SDRLF - Seadrill hit with another $2.9B writedown on its oil rigs

Seadrill (SDRLF) reports a $2.91B loss for H2 2020, including a $2.9B non-cash impairment on its assets due to a bleak outlook for the offshore oil drilling sector.The H2 writedown comes on top of $1.2B taken on the assets in H1.For the full year, Seadrill suffered a $4.66B loss, deeper than its $1.22B loss in 2019.Seadrill cites the pandemic's "ongoing adverse economic impact" as the cause of low offshore activity levels, so it is "preparing for a prolonged period of low demand," which is set to continue into 2021.The company says rig supply still exceeds demand, which will keep rates and utilization levels low this year, although scrapping older assets, alongside elevated demand forecast for late this year, will contribute to a rebalancing of fundamentals.Seadrill filed for Chapter 11 bankruptcy protection last month for the second time in four years.

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Seadrill hit with another $2.9B writedown on its oil rigs