This is the huge advantage DRYS has. The time charters on the Capes are 2.5 times the spot rate now. The tanker rates are surging.
That's about $60 million going to DRYS.
It's been four years now and it has been sustained quite nicely. Started at 60 cents, now at $1. I have received $13.82 per share in dividends for shares averaging $26. Beat that with a t-bill.
If he actually knew anything about tankers, he'd know that a 12 year old is NOT considered old by any stretch. Rightships, the major tanker vetting outfit, automatically downgrades a tanker at age 18, not 12. And any inspection of NAT's vessels would reveal very high levels of maintenance. NAT will likely undertake fleet renewal when he time is correct, not when some newbie analyst says it's time. What a crock.
100%. Any money they earn is gross profit. The one at $24k a day adds $1000 per panamax, so they all make money if you apply the ORIG dividend to the panamax fleet. Capes are already at an average TCE of $27,630 with the lowest about to be reset at least $5k higher when it gets renewed. Time charters are being done well above spot.
So the bulkers and tankers are debt free, basically.
But, the "analysts" said the sector was weak. Maybe they don't know what they are talking about?
Much uncertainty removed. Add in the dividend to Q2, take out the refi costs at ORIG, run up ORIGs profit and watch the rates start to rise smartly in a few months.
"That divvy Orig declared was a one time deal." That's a lie. Or are you really so stupid that you don't understand the term "quarterly"? I KNOW you don't understand non-cash depreciation.
1. Panamax earnings have a component of December BDI highs. A charter signed at the peak does not start for a couple of weeks and lasts for several. DRYS panamax fleet should have earned the same or slightly better in Q1 than in Q4.
2. One Cape ended a time charter. It likely earned more than it's $10k charter.
3. Supra rates held strong through Q1.
4. Suezmax and Aframax rates spiked and likely contributed more to Q1 than Q4.
Should all combine to meet analyst expectations. Q2 won't be any great shakes. It is Q3 and beyond that will be when earnings really ramp up.
Who cares what spot rates for Capes are when DRYS vessels are on time charters. The most recent was set at $20,000. The one expiring now will also be set at $20,000 or more and will RAISE the average $769 per day to $29,000 when it happens.
Tanker rates will firm up soon. DRYS is now a buy and hold through at least 2015.
I think it will be $1.03.
into another one. DRYS is fine. Only idiots that don't understand financials say otherwise. And they are most likely just lying. How does a company with $3 billion in assets and $1.5 billion in debt and the ability to cover all expenses and payments due go sideways in a rising rate environment for their fleet? They don't.
No problem with all their assets being worth TWICE as much as they owe in total.
Only an idiot would suggest otherwise.