Offshore rig provider Transocean is reportedly planning to suspend its dividend and may record $2 billion in impairments.
According to Bloomberg, the company is planning to take 2 billion Swiss francs, or $2.13 billion, in asset impairments as demand for rigs continues to slide.
Transocean will host an extraordinary general shareholders meeting on October 29 where it will seek approval for a dividend suspension.
The company plans to halt the third and fourth installments of its dividend payments, the Wall Street Journal said.
The $0.15 per share quarterly dividend was scheduled to be paid out in December and March and was approved in May.
The company’s board is also seeking to lower the par value of its shares in order to shrink its balance sheet loss, Marketwatch noted.