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Transocean to delist from Swiss exchange

Rig company reported 14 percent drop in revenue in its latest report.

By Daniel J. Graeber
Transocean to delist from Swiss exchange
Offshore rig company Transocean announces plans to pull its shares off the Swiss stock exchange. File photo by James Jones Jr./Shutterstock

ZUG, Switzerland, Nov. 23 (UPI) -- Offshore rig company Transocean said it was taking down its stock position from the Swiss exchange, with approval set for the end of the year.

Transocean announced the intent to delist from the SIX Swiss Exchange. Listing authorities are expected to issue their consent before the end of the year and full delisting is scheduled during the first quarter of 2016.

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"The company will remain incorporated in Switzerland and its shares will continue to be listed and traded on the New York Stock Exchange," it said in a statement.

The company offered no reason for the delisting. In the wake of the Deepwater Horizon tragedy and subsequent oil spill in the Gulf of Mexico in 2010, the company moved its headquarters from Cayman Islands to Switzerland to take advantage of what it said was the country's stable tax regime.

Total revenues for the rig company were $1.61 billion, down 14 percent from the previous quarter. Adjusted net income of $316 million was 22.5 percent lower than second quarter 2015.

Lower crude oil prices means energy companies have less capital to invest in oil and gas exploration, a trend reflected in a decline in the number of rigs actively engaged in exploration and production.

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Transocean in August cancelled plans to issue stock dividends, citing the deterioration in the offshore drilling market.

Rival rig company Hercules Offshore announced in mid-August it filed for bankruptcy as part of a financial restructuring effort in an era of lower crude oil prices.

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