) declared disappointing financial results for the fourth quarter
of 2012. Solid performance by the company's majority-owned
deepwater oil drilling unit
Rig UDW Inc.
) was more than offset by the tepid results of DryShips' legacy
drybulk shipping cargo division and newly formed oil tanker
division. Ocean Rig, in which DryShips controls 65% stake,
currently has an order backlog of approximately $5.1 billion over
the next three years.
As a result of the weak financial performance in the fourth
quarter, the stock price of DryShips was down $0.18 (9.1%) to
$1.80 in the aftermarket trade on Nasdaq. DryShips currently has
a Zacks Rank #3 (Hold).
Quarterly GAAP net loss was $129.9 million or a loss of 34
cents per share compared with $6.2 million or 2 cents per share
in the prior-year quarter. However, adjusted (excluding one-time
charges) loss per share in the fourth quarter of 2012 was 15
cents, wider than the Zacks Consensus Estimate of a loss of 11
cents per share. Quarterly total revenue of $282.9 million missed
the Zacks Consensus Estimate of $299 million and fell 13.8% year
Quarterly total operating expenses were $366 million, up 35.1%
year over year. This was mainly due to higher operating expenses
for drilling rigs, higher voyage expenses, higher depreciation
and amortization charges, and higher vessel impairment charges.
Operating loss in the reported quarter was $83.2 million compared
with an operating income of $57.3 million in the prior-year
quarter. In the fourth quarter of 2012, adjusted EBITDA was
$109.5 million compared with $169 million in the prior-year
At the end of 2012, DryShips had $315.7 million of cash &
cash equivalents and $4,241.8 million of outstanding debt on its
balance sheet compared with $251.1 million of cash and cash
equivalents and $4,241.8 million of outstanding debt at the end
of 2011. At the end of 2012, debt-to-capitalization ratio was
0.52 compared with 0.49 at the end of 2011.
Drybulk Carrier Segment
The Drybulk carrier segment generated $40.8 million in
revenue, down 53% year over year. Time charter equivalent revenue
was $34.9 million, down 57.2% year over year. Time charter
equivalent TCE was $10,547, down 58.3% year over year. Total
voyage days per fleet were 3,312, up 2.7% year over year.
Oil Tanker Segment
The Tanker segment generated $12.4 million in revenue, up
216.7% year over year. Time charter equivalent revenue was $6.5
million, up 77.6% year over year. Time charter equivalent TCE was
$10,062, down 0.2% year over year. Total voyage days per fleet
were 644, up 77.9% year over year.
Offshore Drilling Segment
Quarterly revenue from Drilling contracts was approximately
$229.8 million, down 3.5% year over year.
Other Stocks to Consider
Other stocks to consider in the shipping industry are
Tsakos Energy Navigation Ltd.
). Both the companies handily beat the Zacks Consensus Estimates
in the most recent quarter. These stocks currently have a Zacks
Rank #2 (Buy).
DRYSHIPS INC (DRYS): Free Stock Analysis
KIRBY CORP (KEX): Free Stock Analysis Report
OCEAN RIG UDW (ORIG): Free Stock Analysis
TSAKOS EGY NAVG (TNP): Free Stock Analysis
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