Atwood scraps semi-sub rig as red ink spills

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.

The 1982-built drilling rig has been idle since May last year after its contract with Woodside got transferred to Atwood’s other, younger rig.

Offshore Energy Today Staff

Related news

List of related news articles