DryShips Shares Gain As Q2 Loss Narrows On Strong Revenue Growth

(RTTNews) - Greece-based bulk shipping company DryShips Inc (DRYS) Tuesday reported a loss for the second quarter that narrowed from last year on strong revenue growth. Revenues for the quarter beat analysts' estimates. The ocean transportation service provider's shares gained 7 percent in extended trades.

George Economou, Chairman and Chief Executive Officer of Dryships said, "Our liquidity position has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which are performing above expectations for this time of the year. The drybulk carrier segment had a weak second quarter of 2014, but we believe that the pace of newbuilding deliveries is tapering off and when combined with continuing robust demand, will lead to a sustainable recovery in charter rates."

Net loss attributable to DryShips for the second quarter was $5.63 million or $0.01 per share, narrower than loss of $18.21 million or $0.05 per share in the same period last year. On average, analysts polled by Thomson Reuters expected the company to report loss of $0.06 per share. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 57 percent to $527.67 million from $336.01 million in the prior-year period. Analysts had a consensus revenue estimate of $491.55 million for the quarter.

In the drybulk carrier segment, net voyage revenues edged down 2 percent from last year to $41.7 million. Meanwhile, net voyage revenues for the tanker segment surged 56 percent to $14.2 million. In the offshore drilling segment, revenues from drilling contracts increased 70 percent to $441.43 million.

On July 21, 2014, Ocean Rig said its board of directors declared a quarterly cash dividend with respect to the quarter ended June 30, 2014 of $0.19 per common share, to shareholders of record as of August 1, 2014 and payable on or about August 11, 2014.

DRYS closed Tuesday's regular trading session at $2.70, down $0.01 or 0.37 percent on a volume of 3.53 million shares. However, in after-hours, the stock gained $0.19 or 7.04 percent to $2.89.