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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.

“In light of the deterioration of the offshore drilling market and concerns regarding the timing of the market’s recovery, the company is evaluating its investments in affiliates as recorded on its Swiss standalone statutory balance sheet for impairment on an interim basis,” Transocean told Bloomberg.
Further details about possible impairment charges have not been disclosed yet.
Shares of Switzerland-based Transocean fell 5 points on Wednesday to $11.58 per share.