Transocean Ltd (NYSE:RIG) shares are trading higher premarket Wednesday. On Tuesday, the company disclosed a 365-day contract for the Deepwater Atlas with BP p.l.c. (NYSE:BP) in the U.S. Gulf of Mexico.

The program is set to begin in the second quarter of 2028. The contract, including a 365-day option, is expected to add around $232 million to the backlog, excluding mobilization fees, with no additional services provided.

Last week, the company announced that a subsidiary has agreed to sell the Development Driller III and associated assets for $195 million and the Discoverer Inspiration and related assets for $147 million.

The company stated that the total sale amount of $342 million will result in a non-cash charge of $630 million—$645 million in the third quarter due to asset impairment.

In July, the company reported an adjusted EPS of $(0.15), missing the estimate of $(0.10), and sales of $861 million, falling short of the $862.6 million estimate.

As of July 2024, Transocean's backlog stood at $8.64 billion.

Investors can gain exposure to the stock via Exchange Traded Concepts Trust Range Global Offshore Oil Services Index ETF (NYSE:OFOS) and SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF (NYSE:XES).

Price Action: RIG shares are up 4.59% at $4.10 premarket at the last check Wednesday.

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