November 4, 2013 / 9:31 PM / 4 years ago

DryShips loss wider than expected but revenue jumps

(Reuters) - Drybulk shipper and offshore contract driller DryShips Inc’s (DRYS.O) quarterly loss was wider than analysts’ estimates as interest and finance costs more than doubled, but the company reported an 18 percent rise in revenue.

Shares of the Greece-based company fell almost 6 percent in extended trading after the company reported results, but were later down about 1 percent.

DryShips’ revenue from offshore drilling contracts rose 15 percent to $328.5 million in the third quarter. Total revenue increased to $404.9 million.

“The drybulk market continues its recovery lately in the larger asset classes and as a result, asset prices across the board are rising,” Chief Executive George Economou said in a statement.

“We are cautiously optimistic, expecting a sustainable recovery in 2014.”

Oversupply of vessels, coupled with a weak demand, have suppressed the rates over the last five years for dry bulk ships, which carry commodities such as coal, ore and grains.

Time charter equivalent rate, or the average daily revenue of a vessel per voyage, in the DryShips’ drybulk business fell 15 pct to $10,796 in the quarter ended September 30 from $12,727 from a year earlier.

    Net loss increased to $63.88 million, or 17 cents per share, from $51.3 million, or 13 cents per share, a year earlier.

    Excluding items, the company reported a loss of 7 cents per share.

    Analysts on average had expected a loss of 5 cents per share On revenue of $352.7 million, according to Thomson Reuters I/B/E/S.

    Interest and finance cost, net of interest income, soared to $130.98 million from $51.92 million a year earlier.

    The company’s stock, considered to be a bellwether for the industry, closed at $3.23 on the Nasdaq on Monday.

    Reporting By Kanika Sikka and Sneha Banerjee in Bangalore

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