Transocean Suspends Dividends, Suggesting Desperate Times, Desperate Measures?

Transocean - the world's largest offshore drilling contractor - which reported better-than-expected second quarter results last month, recently announced its plans to suspend the quarterly dividends for the remaining half of 2015. Additionally, the company is expected to recognize a non-cash impairment charge of $2 billion in the light of rapid deterioration in offshore drilling demand. While a dividend cut generally shows poorly on a company's future prospects, we view Transocean's decision to ...