DryShips profitable for second consecutive quarter

George-Economou

DryShips, a diversified owner and operator of ocean going cargo vessels, announced its unaudited financial and operating results for the quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights

  • For the second quarter of 2018, the Company reported net income of $3.6 million, or $0.04 basic and diluted earnings per share.

Included in the second quarter of 2018 results are the following:

  • Vessel dry-docking costs of $3.3 million, or $0.03 per share.
  • Gain of $5.1 million, or $0.05 per share, on the sale of the Company’s 2001 built Panamax vessel, the Maganari, to an unaffiliated buyer.

Excluding the above, the Company’s net results would have amounted to a net income of $1.8 million, or $0.02 per share.

  • The Company reported Adjusted EBITDA of $13.3 million for the second quarter of 2018. (1)

(1) Adjusted EBITDA is a non-U.S. GAAP measure; please see later in this press release for reconciliation to net income/ (loss).

Updated Key Information as of July 30, 2018

  • Cash and cash equivalents: approximately $155.4 million (or $1.57 per share)
  • Book value of vessels: approximately $893.2 million (or $9.05 per share)
  • Debt outstanding balance: approximately $434.1 million (or $4.40 per share)
  • Number of Shares Outstanding:  98,708,716

Recent Developments

  • $50.0 million Common Stock Repurchase Program

As of July 31, 2018, the Company has repurchased a total of 5,565,992 shares of its common stock for an aggregate amount of $23.1 million, including commissions, pursuant to its previously announced stock repurchase program under which the Company may repurchase up to $50.0 million of its outstanding common stock until February 28, 2019. The current number of the Company’s outstanding common stock is 98,708,716.

  • Suspension of Cash Dividend

While announcing the results of its common stock repurchase program under which the Company has repurchased a total of 5,565,992 shares, the Company’s Board of Directors has decided to suspend the Company’s previously announced cash dividend policy until further notice. As previously noted, both the dividend policy and common stock repurchase program are subject to the discretion of the Company’s Board of Directors and may be suspended or amended at any time without notice.

  • Vessel Deliveries

On July 18 and July 24, 2018, the Company’s Panamax vessels Redondo and Marbella, respectively, were delivered to their new owners according to the terms of the previously announced Memoranda of Agreement with unaffiliated buyers.

Fleet List

The table below describes the Company’s fleet as of July 30, 2018:

Year Gross rate Redelivery
Built DWT Per day Earliest Latest
Drybulk fleet
Panamax:
Bargara(1) 2002 74,832 Spot N/A N/A
Capitola 2001 74,816 Spot N/A N/A
Catalina 2005 74,432 Spot N/A N/A
Levanto 2001 73,925 Spot N/A N/A
Ligari 2004 75,583 Spot N/A N/A
Majorca 2005 74,477 Spot N/A N/A
Mendocino(1) 2002 76,623 Spot N/A N/A
Rapallo 2009 75,123 Spot N/A N/A
Raraka 2012 76,037 Spot N/A N/A
Newcastlemax:
Bacon 2013 205,170 T/C Index Linked Aug-18 Jan-19
Huahine 2013 206,037 $ 24,500 Feb-19 Apr-19
Judd 2015 205,796 $ 20,700 Jan-19 Apr-19
Marini 2014 205,854 T/C Index Linked Dec-18 Feb-19
Morandi 2013 205,854 T/C Index Linked Feb-19 May-19
Kamsarmax:
Castellani 2014 82,129 Spot N/A N/A
Kelly 2017 81,300 Spot N/A N/A
Matisse 2014 81,128 Spot N/A N/A
Nasaka 2014 81,918 Spot N/A N/A
Valadon 2014 81,198 Spot N/A N/A
Tanker fleet
Very Large Crude Carrier:
Shiraga 2011 320,105 Spot N/A N/A
Suezmax:
Marfa 2017 159,513 Spot N/A N/A
Samsara 2017 159,855 $18,000 Base rate plus profit share Mar.-22 May-25
Aframax:
Balla 2017 113,293 Spot N/A N/A
Stamos 2012 115,666 Spot N/A N/A
Gas Carrier fleet
Very Large Gas Carriers:
Anderida(2) 2017 51,850 $ 29,997 Jun.-22 Jun.-25
Aisling(2) 2017 51,850 $ 29,997 Sep.-22 Sep.-25
Mont Fort(2) 2017 51,850 $ 28,833 Nov.-27 Nov.-27
Mont Gelé(2) 2018 51,850 $ 28,833 Jan.-28 Jan.-28
Offshore Supply fleet
Platform Supply Vessels:
Crescendo 2012 1,457 Laid up N/A N/A
Colorado 2012 1,430 Laid up N/A N/A
Oil Spill Recovery Vessels:
Indigo 2013 1,401 Laid up N/A N/A
Jacaranda 2012 1,360 Laid up N/A N/A
Emblem 2012 1,363 Laid up N/A N/A
Jubilee 2012 1,317 Laid up N/A N/A

(1) Sold and expected to be delivered to new owners in 2018.

(2) Sold and expected to be delivered to new owners in 2018, subject to charterers’ approval.

Drybulk, Tanker and Gas Carrier Segments Summary Operating Data (unaudited)

(U.S. Dollars in thousands, except average daily results)

Drybulk Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Average number of vessels(1) 15.5 20.9 14.3 21.0
Total voyage days for vessels(2) 1,410 1,850 2,580 3,740
Total calendar days for vessels(3) 1,410 1,903 2,580 3,793
Fleet utilization(4) 100.0 % 97.2 % 100.0 % 98.6 %
Time charter equivalent(5) $ 6,985 $ 11,431 $ 6,365 $ 11,225
Vessel operating expenses (daily)(6) $ 6,320 $ 7,543 $ 5,787 $ 6,841

 

Tanker Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Average number of vessels(1) 1.9 4.3 1.0 4.1
Total voyage days for vessels(2) 175 387 175 747
Total calendar days for vessels(3) 175 387 175 747
Fleet utilization(4) 100.0 % 100.0 % 100.0 % 100.0 %
Time charter equivalent(5) $ 10,057 $ 15,080 $ 10,057 $ 17,444
Vessel operating expenses (daily)(6) $ 17,720 $ 7,674 $ 17,848 $ 7,764

 

Gas Carrier Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Average number of vessels(1) 0.0 4.0 0.0 3.9
Total voyage days for vessels(2) 3 364 3 714
Total calendar days for vessels(3) 3 364 3 714
Fleet utilization(4) 100.0 % 100.0 % 100.0 % 100.0 %
Time charter equivalent(5) $ 14,667 $ 27,929 $ 14,667 $ 28,083
Vessel operating expenses (daily)(6) $ 272,899 $ 8,536 $ 272,899 $ 9,125

(1) Average number of vessels is the number of vessels that constituted the Company’s fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of the Company’s fleet during the period divided by the number of calendar days in that period.

(2) Total voyage days for fleet are the total days the vessels were in the Company’s possession for the relevant period net of dry-docking and laid-up days.

(3) Calendar days are the total number of days the vessels were in the Company’s possession for the relevant period including dry-docking days and laid-up days.

(4) Fleet utilization is the percentage of time that the Company’s vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. The Company’s method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from the Company’s vessels, the most directly comparable U.S. GAAP measure, because it assists the Company’s management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Please see below for a reconciliation of TCE rates to voyage revenues.

(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days net of laid-up days for the relevant time period.

Drybulk, Tanker and Gas Carrier Segments Summary Operating Data (unaudited) – continued

(In thousands of U.S. dollars, except for TCE rate, which is expressed in U.S. Dollars, and voyage days)

Drybulk Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Voyage revenues $ 12,225 $ 22,748 $ 20,713 $ 45,281
Voyage expenses (2,376 ) (1,601 ) (4,292 ) (3,299 )
Time charter equivalent revenues $ 9,849 $ 21,147 $ 16,421 $ 41,982
Total voyage days for fleet 1,410 1,850 2,580 3,740
Time charter equivalent (TCE) $ 6,985 $ 11,431 $ 6,365 $ 11,225

 

Tanker Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Voyage revenues $ 3,606 $ 9,918 $ 3,606 $ 21,147
Voyage expenses (1,846 ) (4,082 ) (1,846 ) (8,116 )
Time charter equivalent revenues $ 1,760 $ 5,836 $ 1,760 $ 13,031
Total voyage days for fleet 175 387 175 747
Time charter equivalent (TCE) $ 10,057 $ 15,080 $ 10,057 $ 17,444

 

Gas Carrier Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
Voyage revenues $ 50 $ 10,590 $ 50 $ 20,883
Voyage expenses (6 ) (424 ) (6 ) (832 )
Time charter equivalent revenues $ 44 $ 10,166 $ 44 $ 20,051
Total voyage days for fleet 3 364 3 714
Time charter equivalent (TCE) $ 14,667 $ 27,929 $ 14,667 $ 28,083

DryShips Inc.

Financial Statements

Unaudited Condensed Consolidated Statements of Operations

(Expressed in Thousands of U.S. Dollars

except for share and per share data)

Three Months Ended June 30, Six Months Ended June 30,
2017 2018 2017 2018
REVENUES:
Voyage revenues $ 16,381 $ 43,256 $ 28,189 $ 87,311
16,381 43,256 28,189 87,311
EXPENSES:
Voyage expenses 4,395 6,107 6,629 12,247
Vessel operating expenses 15,532 20,560 23,686 38,660
Depreciation 2,290 7,156 3,102 13,974
Impairment loss,(gain)/loss from sale of vessel and other 300 (5,109 ) 300 (5,109 )
General and administrative expenses 7,082 7,612 15,795 14,781
Other, net (347 ) (12 ) (365 )
Operating income/(loss) (13,218 ) 7,277 (21,311 ) 13,123
OTHER INCOME / (EXPENSES):
Interest and finance costs, net of interest income (2,270 ) (3,915 ) (4,709 ) (8,805 )
Other, net (156 ) 214 (331 ) 31
Total other expenses, net (2,426 ) (3,701 ) (5,040 ) (8,774 )
Net income/(loss) (15,644 ) 3,576 (26,351 ) 4,349
Net income/(loss) attributable to DryShips Inc. $ (15,644 ) $ 3,576 $ (26,351 ) $ 4,349
Net income/(loss) attributable to DryShips Inc. common stockholders (15,644 ) 3,576 (26,351 ) 4,349
Earnings/(Losses) per common share, basic and diluted (1) $ (37.12 ) $ 0.04 $ (108.25 ) $ 0.04
Weighted average number of shares, basic and diluted (1) 421,418 100,581,638 243,433 102,123,365

(1) Share and per share data for 2017 give effect to the 1-for-7 reverse stock split on July 21, 2017.

 

DryShips Inc.

Unaudited Condensed Consolidated Balance Sheets

(Expressed in Thousands of U.S. Dollars) December 31, 2017 June 30, 2018
ASSETS
Cash, cash equivalents, including restricted cash (current and non-current) $ 30,226 $ 140,241
Other current and non-current assets 123,713 97,722
Advances for vessels under construction 31,898
Vessels, net 749,088 887,094
Total assets 934,925 1,125,057
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total debt 216,969 433,335
Total other liabilities 10,920 7,953
Total stockholders’ equity 707,036 683,769
Total liabilities and stockholders’ equity $ 934,925 $ 1,125,057
SHARE COUNT DATA
Common stock issued 104,274,708 104,274,708
Less: Treasury stock (5,565,792 )
Common stock issued and outstanding 104,274,708 98,708,916

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, and certain other non-cash items as described below. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, and the Company’s calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by the Company’s lenders as a credit metric and the Company believes that it presents useful information to investors regarding a company’s ability to service and/or incur indebtedness.

The following table reconciles net income / (loss) to Adjusted EBITDA:

(U.S. Dollars in thousands) Three Months Ended June 30, 2017 Three Months Ended June 30, 2018 Six Months Ended June 30, 2017 Six Months Ended June 30, 2018
Net income/(loss) attributable to Dryships Inc $ (15,644 ) $ 3,576 $ (26,351 ) $ 4,349
Add: Net interest expense 2,270 3,915 4,709 8,805
Add: Depreciation 2,290 7,156 3,102 13,974
Add: Dry-dockings and class survey costs 3,310 3,699
Add: Impairment loss, (gain)/loss from sale of vessel and other 300 (5,109 ) 300 (5,109 )
Add: Write-off of capitalized expenses 470 470
Add: Income taxes 11 2 20 2
Adjusted EBITDA $ (10,773 ) $ 13,320 $ (18,220 ) $ 26,190

 

LEAVE A COMMENT

×

Comments are closed.