OSLO (Bloomberg) — Seadrill Ltd, the offshore rig company domiciled in Bermuda, said operating earnings beat forecasts as the company deepened costs cuts to weather a market downturn provoked by the collapse of oil prices.

Earnings before interest, tax, depreciation and amortisation reached $528 million in the first quarter, 26 per cent lower than a year earlier, it said in a report yesterday. That beat the average estimate of $455 million in a Bloomberg survey of 18 analysts and the company’s own February guiding of about $450 million. Net income fell by more than 80 per cent to $74 million, short of the $194 million analyst forecast.

Seadrill, controlled by Norwegian billionaire John Fredriksen, achieved a rig utilisation rate of 96 per cent in the quarter and increased its target for cash savings for 2016 to $340 million from $260 million, it said.

“Our key priorities for the year are cost reduction, managing newbuild deferments and concluding our financing plans, while ensuring that we continue to maintain safe and efficient operations,” chief executive officer Per Wullf said in a statement. “We have made good progress in all three areas during the first quarter.”

Seadrill and other offshore drillers are suffering in the worst market downturn in a generation as a plunge in crude prices has forced oil companies to slash investments just as the rig industry was already facing a glut of new units. As more rigs go idle, operators have been forced to cut dividends and costs, lay off workers, accept lower rental rates, delay delivery of new units and scrap old ones and even file for bankruptcy protection.

Seadrill is negotiating with creditors and shareholders to restructure the industry’s highest debt load at almost $10 billion. It plans to have a solution in place by the end of the year, it reiterated in yesterday’s report. Analysts from Nordea AB and DNB ASA have estimated that will require at least $1 billion in new equity.

The company has over the past weeks swapped some of its debt for equity, reached a deal with banks to extend its three nearest credit lines, and sold its stake in SapuraKencana Petroleum Bhd to raise $195 million in cash.