DryShips Inc. DRYS recently reported disappointing second-quarter 2015 financial numbers with both earnings and revenues lagging the Zacks Consensus Estimate.
Quarterly GAAP net loss was $5.7 million or 1 cent per share compared with a loss of $1,440.5 million or $2.17 in the year-ago quarter. However, adjusted earnings per share of 6 cents fell short of the Zacks Consensus Estimate by a penny. Meanwhile, quarterly total revenue stood at $403.2 million, down 23.6% year over year and also missed the Zacks Consensus Estimate of $530 million by a wide margin.
Operating income in the reported quarter was $14.1 million, down 89.2% year over year mainly affected by Vessel impairment charges and higher drilling rig operating costs. Adjusted EBITDA stood at $243.4 million, down 2.2% from the prior-year quarter.
At the end of the second quarter of 2015, DryShips had $40.7 million of cash & cash equivalents and $1,001.8 million of outstanding debt on its balance sheet compared with $658.9 million and $5,517.6 million, respectively, at the end of 2014. Meanwhile, the debt-to-capitalization ratio stood at 0.41 compared with 0.44 at the end of 2014.
Drybulk Carrier Segment
The Drybulk Carrier segment generated $42.2 million in revenues, down 14.9% year over year. Time charter equivalent (TCE) revenues totaled $37.4 million, down 10.3% from the year-ago quarter. TCE rate was pegged at $10,813, highlighting a decline of 10.4% year over year. Total voyage days for fleet were 3,458, up 0.1% from the year-ago quarter.
Oil Tanker Segment
The Tanker segment generated $54.8 million in revenues, up 49.7% year over year. TCE revenues came in at $39.2 million, up a strong 176% from the prior-year quarter. TCE rate stood at $43,221, up 176.2% year over year. Total voyage days for fleet were 906, down 0.4% year over year.
Offshore Drilling Segment
Quarterly revenues from Drilling contracts were approximately $323.7 million, down 26.7% year over year. At the end of the reported quarter, this segment had an order backlog of $4.3 billion.
Stocks to Consider
DryShips currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the shipping industry are Dorian LPG Ltd. LPG, Nordic American Tankers Limited NAT and Ardmore Shipping Corporation ASC. All three stocks currently sport a Zacks Rank #1 (Strong Buy).
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