Seadrill books $1.2 billion impairment, eyes restructuring

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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.