Loews posts unexpected loss on asset writedowns on eight rigs

Loews missed analyst estimates for its second quarter earnings as the conglomerate´s contract driller company Diamond Offshore booked impairment charges on the value of eight rigs.

Overall, the company clocked in with revenues of $2.35bn for the quarter, compared to analyst estimates of $2.32bn.

Despite that top-line growth, Loews reported a $65m loss after tax compared to a $170m profit a year ago. On a per share basis, the loss was 19 cents compared to 46 cents in profit in the year-earlier period

Diamond Offshore´s earnings were hit by an impairment charge to the tune of $680m. Even absent that charge, "Diamond Offshore's earnings declined due to a substantial reduction in the number of rigs operating as compared to the year ago period partially offset by lower depreciation expense resulting mainly from the asset impairment charges recorded in 2015," the company said in a statement.

CNA Financial Corp, Loews´s main business unit, accounting for the lion´s share of the conglomerate's top-line, suffered a sharp drop in both revenues and net income.

Sales at CNA declined from $4.67bn one year ago to $2.34bn while profits before tax dropped from $471m to $277m.

As of 15:14 BST shares in Loews were slipping 1.02% to $40.91.