In an alert issued Monday morning Erik Nikolai Stavseth of Arctic Securities reminded clients that the other segments in which the Nasdaq-quoted operator is active are still suffering.
“Despite the improved market for crude tankers, the majority of DryShips’ business is still struggling within a challenging market,” the forecaster explained.
“Both the dry-bulk and drilling markets are currently facing headwinds, and we do not see any near-term improvements [on the horizon for either sector].”
When DryShips publishes fourth-quarter earnings later this week Stavseth believes the Athens-based owner will report revenues of roughly $569m for the period.
The Oslo-based forecaster expects to see earnings before interest, taxes, depreciation and amortization of approximately $287m and $0.04 in earnings per share.
Going forward, Stavseth also argued that DryShips, which is led by chief executive George Economou, will likely need to secure “additional funding” prior to year-end.
“DryShips will have to refinance a $200m loan facility in the fourth-quarter of 2015,” the analyst continued in his fourth-quarter earnings preview.
If day rates in the dry-bulk segment don’t improve or Ocean Rig cuts its dividend Stavseth believes the Greek operator will be forced to issue additional equity.
Today, shares of DryShips slipped 1.48% to $0.96 in midday trading, which is $0.26 higher than the forecaster’s most recent price target for the Nasdaq-quoted stock.
