) declared its financial results for the first quarter of 2013.
Solid performance by the company's majority owned deepwater oil
Ocean Rig UDW Inc.
) was the primary factor for the top-line growth. Ocean Rig, in
which DryShips controls a 59% stake, currently has an order
backlog of approximately $4.9 billion over the next three years.
Quarterly GAAP net loss was $116.6 million or a loss of 30
cents per share compared with $47.5 million or 12 cents per share
in the prior-year quarter. However, adjusted (excluding one-time
charges) loss per share in the first quarter of 2013 was 10
cents, exactly in line with the Zacks Consensus Estimate.
Quarterly total revenue of $319.7 million surpassed the Zacks
Consensus Estimate of $312 million and improved 29.2% year over
Despite these positives, the stock price of DryShips was down
8 cents (3.8%) to $2.01 in the aftermarket trade on NASDAQ. This
was primarily due to disappointing future outlook given by
management. DryShips declared that it does not foresee any
improvement in the time charter rate for the rest of 2013. This
was attributed to the sluggish growth in China, the largest
importer of coal and steel in the world.
Quarterly total operating expenses were $364.6 million, up
55.1% year over year. This was mainly due to higher operating
expenses for drilling rigs, higher voyage expenses and higher
vessel impairment charges. Operating loss in the reported quarter
was $44.9 million compared with an operating income of $12.5
million in the prior-year quarter. In the first quarter of 2013,
adjusted EBITDA was $112 million compared with $104.1 million in
the prior-year quarter.
At the end of the first quarter of 2013, DryShips had $315.7
million of cash & cash equivalents and $4,424.2 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 the reported
quarter, the debt-to-capitalization ratio was 0.53 compared with
0.52 at the end of 2012.
Drybulk Carrier Segment
The Drybulk carrier segment generated $45.5 million in
revenues, down 41% year over year. Time charter equivalent
revenues were $36.9 million, down 49% year over year. Time
charter equivalent TCE rate was $11,396, down 48.3% year over
year. The total voyage days per fleet were 3,240, down 1.3% year
Oil Tanker Segment
The Tanker segment generated $27.8 million in revenues, up
271.7% year over year. Time charter equivalent revenues were
$10.9 million, up 50.5% year over year. Time charter equivalent
TCE rate was $12,792, down 19.6% year over year. The total voyage
days per fleet were 848, up 87.2% year over year.
Offshore Drilling Segment
DryShips Quarterly revenues from Drilling contracts were
approximately $246.4 million, up 51.2% year over year.
Other Stocks to Consider
DryShips currently has a Zacks Rank #3 (Hold). Other stocks to
consider in the shipping industry are
Eagle Bulk Shipping Inc.
Paragon Shipping Inc.
). Both these stocks currently have a Zacks Rank #1 (Strong
DRYSHIPS INC (DRYS): Free Stock Analysis
EAGLE BULK SHPG (EGLE): Free Stock Analysis
OCEAN RIG UDW (ORIG): Free Stock Analysis
PARAGON SHIPPNG (PRGN): Free Stock Analysis
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