DryShips Lags on Q4 Earnings, Tops Rev

Zacks

DryShips Inc. (DRYS) declared mixed financial results for the fourth quarter of 2013. Quarterly GAAP net loss was $24.4 million or 6 cents per share compared with a loss of $129.9 million or 34 cents per share in the year-ago quarter. However, losses per share of 6 cents were wider than the Zacks Consensus Estimate of a loss of 2 cents.

Quarterly total revenue was $431.4 million, up 52.5% year over year and significantly above the Zacks Consensus Estimate of $391 million.

Quarterly total operating expenses stood at $348.4 million, down 4.8% year over year. This was mainly due to lower drilling rig operating expenses. Operating income in the reported quarter was $83 million compared with an operating loss of $83.2 million in the prior-year quarter. Adjusted EBITDA was $163.7 million as against $109.5 million in the prior-year quarter.

At the end of 2013, DryShips had $320 million of cash & cash equivalents and $5,568 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 2013, the debt-to-capitalization ratio was 0.59 compared with 0.52 at the end of 2012.

Drybulk Carrier Segment

The Drybulk Carrier segment generated $53 million in revenues, up 30.1% year over year. Time charter equivalent revenues were $45.4 million, up 29.9% from the year-ago quarter. Time charter equivalent TCE rate was $13,303, up 26.1% year over year. Total voyage days for fleet stood at 3,412, up 3% from the year-ago quarter. 

Oil Tanker Segment

The Tanker segment generated $32.9 million in revenues, up by a whopping 165.9% year over year. Time charter equivalent revenues came in at $11.9 million, up 84% from the prior-year quarter. Time charter equivalent TCE rate was $12,963, up 28.8% year over year. Total voyage days for fleet were 920, up 42.9% year over year. 

Offshore Drilling Segment

Quarterly revenues from Drilling contracts were approximately $345.5 million, up 50.4% year over year. At the end of 2013, this segment had an order backlog of $5.4 billion. 

Other Stocks to Consider

DryShips currently has a Zacks Rank #2 (Buy). Other better-ranked stocks in the shipping industry are Paragon Shipping Inc. (PRGN), Genco Shipping & Trading Ltd. (GNK) and DHT Holdings Inc. (DHT). All three stocks currently sport a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on DRYS
Read the Full Research Report on GNK
Read the Full Research Report on PRGN
Read the Full Research Report on DHT


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