DryShips (DRYS) Outperforms

DryShips Inc. (DRYS), a global provider of marine transportation services, declared better-than-expected financial results for the second quarter 2010. Both Drybulk and Drilling segments improved their respective top-line and operating margin.

Quarterly net income was $8.7 million or 2 cents per share compared with a net income of $51.5 million or 24 cents per share in the prior-year quarter. However, in the reported quarter, DryShip incurred $71.7 million of one-time special charges. Excluding these items, second-quarter 2010 adjusted EPS was 30 cents per share, far ahead of the Zacks Consensus Estimate of 23 cents.

Quarterly total revenue was a little over $224.2 million, up 8.1% year over year and ahead of the Zacks Consensus Estimate of $216 million. Quarterly Voyage revenue was $115.3 million, up 7.9% year over year. Quarterly Time charter equivalent revenue (Voyage revenue less Voyage expense) was $108.8 million, up 8.9% year over year. Revenue from Drilling contracts was nearly $109 million, up 8.3% year over year.

Quarterly total operating expenses were $118.8 million, down 31.6% year over year. Voyage expense was $6.5 million, down 6.5% year over year. Vessel expense was $16.3 million, down 8.6% year over year. Drilling Rigs expense was $30.4 million, down 9.4% year over year. Quarterly SG&A expense was $16.8 million, down 23.3% year over year.

In the second-quarter 2010, adjusted EBITDA (which excludes gain/loss from interest rate swaps) was $152.3 million, a considerable improvement over the prior-year adjusted EBITDA of $74.2 million.

Operating Metrics

In the second quarter of 2010, average number of vessels of DryShip was 37 compared with 37.3 in the prior-year quarter. Quarterly total voyage days for vessels were 3,330 compared with 3,358 in the year-ago quarter. Total calendar days fro vessels were 3,367 compared with 3,394 in the year-ago quarter. Quarterly Fleet utilization was 98.9% compared with 99% in the year-ago quarter. Time charter equivalent TCE was $32.659 million compared with $29.752 million in the prior-year quarter. Vessel operating expense (daily) was $4,849 compared with $5,266 in the prior-year quarter.

DRYSHIPS INC (DRYS): Free Stock Analysis Report

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