DryShips: A Hidden Gem

Dryships (DRYS) 3rd quarter earnings:

Consensus: $0.25 a share on revenue of $216.92 million

3rd Quarter Profit was $49 million, or 0.18 a share, up from $31.4 million, or 0.11 a share, a year ago. On an adjusted basis, the company earned 0.38 a share. Revenue was $225.5 million, up from $222.2 million.

Therefore, DRYS beat on earnings and revenue.

But more importantly, the deepwater drilling segment may have just started to pay off. On November 11th, it reported signing its second order. More may be on the way. As oil becomes less abundant on land, oil majors are turning to deepwater oil fields. Petrobras (PBR) found a massive deepwater oil field off the coast of Brazil a few years ago. To drill in deepwater takes special ships and equipment to do. And the ships take a very long time to build. Therefore, Dryship’s deepwater drilling segment has an advantage. As demand grows, more contracts should come. (more)