written down the value of its oil drilling rigs by $1.2 billion and hired bankers and lawyers to evaluate a financial restructuring that could allow the company to reduce its $7.4 billion debt, it said on Tuesday.
The company on Monday announced its intention to delist from the New York Stock Exchange later this month, while maintaining its Oslo Bourse listing.
Seadrill, controlled by Norwegian-born shipping tycoon John Fredriksen, had been struggling even before the COVID-19 pandemic hit oil prices and dented demand for drilling rigs.
"This industry has two fundamental challenges which are emphasized by recent events - there are too many rigs carrying too much debt," Chief Executive Anton Dibowitz said in a statement.
"We recognize, along with others in the sector, that a number of our assets are increasingly unlikely to return to the market and need to be scrapped," he said.
Following the impairment, the company reported a net loss of $1.57 billion for the first quarter, an increase from a loss of $295 million during the same quarter a year ago.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.