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DryShips loss wider than expected but revenue jumps
Drybulk shipper and offshore contract driller DryShips Inc’s 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.
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. (Reuters)
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