The Athens, Greece-based DryShips Inc. (DRYS) has reported a loss of $59.2 million in its first quarter. DryShips is an owner of dry bulk carriers and tankers that operate worldwide.
The company said it had a loss of 9 cents on a per-share basis. Earnings, adjusted for non-recurring costs, were less than 1 cent on a per-share basis.
The operator of oil rigs and dry cargo carriers posted revenue of $492.1 million in the period. The Company reported Adjusted EBITDA of $242.1 million for the first quarter of 2015, as compared to $200.6 million for the first quarter of 2014.
George Economou, Chairman and Chief Executive Officer of the Company, commented: "We are pleased to announce another quarter of robust operating results. Despite the grueling dry bulk market which is at historical lows, our results were boosted by an exceptional quarter of our drilling segment and strong TCE performance of our tankers, averaging over $35,000 per day."
According to Zacks, the dry bulk shipping industry is cyclical in nature with high volatility in charter hire rates and profit margins. Also, future demand and supply of dry bulk commodities are very difficult to predict.
Several economic and geopolitical events can significantly affect demand, supply, price and transportation of dry bulk commodities within a short span of time.
As a result, dry bulk shipping rates are susceptible to volatility. Moreover, a continuous increase in the number of vessels under operation has resulted in intense price competition.