In this video, Blake Bos examines some of the fundamentals of DryShips (NASDAQ: DRYS ) . The past quarter results were negative all around, but the simple metrics of revenues and costs bode ill for the company. For example, the revenue received per vessel per day is around $11,300, a 40% decline from 2011 rates. The daily ship expense rate is $5,000, and the daily debt expense per vessel is about $8,100. So, it costs DryShips about $13,100/day to operate its ships, while it receives only $11,300/day in revenue. Aggravating all this is $4.4 billion in debt, which is partially offset by DryShips' equity stake in Ocean Rig (NASDAQ: ORIG ) . All around, if you want to invest in a shipping company, an outfit with newer vessels like Diana Shipping Inc. looks like a better bet than DryShips.
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