DryShips’ Segmental Revenue Gets a Major Contribution from Tankers
Can DryShips' Crude Tanker Segment Support the Company's Recovery? (Part 2 of 10)
Revenue growth: Dry bulk and offshore drilling
For its dry bulk carrier segment, DryShips (DRYS) reported net voyage revenues (voyage revenues minus voyage expenses) of $46.1 million for the three-month period ended December 31, 2014, compared to $45.4 million for the three-month period ended December 31, 2013. The time charter equivalent (or TCE) rate for the dry bulk fleet was $12,974 per day per vessel in the three-month period ended December 31, 2014, compared to $13,303 per day per vessel in the corresponding period in 2013.
For the company’s offshore drilling segment, revenues from drilling contracts increased by $153.9 million to $499.4 million for the three-month period ended December 31, 2014, compared to $345.5 million for the same period in 2013.
The tanker segment is driving growth
For the tanker segment, net voyage revenues amounted to $23.9 million for the three-month period ended December 31, 2014, compared to $11.9 million for the same period in 2013. The TCE rate for the tanker fleet stood at $26,003 per day per vessel in the three-month period ended December 31, 2014. This improvement is significant compared to the $12,963-per-day-per-vessel TCE rate in the corresponding period of 2013. The PowerShares DB Oil Fund ETF (DBO) tracks the performance of crude oil.
Looking ahead to 2016, Dryships foresees that the strong tanker market should extend well. Other companies are also seeing a similar outlook for the tanker market. DHT Holdings (DHT) saw its fourth quarter revenue increase by 135.9%, mainly due to an increase in its fleet as well as a stronger tanker market. Meanwhile, Diana Shipping (DSX) and Navios Maritime Partners (NMM) recorded revenue growth of 16.9% and 13.9%, respectively.
The Belgium-based Euronav NV (EURN) noted that there’s been a robust and sustained recovery in freight rates in both the VLCC and Suezmax sectors during the fourth quarter of 2014. This recovery has continued and expanded into the first quarter of 2015.
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