Offshore drilling company Transocean reported a net loss for the first quarter of $392 million, or $0.34 per diluted share. 

The company expects delays with new contracts due to COVID-19 but says it expects to continue to deliver offshore drilling "industry’s best margins."

First-quarter 2020 results included net unfavorable items of $205 million, including $167 million, loss on impairment of assets, and $57 million loss on retirement of debt.

Transocean’s contract drilling revenues for the three months ended March 31, 2020, decreased sequentially by $33 million, primarily due to reduced activity related to rigs that were idle and lower revenue efficiency.

"These decreases were partially offset by a full quarter of revenues from the recently reactivated ultra-deepwater floaters Deepwater Mykonos and Deepwater Corcovado,” Transocean said.

"With the challenges we confronted related to COVID-19, I am very proud of the strong quarterly financial results we delivered,” said Jeremy Thigpen, President and Chief Executive Officer. 

“Through outstanding effort across our entire organization, we delivered revenue in line with our guidance, and at lower than projected costs; even with the additional hurdles we overcame crewing and equipping our rigs to meet their contractual requirements for our customers.

"Looking forward, we recognize the dramatic decline in oil prices, coupled with the continued uncertainties surrounding the containment of COVID-19, and the resumption of the global economy, will invariably delay the contracting activity that we expected in 2020.”

Transocean’s contract backlog was $9.6 billion, the biggest in the offshore drilling space, as of the April 2020 Fleet Status Report.

"… with our industry-leading backlog and proven track record for managing costs, we expect to continue to deliver industry-best margins. With continued strong operating performance, and the prudent management of our liquidity, Transocean is well-positioned to continue delivering the highest level of service while keeping our employees and our customers safe,” the CEO said.

While its backlog is $9,6 billion, Transocean’s long-term liabilities are around $10,4 billion. Debt due within one year is $581 million.