DryShips Inc. (DRYS) Shares Tumble on Back of 3Q:17 Results
DryShips (NASDAQ:DRYS) just announced its third-quarter earnings results that failed to live up to Wall Street’s expectations. The stock is down nearly 10% in after-hours trading Tuesday.
Cash on Hand: The company’s cash position is getting tight. As of November 20, 2017, the company had approximately $25.9 million in cash and cash equivalents versus $77.2 million on August 30, 2017.
Book Value of Vessels: At Q3 2017, the company’s book value of its vessels is approximately $786.5 million. The company strengthened its balance sheet through major dilution and reverse splits.
Debt: As of Q3 2017, the company had an outstanding debt of $185.5 million – $25 million lower than at the end of Q2.
Revenue: The company generated $29.9 million in total revenue in Q3 2017, versus $16.4 million in Q2:17.
Operating Margin: The revenue was $29.9 million versus $17.1 million in vessel operating expenses alone. When we include the other expenses, the company posted a net loss of $18 million.
DryShips engages in ocean transportation services for drybulk and petroleum cargoes. The company operates its business through three segments: Drybulk and Offshore support. The Drybulk segment provides drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries, which consists transportation and handling of Drybulk cargoes through ownership and trading of vessels. The Offshore Support segment consists of offshore support services to the global offshore energy industry through the operation of a diversified fleet of offshore support vessels.