Transocean (NYSE:RIG) Drops $800 Million on $1 Billion Write-Down

After the explosion on their Deepwater Horizon oil rig in the Gulf of Mexico, which was operated by BP (NYSE:BP), Transocean (NYSE:RIG) has struggled to generate revenue, and was forced to book a $1 billion charge, resulting in a loss of $799 million in the fourth quarter.

For the quarter Transocean had a net loss of $2.51 a share, reversing a profit of $2.24 a share, or $723 million, in the same quarter last year.

Revenue for the quarter dropped 21 percent to $2.16 billion from $2.73 billion.

Excluding charges, adjusted earnings came to 68 cents a share, missing the 88 cents a share estimated by analysts polled by FactSet. Revenue was also lower than the $2.28 billion projected by analysts.

Charges in the quarter came to $1.02 billion, or $3.19 a share, which included $1.01 billion to account for a current and estimated decline in day rates and utilization, and a loss on the retirement of debt.

Separately, Transocean booked expenses of $28 million, or 8 cents a share, in connection to the loss of the Deepwater Horizon oil rig.