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DryShips’ Fourth Quarter Earnings and Fleet: Investor Snapshot

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Company and 4Q snapshot

DryShips (DRYS), an owner of dry bulk carriers and tankers that operate worldwide, reported its fourth quarter 2014 earnings on February 26, 2015. Between then and now, the company’s stock price has fallen 27.6%. Meanwhile, peers Safe Bulkers(SB), Navios Maritime Holdings (NM), Diana Shipping (DSX), and Navios Maritime Partners (NMM) recorded 7.6%, 2.7%, 7.3%, and 13.6% declines, respectively, in the same period.

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George Economou, chairman and chief executive officer of DryShips, commented, “We are pleased to announce another quarter of positive operating results returning the company to full-year profitability excluding non-cash items.” DryShips’ fourth quarter 2014 earnings were affected by a lull in the dry bulk segment’s performance, while the offshore and tanker segments were in the positive. The PowerShares DB Oil Fund ETF (DBO) tracks the performance of crude oil.

Fleet and ownership

DryShips operates in three distinct segments: dry bulk, tankers, and deepwater drilling. DryShips owns a fleet of 39 dry bulk carriers, comprising 13 Capesize, 24 Panamax, and two Supramax vessels with a combined deadweight tonnage of approximately 4.3 million tons. It also has ten tankers, comprising four Suezmax and six Aframax vessels, with a combined deadweight tonnage of over 1.3 million tons.

Through its majority-owned (59.3%) subsidiary Ocean Rig UDW (ORIG), DryShips owns and operates 13 offshore ultra deepwater drilling units, comprising two ultra-deepwater semisubmersible drilling rigs and 11 ultra-deepwater drillships. Out of these units, one is scheduled for delivery to Ocean Rig in 2015, one in 2016, and two in 2017.

In this series, we’ll discuss DryShips’ fourth-quarter earnings in detail and the company’s 2015 outlook. We’ll also analyze the company’s strategy going forward to earn higher earnings and profits.

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