The Athens, Greece-based DryShips reported a $1.44bn loss in the second quarter but delivered an operational profit that was in-line with expectations.
DryShips is an international provider of marine transportation services for drybulk and petroleum cargoes, and through its affiliate, Ocean Rig, of offshore deepwater drilling services.
The company has a loss of $2.17 per share. Earnings, adjusted for non-recurring costs and asset impairment costs, were 6 cents per share.
The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 7 cents per share.
George Economou, Chairman and Chief Executive Officer of the Company, commented: "Dryships second quarter results were burdened with one-off non-cash losses mainly associated with the deconsolidation of Ocean Rig. More recently, our stake in Ocean Rig has fallen even further as a result of the settlement of the $120 million promissory note by means of shares of Ocean Rig."
Following the consummation of the transaction, Dryships will continue to remain the largest single shareholder in Ocean Rig with an approximately 40% direct ownership, he said.
George says: "We are currently focused on the delivery of our tankers to their new owners. We have already delivered 3 Suezmax tankers and 2 Aframax tankers and we expect to deliver the remaining 5 tankers by the end of September 2015."
"Going forward, Dryships' cashflow will be driven solely by the conditions of the drybulk market, given also the recent dividend suspension announced by Ocean Rig. We believe that the recent improvement in the drybulk market, while helpful, does not significantly change our outlook for a challenging environment in the next 18 months, and we remain prepared for the uncertainty ahead."
The operator of oil rigs and dry cargo carriers posted revenue of $403.2 million in the period.