DryShips Lags Q2 Earnings, Beats Rev

Zacks

DryShips Inc. (DRYS) declared mixed financial results for the second quarter of 2013. Quarterly GAAP net loss was $18.2 million or a loss of 5 cents per share, remaining same year over year. However, adjusted (excluding one-time charges) loss per share in the second quarter of 2013 was 8 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. Quarterly total revenue was $336 million, remaining almost same year over year but surpassed the Zacks Consensus Estimate of $328 million.

Quarterly total operating expenses were $297 million, up 3.8% year over year. This was mainly due to higher voyage expanse, higher vessel operating expenses and expenses for legal settlement. Operating income in the reported quarter was $39.1 million compared with $50 million in the prior-year quarter. Adjusted EBITDA was $112.3 million compared with $140.2 million in the prior-year quarter.

At the end of the first half of 2013, DryShips had $315.7 million of cash & cash equivalents and $4,436.2 million of outstanding debt on its balance sheet compared with $315.7 million of cash and cash equivalents and $4,241.8 million of outstanding debt at the end of 2012. At the end of the reported quarter, the debt-to-capitalization ratio was 0.53 compared with 0.52 at the end of 2012.

Drybulk Carrier Segment

The Drybulk Carrier segment generated $48.3 million in revenues, down 22.7% year over year. Time charter equivalent revenues were $42.4 million, down 27.6% year over year. Time charter equivalent TCE rate was $12,756, down 30.4% year over year. The total voyage days per fleet were 3,326, down 3.9% year over year.

Oil Tanker Segment

The Tanker segment generated $27.9 million in revenues, up by a whopping 174.2% year over year. Time charter equivalent revenues were $9.1 million, up 7.7% year over year. Time charter equivalent TCE rate was $10,004, down 34.7% year over year. The total voyage days per fleet were 910, up 64.9% year over year.

Offshore Drilling Segment

Quarterly revenues from Drilling contracts were approximately $259.8 million, down 1.4% year over year. DryShips controls a 59% stake in its majority owned deepwater oil drilling unit, Ocean Rig UDW Inc. (ORIG). At the end of the second quarter of 2013, Ocean Rig had an order backlog of approximately $6 billion. 

Other Stocks to Consider

DryShips currently has a Zacks Rank #3 (Hold). Other stocks to consider in the shipping industry are Paragon Shipping Inc. (PRGN) and Euroseas Ltd. (ESEA). While Paragon currently has a Zacks Rank #1 (Strong Buy), Euroseas carries a Zacks Rank #2 (Buy).

Read the Full Research Report on DRYS

Read the Full Research Report on ORIG

Read the Full Research Report on ESEA

Read the Full Research Report on PRGN

Zacks Investment Research



More From Zacks.com

Rates

View Comments (0)