Atwood scraps semi-sub rig as red ink spills
- Business & Finance
Offshore drilling contractor Atwood Oceanics has sold one of its semi-submersible drilling rigs for scrap after recording a loss and decrease in revenues in the first quarter 2017.
The offshore driller said on Monday that it had recognized a net loss of $28.9 million on revenues of $167.7 million for the first quarter 2017 compared to net income of $122.4 million on revenues of $296.4 million for the corresponding period of 2016.
During the quarter, Atwood concluded that the semi-sub rig Atwood Eagle and its materials and supplies were impaired so the company wrote them down.
The driller recorded a non-cash impairment charge of approximately $59 million, which includes a write-down of property and equipment and deferred costs of $49.6 million, a write-down of inventory of materials and supplies that was specific to the Atwood Eagle of $8.4 million, and accrued estimated transaction costs of $1 million.
On May 5, 2017, Atwood executed a sale and recycling agreement for the Atwood Eagle according to which the rig and its equipment and machinery will be sold to a third party to be demolished and recycled.
Offshore Energy Today Staff