$RIG Reverses 20% afterhours

Transocean (NYSE:RIG) -5.3% after-hours following a larger than forecast Q1 loss and a 4% Y/Y drop in contract drilling revenues to $759M, primarily due to reduced activity related to rigs that were idle and lower revenue efficiency.
The revenue decline occurred despite a full quarter of revenues from the recently reactivated ultra‑deepwater floaters Deepwater Mykonos and Deepwater Corcovado.
Q1 adjusted EBITDA was $235M, compared with adjusted EBITDA of $223M in previous quarter.
Q1 revenue efficiency was 94.4% vs. 98% in the year-ago quarter; rig utilization 60% vs. 56% a year earlier.
Average dayrate for Transocean's total drilling fleet rose 2.7% Y/Y to $314.9K, with improvements in harsh environment floaters and midwater floaters but a decline in dayrates for ultra-deepwater floaters.
Contract backlog was $9.6B as of the April fleet status report, down 21% Y/Y.
"We recognize the dramatic decline in oil prices, coupled with the continued uncertainties surrounding the containment of COVID-19... will invariably delay the contracting activity that we expected in 2020."