Transocean (NYSE:RIG) has entered into agreements to sell two of its drilling vessels, the Development Driller III and Discoverer Inspiration, for a total of $342 million.
The transactions are part of the company's strategic plan to dispose of non-core assets and improve its financial structure.
The sales are expected to result in a substantial non-cash charge of between $630 million and $645 million for the third quarter of 2024 due to the impairment of the assets involved.
Transocean intends to allocate the vast majority of the proceeds towards repaying its existing debts, aiming to bolster its balance sheet and financial flexibility in the competitive offshore drilling market.
The sale is subject to customary closing conditions and is expected to close in the third quarter of 2024.