Transocean Sinks on Revenue Miss (RIG)

Shares of Transocean

are trading lower in the after-hours trade following the release of the company's Q1 earnings results. Currently, shares are off by 1.915, trading at $67.15. The company reported Q1 EPS of $0.96 on revenues of $2.14 billion. Revenues decreased 16.9% year over year. This compares to the Street's estimate of $0.80 per share on revenues of $2.25 billion. First quarter contract drilling revenues were impacted by lower utilization and revenue efficiency. The company said, “Our Deepwater and Midwater Floater fleets experienced lower utilization due to the stacking of rigs, as well as increased shipyard time related to contract preparation, special periodic surveys and major maintenance projects. Compliance with new well control equipment certification requirements, higher standards for equipment condition and capacity constraints on our vendors contributed to reduced revenue efficiency among our Ultra-Deepwater and Deepwater Floaters. Partially offsetting lower contract drilling revenue was additional revenue from two newbuild rigs commencing operations. Other revenues increased primarily from additional drilling management services activity.” Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. The company operates in two segments: contract drilling services and other operations.