DryShips Inc. (DRYS), which operates dry bulk carriers, said Tuesday it slipped to a loss for the first quarter as increased drilling, interest and other expenses offset growth in revenues, which came in below Street estimates.
Moving forward, the Greece-based marine transporter and offshore driller said prospects for the ultra deepwater drilling industry is positive, but noted that charter rates in shipping business continue to be low.
Shares of the company are currently down 1.7 percent in extended session on the Nasdaq.
DryShips reported first quarter net loss of $47.5 million or $0.12 per share, compared to net income of $25.8 million or $0.07 per share last year.
On average, 10 analysts polled by Thomson Reuters expected a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
The company said results were impacted by downtime and mobilization related to the commencement of new contracts of its subsidiary, Ocean Rig.
Total revenues for the quarter rose to $247.5 million from $207.4 million last year, on growth in drilling contract business.
Analysts estimated revenues of $267.76 million.
During the quarter, total vessels/drilling rigs operating expenses and depreciation/amortization increased to $107 million and $82 million, respectively, from $63 million and $56 million, respectively, last year.
Interest and finance costs, amounted to $52.2 million for the quarter, up from $15.6 million a year ago.
DRYS closed Tuesday on the Nasdaq at $2.29 on a volume of 4 million shares. In after hours, the stock dropped 1.7%.
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