Transocean Ltd ( RIG ) shares are trading lower Tuesday in the wake of the company’s first-quarter financial results. Here’s a rundown of the report.

What To Know: Transocean ( RIG ) reported first-quarter revenue of $763 million, which missed the consensus estimate of $787.043 million, according to Benzinga Pro. The company reported an adjusted earnings loss of 3 cents per share, which beat estimates for a loss of 14 cents per share.

“Over the first months of 2024, Transocean ( RIG ) has achieved some fairly significant milestones. First, we secured a 365-day extension on Deepwater Asgard at a rate of $505,000 per day, once again demonstrating the sustained tightness in the high-specification floater market as well as Transocean’s ability to command industry-leading dayrates,” said Jeremy Thigpen, CEO of Transocean ( RIG ).

“Additionally, earlier this month we finalized a $1.8 billion debt refinancing transaction, enabling us to improve near-term liquidity and start the process of simplifying our balance sheet.”

Operating and maintenance expenses totaled $523 million, compared with $569 million in the prior quarter. Transocean ( RIG ) said the sequential decrease was primarily due to cost savings on rigs that were idle in the first quarter, reduced contract preparation expenses and lower in-service maintenance costs.

“Looking ahead, we remain encouraged by the demand outlook and expect to see numerous long-term contracts awarded over the next several months,” Thigpen added.

Following the print, Benchmark analyst Kurt Hallead reiterated Transocean ( RIG ) with a Buy rating and maintained a price target of $8.

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RIG Price Action: Transocean ( RIG ) shares were down 11.4% at $5.16 at the time of publication, according to Benzinga Pro.