DryShips Posts Loss in Q1, Misses Ests - Analyst Blog

DryShips Inc. DRYS declared lackluster first-quarter 2014 financial results. Quarterly GAAP net loss came in at $34.6 million or 8 cents per share compared with a loss of $116.6 million or 30 cents per share in the year-ago quarter. However, loss per share of 4 cents compared unfavorably with the Zacks Consensus Estimate of a profit of 2 cents. Quarterly total revenue was $457.5 million, up 43.1% year over year. However, the figure lagged the Zacks Consensus Estimate of $489 million.

Quarterly total operating expenses stood at $257.8 million, up 24.8% year over year. This was mainly due to higher drilling rig operating expenses. Operating income in the reported quarter stood at $90.8 million compared with an operating loss of $44.9 million in the prior-year quarter. Adjusted EBITDA was $201.2 million as against $112 million in the year-ago quarter.

At the end of the first quarter of 2014, DryShips had $887.6 million of cash & cash equivalents and $5,976.3 million of outstanding debt on its balance sheet compared with $739.3 million of cash and cash equivalents and $5,568 million of outstanding debt at the end of 2013. The debt-to-capitalization ratio stood at 0.60 compared with 0.59 at the end of 2013.

Drybulk Carrier Segment

The Drybulk Carrier segment generated $53.4 million in revenues, up 17.4% year over year. Time charter equivalent revenues totaled $45.3 million, up 22.8% from the year-ago quarter. Time charter equivalent TCE rate was $13,564, up 19% year over year. Total voyage days for fleet stood at 3,338, up 3% from the year-ago quarter.  

Oil Tanker Segment

The Tanker segment generated $43.3 million in revenues, up 55.8% year over year. Time charter equivalent revenues came in at $22.3 million, up by a whopping 106.5% from the prior-year quarter. Time charter equivalent TCE rate was $24,781, up 93.7% year over year. Total voyage days for fleet grossed 900, up 6.1% year over year.  

Offshore Drilling Segment

Quarterly revenues from Drilling contracts totaled approximately $360.8 million, up 46.4% year over year. At the end of the first quarter, this segment had an order backlog of $5 billion.  

Other Stocks to Consider

DryShips currently has a Zacks Rank #4 (Sell). Other better-ranked stocks in the shipping industry are Global Ship Lease, Inc. GSL, Kirby Corporation KEX and Nordic American Tankers Limited NAT. All three stocks currently sport a Zacks Rank #2 (Buy).
 

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