Canaccord Genuity Morning Coffee on Transocean (RIG): No Dividend for You!
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Price: $5.92 -1.5%
Rating Summary:
12 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
12 Buy, 17 Hold, 14 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Transocean (NYSE: RIG): No dividend for you!
Transocean was trading lower on Tuesday after it said that its Q4 results would reflect an impairment charge and that it would not be proposing an annual dividend this year. Management said the decision on the dividend was based on multiple factors, including the need to keep its balance sheet strong and maintaining an investment grade rating on its debt. The company has had issues in bringing its deepwater rigs up to new standards that have been put in place by regulators in the wake of the BP (BP) oil spill. Transocean was the owner of the rig involved in the 2010 Gulf of Mexico spill. The charge to reported with Q4 results on February 28 is tied to the impairment of “a substantial portion of the goodwill associated with” its contract drilling services unit. It is due to the decline in the unit’s market value. Management said the impairment assessment has not yet been completed, but it is hoping to have the assessment done by March 31. As of September 30, 2011, the goodwill tied to the unit totalled about $8 billion.
Transocean was trading lower on Tuesday after it said that its Q4 results would reflect an impairment charge and that it would not be proposing an annual dividend this year. Management said the decision on the dividend was based on multiple factors, including the need to keep its balance sheet strong and maintaining an investment grade rating on its debt. The company has had issues in bringing its deepwater rigs up to new standards that have been put in place by regulators in the wake of the BP (BP) oil spill. Transocean was the owner of the rig involved in the 2010 Gulf of Mexico spill. The charge to reported with Q4 results on February 28 is tied to the impairment of “a substantial portion of the goodwill associated with” its contract drilling services unit. It is due to the decline in the unit’s market value. Management said the impairment assessment has not yet been completed, but it is hoping to have the assessment done by March 31. As of September 30, 2011, the goodwill tied to the unit totalled about $8 billion.
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