Back to top

Analyst Blog

DryShips Inc. (DRYS - Analyst Report) declared mixed financial results for the fourth quarter of 2013. Quarterly GAAP net loss was $24.4 million or 6 cents per share compared with a loss of $129.9 million or 34 cents per share in the year-ago quarter. However, losses per share of 6 cents were wider than the Zacks Consensus Estimate of a loss of 2 cents.

Quarterly total revenue was $431.4 million, up 52.5% year over year and significantly above the Zacks Consensus Estimate of $391 million.

Quarterly total operating expenses stood at $348.4 million, down 4.8% year over year. This was mainly due to lower drilling rig operating expenses. Operating income in the reported quarter was $83 million compared with an operating loss of $83.2 million in the prior-year quarter. Adjusted EBITDA was $163.7 million as against $109.5 million in the prior-year quarter.

At the end of 2013, DryShips had $320 million of cash & cash equivalents and $5,568 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 2013, the debt-to-capitalization ratio was 0.59 compared with 0.52 at the end of 2012.

Drybulk Carrier Segment

The Drybulk Carrier segment generated $53 million in revenues, up 30.1% year over year. Time charter equivalent revenues were $45.4 million, up 29.9% from the year-ago quarter. Time charter equivalent TCE rate was $13,303, up 26.1% year over year. Total voyage days for fleet stood at 3,412, up 3% from the year-ago quarter. 

Oil Tanker Segment

The Tanker segment generated $32.9 million in revenues, up by a whopping 165.9% year over year. Time charter equivalent revenues came in at $11.9 million, up 84% from the prior-year quarter. Time charter equivalent TCE rate was $12,963, up 28.8% year over year. Total voyage days for fleet were 920, up 42.9% year over year. 

Offshore Drilling Segment

Quarterly revenues from Drilling contracts were approximately $345.5 million, up 50.4% year over year. At the end of 2013, this segment had an order backlog of $5.4 billion. 

Other Stocks to Consider

DryShips currently has a Zacks Rank #2 (Buy). Other better-ranked stocks in the shipping industry are Paragon Shipping Inc. (PRGN - Snapshot Report), Genco Shipping & Trading Ltd. and DHT Holdings Inc. (DHT - Snapshot Report). All three stocks currently sport a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%