Linked above is the press release for the quarterly earning of DryShips Inc. DRYS. DryShips is probably the most followed and visible of the stocks in the dry bulk shipping sector.
For the quarter DRYS posted a loss of 93ยข per share vs. a gain of $4.58 a year earlier. Pushing the quarter into the red was $166.2 million or $1.53 per share in contract termination fees and deposit forefeitures.
Some interesting notes from the press release. DRYS divides their business into two sectors: Drybulk shipping and Offshore drilling. Here is how the two segments faired for the first quarter:
Revenues for drybulk shipping declined by 59% from the $217.9 million in the first quarter of 2008 to $88.9 million for Q1, 2009.
Revenues for offshore drilling were: $0.00.
At the same time interested expense increased 92% over a year earlier to $29 million for the quarter.
It seems to me that this company needs to start getting things turned around pretty darn quick. They have signed a big money contract with Petrobras for a drilling rig. They have raised a lot of cash (diluting shareholders) and cancelled newbuild contracts.
In the press release, management discussed their ability to pick up distressed properties (ships) and benefit from the upcoming economic revival. Too much growth, too fast is what got them into trouble in the first place. I see this as a company that needs to survive the current low charter rate environment and make sure they can cover their overhead. I think their are better choices in the shipping space at the current time.
Dryships reports large loss for the quarter
drys043009.pdf (application/pdf Object).
Linked above is the press release for the quarterly earning of DryShips Inc. DRYS. DryShips is probably the most followed and visible of the stocks in the dry bulk shipping sector.
For the quarter DRYS posted a loss of 93ยข per share vs. a gain of $4.58 a year earlier. Pushing the quarter into the red was $166.2 million or $1.53 per share in contract termination fees and deposit forefeitures.
Some interesting notes from the press release. DRYS divides their business into two sectors: Drybulk shipping and Offshore drilling. Here is how the two segments faired for the first quarter:
It seems to me that this company needs to start getting things turned around pretty darn quick. They have signed a big money contract with Petrobras for a drilling rig. They have raised a lot of cash (diluting shareholders) and cancelled newbuild contracts.
In the press release, management discussed their ability to pick up distressed properties (ships) and benefit from the upcoming economic revival. Too much growth, too fast is what got them into trouble in the first place. I see this as a company that needs to survive the current low charter rate environment and make sure they can cover their overhead. I think their are better choices in the shipping space at the current time.