Net income climbed to US$180 million, or US$4.21 a share, from US$105.3 million, or US$2.97, a year earlier, it said on Monday. The figure missed the US$5.06-a- share average of five analyst estimates compiled by Bloomberg.
Sales from leasing ships gained 60 per cent to US$240 million from US$150 million.
DryShips, based in Athens, transferred most of its ships to multiple voyage, time-charter contracts as single-voyage rates fell due to the global economic slowdown and frozen credit markets. Shippers are having more difficulty securing the letters of credit they need to fund cargo purchases.
'The uncertain dry-bulk environment and DryShips' relatively high spot market exposure in 2009 could be of potential concern,' Natasha Boyden, an analyst at Cantor Fitzgerald in New York, said in a note.
About 41 per cent of the fleet's operating days for next year are without charters, she said. Ms Boyden, who has a 'buy' rating on the stock, lowered her 2008 earnings-per-share estimate to US$11.68, from US$13.32, and her 2009 estimate to US$6, from US$8.05.
Chief executive George Economou in May said he wanted more stable cash flow to pay for ship purchases, including the acquisition of deep-water drill ships that the company intends to spin off into a separate unit in the first quarter.
The spinoff 'could highlight the significant shareholder value tied up in those assets,' Ms Boyden said.
The Baltic Dry Index, a measure of shipping costs on international trade routes, posted record daily, weekly, monthly and quarterly declines during the period ended Sept 30. Overall, it fell 66 per cent in the third quarter. The index's average during the period was 3.9 per cent lower than a year earlier.
'The lack of financing of global trade has temporarily brought the spot market to a virtual standstill but we expect this situation to normalise as the credit crunch subsides and stockpiles are gradually but steadily drawn down,' Mr Economou said.
Ship rates are also being kept down by a pricing standoff between Chinese steelmakers and Cia Vale Do Rio Doce, the world's biggest iron-ore producer, according to Peter Norfolk, a shipping analyst at Simpson, Spence & Young Ltd in London. Vale wants to raise prices a second time this year while buyers want them lowered because of production cuts, the China Iron & Steel Association said on Oct 16.
Net income included a gain from the sale of two ships of US$65.8 million, or US$1.54 a share, as well as a loss of US$36.8 million, or 86 cents a share, from interest rate swaps. Excluding those items, profit was US$151 million, or US$3.53 a share.