Transocean will take the charge in the third quarter.

Transocean Ltd. (RIG) announced plans to retire six ultra-deepwater floaters at an impairment charge of $1.4 billion during the third quarter. 

Transocean shares traded up 2.97% to $9.35 in midday trading Friday. 

The rigs will be classified as held for sale and will be recycled in what the company says is an "environmentally responsible manner."

"We continue to enhance the quality of our fleet through the addition of new, high-specification assets, and the retirement of older, less competitive rigs," said Jeremy Thigpen, President and Chief Executive Officer. "We remain committed to providing our customers with the most technically capable and highest quality ultra-deepwater and harsh environment assets in the industry, and will continue to objectively evaluate our rigs and high-grade our fleet as the market evolves."

More of What's Trending on TheStreet:

More from Stocks

How to Play Netflix Ahead of This Week's Earnings and Beyond

How to Play Netflix Ahead of This Week's Earnings and Beyond

Chart of the Day: Delta and Dividends or Discounters and Demand Drivers?

Chart of the Day: Delta and Dividends or Discounters and Demand Drivers?

Striking Options: Global Crude Demand and Trade Tariffs

Striking Options: Global Crude Demand and Trade Tariffs

PG&E Stock Slides Another 17%

PG&E Stock Slides Another 17%

Ford and VW Confirm Alliance as Trade Wars, Emissions Rules Slow Global Markets

Ford and VW Confirm Alliance as Trade Wars, Emissions Rules Slow Global Markets