July 31 (UPI) -- After trading closed Monday, rig company Transocean posted second quarter revenues that beat analyst expectations, noting it was optimistic about the future.
The company, which has headquarters in Switzerland, reported total contract drilling revenues of $790 million for the second quarter, a 19 percent increase from the first quarter. Its adjusted net loss of $18 million was down 90 percent.
A review of the rig company's report from Zacks revealed earnings beat the consensus estimate by 4.75 percent.
"The company has topped consensus revenue estimates three times over the last four quarters," the review read.
Transocean's earning came amid mixed results from the energy sector. Rig company Diamond Offshore reported Monday that it was charging less overall to lease its rigs than last year with a net loss for the second quarter of $69 million. Elsewhere in the sector, total revenue for Schlumberger, the largest drilling services company in the world, was up 6 percent from the first quarter.
"Our industry-leading floater fleet, consistently strong operating performance, solid liquidity position, and enviable backlog, which includes several new contracts approximating $400 million, positions us well at a time when our optimism about the market's recovery is growing," Transocean President and CEO Jeremy Thigpen said in a statement.
The company is coming off dual contract wins in July and the recent acquisition of rival rig company Songa Offshore. About 3 percent of a $210 million net loss during the first quarter was associated with the costs from the acquisition. The second quarter was the first full quarter for operations of drillships placed in Transocean's portfolio after the deal with Songa.
On the negative side, Transocean reported its effective tax rate was up 42 percent, which included estimates costs associated with shifts from the new tax code in the United States that was supportive of large corporations in the first quarter.
"Cash flows from operating activities were $3 million, compared with $103 million in the prior quarter," Transocean reported. "The decrease was largely associated with increased interest payments, as well as income tax payments partly related to the aforementioned transition taxes."