DryShips Loss Widens, Shares Down 8% - Update

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3/6/2013 6:51 PM ET

Operators of dry bulk carriers DryShips Inc. (DRYS: Quote), Wednesday reported a wider loss for the fourth quarter as revenues declined. Loss for the quarter was wider than what analysts expected, while revenues also fell short of expectations. The company's shares were down about eight percent in extended trade on the Nasdaq.

Chief Executive George Economou said, "We continue to be bearish about the short-term performance of the shipping markets. Both tanker and drybulk spot charter rates continue to hover around historic lows. Unfortunately this comes at a time when most of our lucrative legacy charters expire."

In the Drybulk business, time charter equivalent rate, a measure of the average daily revenue performance of a vessel on a per voyage basis, plunged to $10,547 from $25,306 last year. Tanker business' time charter equivalent rate was $10,062, down from 10,077 last year.

DryShips' total revenues dropped to $282.9 million from $328.2 million last year. Eight analysts had consensus revenue estimate of $294.3 million for the quarter

Voyage revenues plunged to $53.1 million from $90.5 million last year, while revenues from drilling contracts decreased to $229.8 million from $237.7 million last year.

The Athens, Greece-based marine transporter and offshore driller's loss widened to $129.8 million or $0.34 per share from $6.2 million or $0.02 last year.

Excluding special items, DryShips' net loss for the quarter was $59.9 million or $0.15 per share. Analysts polled by Thomson Reuters expected a loss of $0.11 per share for the quarter. Analysts' estimates typically exclude special items.

The quarter's results included costs associated with the 10-year class survey for the Eirik Raude of $43.9 million and loss on the sale of the newbuilding tankers Esperona and Blanca of $41.3 million.

DRYS closed Wednesday's trading at $1.98, up $0.01 or 0.51%. The stock slipped $0.15 or 7.58% in after hours trade.

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by RTT Staff Writer

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