I will put my thoughts up early today about the Q3 earnings report from Dry Ships DRYS. The poster child for over exuberance in the shipping market, circa 2006 and 2007, does not show much besides staying slightly profitable.
Here are some of the figures that caught my eye:
Net income (without the interest rate swaps that continue to hammer earnings in this low rate environment) DRYS earned $74.9 million in the quarter compared to 180 million a year earlier.
TCE on the dry bulk vessels averaged $33k per day compared to $64k in 2008.
What makes these numbers even worse is that the vessel list still shows quite a few running on contracts at way above current market rates. The TCE will continue to fall. Even more exciting for share holder, the total number of shares outstanding has increased from 42.7 million to almost 254 million! Way to go management. Earnings fall by ove3r 50% and the share base is diluted by a factor of 5. I do not understand why the share price has only fallen by a third so far this year.
It appears there are still some uninformed shareholders/buyers who think this company can recover to its former glory and hype. I think this company still is in trouble and all of the dilution and debt restructuring may not save it from eventual bankruptcy.
Dry Ships struggles with earnings
dryspr102609.pdf application/pdf Object.
I will put my thoughts up early today about the Q3 earnings report from Dry Ships DRYS. The poster child for over exuberance in the shipping market, circa 2006 and 2007, does not show much besides staying slightly profitable.
Here are some of the figures that caught my eye:
What makes these numbers even worse is that the vessel list still shows quite a few running on contracts at way above current market rates. The TCE will continue to fall. Even more exciting for share holder, the total number of shares outstanding has increased from 42.7 million to almost 254 million! Way to go management. Earnings fall by ove3r 50% and the share base is diluted by a factor of 5. I do not understand why the share price has only fallen by a third so far this year.
It appears there are still some uninformed shareholders/buyers who think this company can recover to its former glory and hype. I think this company still is in trouble and all of the dilution and debt restructuring may not save it from eventual bankruptcy.