The Sedco 707. Image courtesy of Transocean.

Services player Transocean said Thursday it will scrap another two floaters, bringing its total number of scrapped floaters to 18.

The Switzerland-based company said it will scrap the GSF Aleutian Key and Sedco 707 “in an environmentally responsible manner.”

The rigs are currently classified as held for sale.

The company expects its first quarter 2015 results to include an estimated non-cash charge of $90 million to $110 million net of taxes tied to the scrapping.

“As the company continues to evaluate the long-term competitiveness of its fleet, additional rigs may be identified as candidates for scrapping,” Transocean said.

Transocean delayed delivery of five Keppel jack-up rigs and idled two more rigs in February as upstreams continue to curb drilling activity amid low oil prices.

The company booked a $739 million fourth quarter net loss, or $2.04 per diluted share, and saw its fleet utilization rate drop to 72 percent from 75 percent during the previous quarter, Marketwatch said.

Earlier this year Steven Newman stepped down as president and CEO of Transocean after leading the company for nearly five years.


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