DryShips’ top line is rising with significant support for tankers

Market Realist

A must-read overview of DryShips' 2nd quarter 2014 earnings (Part 2 of 8)

(Continued from Part 1)

A rising top line

The main reason for DryShips’ improved top line is another quarter of high utilization for the company’s drilling rig segment and a positive contribution from its tanker segment.

The dry bulk segment

For the dry bulk carrier segment, net voyage revenues stood at $41.7 million for the three-month period ended June 30, 2014, compared to $42.4 million for the three-month period ended June 30, 2013.

Despite a 2.7% rise in voyage revenues to $49.6 million from the same quarter a year ago, net revenues dipped. The dip was mainly due to a 30.6% increase in voyage expenses to $7.9 million.

The average number of vessels increased to 38.7 from 36.6 in the corresponding quarter a year ago, while voyage days and calendar days increased 3.8% and 5.9%, respectively, for the second quarter of 2014.

Tanker segment

Positively, for the tanker segment, net voyage revenues amounted to $14.2 million for the three-month period ended June 30, 2014, compared to $9.1 million for the same period in 2013. This was mainly due to a significant increase in time charter equivalent, to $15,650 from $10,004 in the corresponding quarter a year ago.

However, the average number of vessels (ten), total voyage days, and total calendar days for vessels (910) remained at the same levels as the second quarter of 2013. The rise was partially affected by an increase in vessel operating expenses to $7,286 from $6,371 in the second quarter of 2013.

Offshore drilling segment

For the offshore drilling segment, revenues from drilling contracts increased by $181.6 million to $441.4 million for the three-month period ended June 30, 2014, compared to $259.8 million for the same period in 2013.

Key stocks and ETFs

The company is part of the Guggenheim Shipping ETF (SEA), which also tracks other shipping companies, like Navios Maritime Holdings Inc. (NM), Safe Bulkers (SB), Navios Maritime Partners (NMM), and Star Bulk Carriers Corp. (SBLK).

Continue to Part 3

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