Rig contractor Transocean Ltd said it expected to incur impairment charges of $2.76 billion in the third quarter and would delay its results for the period, sending its shares down as much as 10 percent premarket.
Rig operators such as Transocean have been battered this year as new rigs enter service, adding to an already oversupplied market.
Day rates for offshore rigs are expected to drop further over the next few quarters as oil companies shy away from expensive offshore production.
Transocean is the owner of the world’s largest offshore drilling fleet.
The company was expected to report after market close on Thursday.
Revenue at Transocean is expected to fall 15 percent – its steepest in three years – according to Thomson Reuters I/B/E/S estimates.
Analysts on average were expecting the company to report an adjusted profit of 83 cents per share on revenue of $2.20 billion, according to Thomson Reuters I/B/E/S.
Unit Transocean Partners LLC also delayed its quarterly results.
Transocean’s shares were down about 9 percent at $27.42 in premarket trading on Friday.
Up to Thursday’s close, Transocean’s shares had fallen 40 percent this year.