John Fredriksen’s Seadrill slumped to a massive net loss of $1.9bn in the third quarter hit by impairment charges to investments and goodwill.

Seadrill said that it had taken $1.8bn non-cash impairment charges to investments and goodwill in the third quarter. At an operating profit level the company reported $291m operating loss in Q3 2015 compared to $461m profit in the same period a year earlier.

Revenues in Q3 were down 24% year-on-year at $985m.

The company is in talks to delay delivery of its 14 newbuild rigs it has on order at yards in China, South Korea and Singapore

“We have had a strong operating quarter and we continue to make good progress on our cost savings program. Our discussions with the shipyards continue to be constructive regarding deferrals,” said Per Wulff ceo of Seadrill.

Looking ahead 2016 is expected to be another tough year. “We believe that market conditions are likely to remain challenging through 2016 and the coming quarters will provide insight into the 2017 environment,” he said.