SOURCE: DryShips Inc.

DryShips Inc.

August 30, 2011 16:57 ET

DryShips Inc. Reports Financial and Operating Results for the Second Quarter 2011

ATHENS, GREECE--(Marketwire - Aug 30, 2011) - DryShips Inc. (NASDAQ: DRYS), or the Company, a global provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., of off-shore contract drilling oil services, today announced its unaudited financial and operating results for the second quarter and six month period ended June 30, 2011.

Second Quarter 2011 Financial Highlights

  • For the second quarter of 2011, the Company reported a net loss of $114.1 million, or $0.33 basic and diluted loss per share. Included in the second quarter 2011 results are infrequently occurring and non-cash items, totaling $131.5 million, or $0.37 per share which are described below. Excluding infrequently occurring and non-cash items, the Company's net results would have amounted to a net income of $17.4 million or $0.04 per share.

    Infrequently occurring and non-cash items included in the second quarter 2011 results are the following:

    • Impairment losses from the sale of vessels La Jolla, Conquistador, Samsara, Brisbane and Toro, net of gain from the total loss of the Oliva, amounting to $87.0 million, or $0.25 per share.

    • Incremental costs associated with the class survey of Leiv Eiriksson in the second quarter of 2011 of $8.6 million, or $0.02 per share. Next survey is scheduled for 2016.

    • Losses incurred on our interest rate swaps, amounting to $35.9 million, or $0.10 per share.

  • Basic loss per share for the second quarter of 2011 includes an increase to net loss amounting to $1.4 million relating to the cumulative payment-in-kind dividends on the Series A Convertible Preferred Stock, which reduces the income available to common shareholders.

  • The Company reported Adjusted EBITDA of $136.2 million for the second quarter of 2011. Please see later in this release for a reconciliation of Adjusted EBITDA to net income.

George Economou, Chairman and Chief Executive Officer of the Company, commented:

"We are pleased to report on the progress made on initiatives that have been underway for several months. One of the most significant milestones was the commencement by Ocean Rig UDW on August 26, 2011 of its offer to exchange shares that have been registered with the US SEC for shares that were issued in a private Norwegian offering in 2010. On August 4, 2011, we also announced the partial spin off of Ocean Rig UDW by way of a dividend to our shareholders, this dividend is the first step in delivering value to our shareholders from our investment in the offshore deep water drilling sector. By mid-September we expect these shares will be tradable on a 'when issued' basis on the Nasdaq Global Select Market and to begin 'regular-way' trading in October under the symbol 'ORIG.'

"On July 26th, we also announced a merger agreement with OceanFreight Inc. This transaction provides DryShips with an opportunity to consolidate the fragmented drybulk sector by acquiring a high quality, modern fleet with long-term charters and increase our presence in the Capesize sector.

"My colleagues at OceanRig have been busy taking delivery of our new drillships from Samsung and putting them to work efficiently. On July 28th we took delivery of the OceanRig Poseidon, two days ahead of schedule. The first three drillships have all been delivered on time or ahead of schedule and sailed immediately upon delivery from the shipyard to the drilling area and commenced operations.

"This was a particular quarter for our drilling segment during which three of our four units commenced new contracts which required mobilization before we were in a position to earn the full contractual daily operating rate. As such, earnings from drilling operations this quarter do not reflect the full earnings capacity of our drilling fleet."

Recent Events

  • We sold the vessels La Jolla, Conquistador, Brisbane, Samsara and Toro for a total sales price of $90.1 million. The vessels La Jolla and Conquistador were delivered on July 20 and July 25, 2011, respectively, the vessel Samsara was delivered on August 24, 2011, while the remaining two vessels are scheduled for delivery in September and October, respectively.

  • On July 26, 2011, we entered into a definitive agreement to acquire 100% of the shares of OceanFreight Inc. ("OceanFreight") a company listed on the Nasdaq Global Select Market under the ticker symbol OCNF with a fleet comprised of four Capesize bulk carriers, two Panamax bulk carriers, and five Very Large Ore Carriers under construction with delivery scheduled in 2012 and 2013. Under the terms of the merger agreement, OceanFreight shareholders will be paid $11.25 per share in cash and they will also receive 0.52326 shares of Ocean Rig UDW Inc. for every share they own of OceanFreight. We will also assume $143 million dollars in debt as a result of this transaction. As a result of the purchase agreement, on August 24, 2011, we purchased 3,000,856 shares of OceanFreight Inc. from entities controlled by Mr. Anthony Kandylidis, the CEO of OceanFreight, for the same price as will be paid to OceanFreight shareholders in the merger. These shares represent a majority of the outstanding shares of OceanFreight. The merger with OceanFreight is expected to close in the fourth quarter 2011.

  • On July 28, 2011 Ocean Rig took delivery of its newbuilding drillship, the Ocean Rig Poseidon, the third of four sixth generation, ultra-deepwater sister drillships being constructed by Samsung. In connection with the delivery of the Ocean Rig Poseidon, the final yard installment of $309.3 million was paid, which was financed with additional drawdowns in July 2011 under the Company's Deutsche Bank credit facility.

  • On August 1, 2011, as subsequently amended, Ocean Rig UDW, filed with the US Securities and Exchange Commission a Form F-4 registration statement, or the Exchange Offer Registration Statement, relating to the offer to exchange up to 28,571,428 new common shares of Ocean Rig UDW that have been registered under the Securities Act of 1933, as amended (Securities Act), for an equivalent number of common shares of Ocean Rig UDW, previously sold in a private offering made in December 2010 to both non-U.S. persons in Norway in reliance on Regulation S under the Securities Act and to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act. On Friday, August 26, 2011 the Exchange Offer Registration Statement was declared effective and we commenced the exchange offer.

  • On August 4, 2011, our board of directors announced that it approved the partial spin-off of our interest in Ocean Rig UDW. We will distribute approximately 2,967,359 shares of common stock of Ocean Rig UDW, which will reduce our ownership interest in Ocean Rig UDW by approximately 2%. The number of shares of common stock of Ocean Rig UDW to be distributed for each share of common stock of the Company will be determined by dividing 2,967,359 by the aggregate number of issued and outstanding shares of common stock of the Company on September 21, 2011, the record date for the distribution. Ocean Rig UDW has applied to list its common stock on the Nasdaq Global Select Market under the symbol "ORIG."

Financial Review: 2011 Second Quarter

The Company recorded a net loss of $114.1 million, or $0.33 basic and diluted losses per share, for the three-month period ended June 30, 2011, as compared to net income of $19.5 million, or $0.07 basic and diluted earnings per share, for the three-month period ended June 30, 2010. Adjusted EBITDA, which is defined and reconciled later in this press release, was $136.2 million for the second quarter of 2011 as compared to $152.3 million for the same period in 2010.

Included in the second quarter 2011 results are infrequently occurring and non-cash items totaling $131.5 million, or $0.37 per share, which are described at the beginning of this press release. Excluding infrequently occurring and non-cash items, our adjusted Net Income amounts to $17.4 million, or $0.04 per share.

Basic loss per share, for the second quarter of 2011 includes a non-cash accrual for the cumulative payment-in-kind dividends on the Series A Convertible Preferred Stock, amounting to $1.4 million, which reduces the income available to common shareholders.

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $87.7 million for the three-month period ended June 30, 2011, as compared to $108.8 million for the three-month period ended June 30, 2010. For the offshore drilling segment, revenues from drilling contracts increased by $17.6 million to $126.6 million for the three-month period ended June 30, 2011 as compared to $109.0 million for the same period in 2010. For the tanker segment, net voyage revenues amounted to $4.1 million for the three-month period ended June 30, 2011.

Total vessel and rig operating expenses and total depreciation and amortization increased to $84.9 million and $65.1 million, respectively, for the three-month period ended June 30, 2011 from $46.7 million and $48.3 million, respectively, for the three-month period ended June 30, 2010. Total general and administrative expenses increased to $26.7 million in the second quarter of 2011 from $16.8 million during the comparative period in 2010.

Interest and finance costs, net of interest income, amounted to $33.3 million for the three-month period ended June 30, 2011, compared to $13.3 million for the three-month period ended June 30, 2010.

Fleet List

The table below describes our fleet profile as of August 30, 2011

Year Gross rate Redelivery
Built DWT Type Per day Earliest Latest
Dry fleet
Capesize:
Alameda 2001 170,662 Capesize $27,500 Nov-15 Jan-16
Brisbane 1995 151,066 Capesize $25,000 Sep-11 Sep-11
Capri 2001 172,579 Capesize Spot
Flecha 2004 170,012 Capesize $55,000 Jul-18 Nov-18
Manasota 2004 171,061 Capesize $30,000 Jan-18 Aug-18
Mystic 2008 170,040 Capesize $52,310 Aug-18 Dec-18
Panamax:
Amalfi 2009 75,206 Panamax $39,750 Aug- 13 Oct- 13
Avoca 2004 76,629 Panamax $45,500 Sep-13 Dec-13
Bargara 2002 74,832 Panamax $43,750 May-12 Jul-12
Capitola 2001 74,816 Panamax Spot
Catalina 2005 74,432 Panamax $40,000 Jun-13 Aug-13
Coronado 2000 75,706 Panamax $18,250 Sep-11 Nov-11
Ecola 2001 73,931 Panamax $43,500 Jun-12 Aug-12
Levanto 2001 73,925 Panamax $16,800 Sep-11 Nov-11
Ligari 2004 75,583 Panamax $55,500 Jun-12 Aug-12
Maganari 2001 75,941 Panamax $14,500 Sept-11 Sep-11
Majorca 2005 74,477 Panamax $43,750 Jun-12 Aug-12
Marbella 2000 72,561 Panamax $14,750 Aug-11 Nov-11
Mendocino 2002 76,623 Panamax $56,500 Jun-12 Sep-12
Ocean Crystal 1999 73,688 Panamax $15,000 Aug-11 Nov-11
Oregon 2002 74,204 Panamax $16,350 Aug-11 Oct-11
Padre 2004 73,601 Panamax $46,500 Sep-12 Dec-12
Positano 2000 73,288 Panamax $42,500 Sep-13 Dec-13
Rapallo 2009 75,123 Panamax $15,400 Aug-11 Oct-11
Redondo 2000 74,716 Panamax $34,500 Apr-13 Jun-13
Saldanha 2004 75,707 Panamax $52,500 Jun-12 Sep-12
Samatan 2001 74,823 Panamax Spot
Sonoma 2001 74,786 Panamax $19,300 Sept- 11 Nov- 11
Sorrento 2004 76,633 Panamax $17,300 Sep-11 Dec-11
Toro 1995 73,035 Panamax Spot
Supramax:
Galveston 2002 51,201 Supramax Spot
Byron 2003 51,201 Supramax Spot
Newbuildings
Panamax 1 2011 76,000 Panamax
Panamax 2 2012 76,000 Panamax
Capesize 1 2012 176,000 Capesize
Capesize 2 2012 176,000 Capesize
Year Gross rate
Built DWT Type Per day
Tanker fleet
Vilamoura 2011 158,300 Suezmax Blue Fin Pool
Saga 2011 115,200 Aframax Sigma Pool
Daytona 2011 115,200 Aframax Sigma Pool
Newbuildings
Alicante 2012 115,200 Aframax
Belmar 2011 115,200 Aframax
Calida 2011 115,200 Aframax
Mareta 2012 115,200 Aframax
Blanca 2013 158,300 Suezmax
Bordeira 2013 158,300 Suezmax
Esperona 2013 158,300 Suezmax
Lipari 2012 158,300 Suezmax
Petalidi 2012 158,300 Suezmax
Drilling Units
Year Built or Scheduled Delivery / Generation Contract Term Backlog
($ million)
Existing Drilling Rigs
Leiv Eiriksson 2001 / 5th Q2 2011 - Q4 2011
Q4 2011 - Q2 2012
$68
$126
Eirik Raude 2002 / 5th Q4 2008 - Q4 2011 $67
Existing Drillships
Ocean Rig Corcovado 2011 / 6th Q1 2011 - Q4 2011
Q4 2011 - Q4 2014
$69
$534
Ocean Rig Olympia 2011 / 6th Q2 2011 - Q2 2012 $127
Ocean Rig Poseidon Q3 2011 / 6th Q3 2011 - Q2 2013 $378
Newbuilding Drillships
Ocean Rig Mykonos Q3 2011 / 6th Q4 2011 - Q4 2014 $528
OCR Drillship TBN #1 Q3 2013 / 7th
OCR Drillship TBN #2 Q4 2013 / 7th
OCR Drillship TBN #3 Q4 2013 / 7th
Total $1,897
Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited)
(Dollars in thousands, except average daily results)
Drybulk Three Months Ended June 30, Six Months Ended June 30,
2010 2011 2010 2011
Average number of vessels(1) 37.0 35.0 37.3 35.9
Total voyage days for vessels(2) 3,330 3,123 6,644 6,342
Total calendar days for vessels(3) 3,367 3,188 6,751 6,503
Fleet utilization(4) 98.9 % 97.9 % 98.4 % 97.5 %
Time charter equivalent(5) $ 32,659 $ 28,080 $ 32,455 $ 28,101
Vessel operating expenses (daily)(6) $ 4,849 $ 6,435 $ 5,271 $ 6,107
Tanker Three Months Ended June 30, 2011 Six Months Ended June 30, 2011
Average number of vessels(1) 2.6 1.8
Total voyage days for vessels(2) 245 326
Total calendar days for vessels(3) 245 326
Fleet utilization(4) 100 % 100 %
Time charter equivalent(5) $ 16,935 $ 15,945
Vessel operating expenses (daily)(6) $ 8,600 $ 12,239

(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of off hire days.
(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including off hire days.
(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

Drybulk Three Months Ended June 30, Six Months Ended June 30,
2010 2011 2010 2011
Voyage revenues $ 115,266 $ 93,140 $ 229,169 $ 190,128
Voyage expenses (6,510 ) (5,446 ) (13,537 ) (11,912 )
Time charter equivalent revenues $ 108,756 $ 87,694 $ 215,632 $ 178,216
Total voyage days for fleet 3,330 3,123 6,644 6,342
Time charter equivalent TCE $ 32,659 $ 28,080 $ 32,455 $ 28,101
Tanker Three Months Ended June 30, 2011 Six Months Ended June 30, 2011
Voyage revenues $ 4,249 $ 5,348
Voyage expenses (100 ) (150 )
Time charter equivalent revenues $ 4,149 $ 5,198
Total voyage days for fleet 245 326
Time charter equivalent TCE $ 16,935 $ 15,945

(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.

Dryships Inc.
Financial Statements
Unaudited Condensed Consolidated Statements of Operations
(Expressed in Thousands of U.S. Dollars except for share and per share data) Three Months Ended June 30, Six Months Ended June 30,
2010 2011 2010 2011
(as restated) (as restated)
REVENUES:
Voyage revenues $ 115,266 $ 97,389 $ 229,169 $ 195,476
Revenues from drilling contracts 108,972 126,629 189,228 235,955
224,238 224,018 418,397 431,431
EXPENSES:
Voyage expenses 6,510 5,546 13,537 12,062
Vessel operating expenses 16,327 22,622 35,586 43,706
Drilling rigs operating expenses 30,408 62,288 59,508 104,137
Depreciation and amortization 48,324 65,106 95,482 121,021
Vessel impairments and other, net 430 87,747 (10,254 ) 87,745
General and administrative expenses 16,823 26,720 44,011 52,397
Operating income / (loss) 105,416 (46,011 ) 180,527 10,363
OTHER INCOME / (EXPENSES):
Interest and finance costs, net of interest income (13,318 ) (33,293 ) (30,213 ) (48,902 )
Loss on interest rate swaps (63,790 ) (35,920 ) (98,427 ) (39,775 )
Other, net (1,481 ) 1,223 (7,209 ) 2,279
Income taxes (7,361 ) (3,817 ) (11,938 ) (9,778 )
Total other expenses (85,950 ) (71,807 ) (147,787 ) (96,176 )
Net income / (loss) 19,466 (117,818 ) 32,740 (85,813 )
Net income/ (loss) attributable to Non controlling interests - 3,729 - (2,511 )
Net income / (loss) attributable to Dryships Inc.
$

19,466

$
(114,089 )
$

32,740

$
(88,324 )
Earnings/(loss) per common share, basic and diluted $ 0.07 $ (0.33 ) $ 0.10 $ (0.27 )
Weighted average number of shares, basic and diluted 255,199,773 351,297,180 255,012,737 344,259,487
Dryships Inc.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in Thousands of U.S. Dollars) December 31, 2010 June 30, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 391,530 $ 367,674
Restricted cash 578,311 112,504
Trade accounts receivable, net 25,204 84,897
Other current assets 70,065 146,610
Total current assets 1,065,110 711,685
FIXED ASSETS, NET:
Advances for assets under construction and acquisitions 2,072,699 1,889,230
Vessels, net 1,917,966 1,863,092
Drilling rigs, machinery and equipment, net 1,249,333 2,969,074
Total fixed assets, net 5,239,998 6,721,396
OTHER NON CURRENT ASSETS:
Restricted cash 195,517 328,209
Other non-current assets 483,869 106,186
Total non current assets 679,386 434,395
Total assets 6,984,494 7,867,476
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt 731,232 429,957
Other current liabilities 204,203 297,946
Total current liabilities 935,435 727,903
NON CURRENT LIABILITIES
Long-term debt, net of current portion 1,988,460 3,158,115
Other non-current liabilities 161,070 145,281
Total non current liabilities 2,149,530 3,303,396
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY:
Total Dryships Inc. stockholders' equity 3,363,253 3,295,891
Non controlling interests 536,276 540,286
Total equity 3,899,529 3,836,177
Total liabilities and stockholders equity $ 6,984,494 $ 7,867,476
Ocean Rig UDW Inc.
Financial Statements
Unaudited Condensed Consolidated Statements of Operations
(Expressed in Thousands of U.S. Dollars-
except for share and per share data)
Six Months Ended
June 30,
2010 2011
(As restated)
REVENUES:
Revenues from drilling contracts $ 189,228 $ 235,955
EXPENSES:
Drilling rigs operating expenses 59,508 104,137
Depreciation and amortization 37,966 64,908
Loss on disposals 430 87
General and administrative expenses 10,075 15,730
Operating income 81,249 51,093
OTHER INCOME / (EXPENSES):
Interest and finance costs (5,738 ) (22,214 )
Interest income 5,825 10,394
Loss on interest rate swaps (34,501 ) (18,616 )
Other, net (3,752 ) (446 )
Income taxes (11,938 ) (9,778 )
Total other expenses, net (50,104 ) (40,660 )
Net income $ 31,145 $ 10,433
Earnings per common share, basic and diluted $ 0.30 $ 0.08
Weighted average number of shares, basic and diluted 103,125,500 131,696,928
Ocean Rig UDW Inc.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in Thousands of U.S. Dollars) December 31, 2010 June 30, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 95,707 $ 191,744
Restricted cash 512,793 95,183
Trade accounts receivable, net 24,286 73,202
Other current assets 39,220 83,866
Total current assets 672,006 443,995
FIXED ASSETS, NET:
Advances for assets under construction and acquisitions 1,888,490 1,704,350
Drilling rigs, machinery and equipment, net 1,249,333 2,940,888
Total fixed assets, net 3,137,823 4,645,238
OTHER NON CURRENT ASSETS:
Other non-current assets 533,869 230,795
Total non current assets 533,869 230,795
Total assets 4,343,698 5,320,028
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt 560,561 231,218
Other current liabilities 107,357 203,373
Total current liabilities 667,918 434,591
NON CURRENT LIABILITIES
Long-term debt, net of current portion 696,986 1,891,319
Other non-current liabilities 97,712 89,128
Total non current liabilities 794,698 1,980,447
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY:
Total stockholders' equity 2,881,082 2,904,990
Total equity 2,881,082 2,904,990
Total liabilities and stockholders' equity $ 4,343,698 $ 5,320,028

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, vessel impairments and gains or losses on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations and efficiency. Adjusted EBITDA is also used by our lenders as a measure of our compliance with certain covenants contained in our loan agreements and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

The following table reconciles net income to Adjusted EBITDA:

(Dollars in thousands) Three Months Ended June 30, 2010
(As restated)
Three Months Ended June 30, 2011 Six Months Ended June 30, 2010
(As restated)
Six Months Ended June 30, 2011
Net income / (loss) 19,466 (114,089 ) 32,740 (88,324 )
Add: Net interest expense 13,318 33,293 30,213 48,902
Add: Depreciation and amortization 48,324 65,106 95,482 121,021
Add: Impairment losses - 112,104 - 112,104
Add: Income taxes 7,361 3,817 11,938 9,778
Add: Loss on interest rate swaps 63,790 35,920 98,427 39,775
Adjusted EBITDA 152,259 136,151 268,800 243,256

Conference Call and Webcast: August 31, 2011

As announced, the Company's management team will host a conference call, on August 31, 2011 at 8:00 a.m. Eastern Daylight Time to discuss the Company's financial results.

Conference Call Details

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) 1452 542 301 (from outside the US). Please quote "DryShips."

A replay of the conference call will be available until September 2, 2011. The United States replay number is 1(866) 247- 4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 55 00 00 and the access code required for the replay is: 2133051#.

A replay of the conference call will also be available on the Company's website at www.dryships.com under the Investor Relations section.

Slides and Audio Webcast

There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About DryShips Inc.

DryShips Inc. is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 9 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships, 4 of which remain to be delivered to Ocean Rig during 2011 and 2013. DryShips owns a fleet of 36 drybulk carriers (including newbuildings), comprising 8 Capesize, 26 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.4 million tons, and 12 tankers (including newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.6 million tons.

DryShips' common stock is listed on the NASDAQ Global Select Market where it trades under the symbol "DRYS."

Visit the Company's website at www.dryships.com

Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by DryShips Inc. with the US Securities and Exchange Commission.

Contact Information

  • Investor Relations / Media:
    Nicolas Bornozis
    Capital Link, Inc. (New York)
    Tel. 212-661-7566
    E-mail: dryships@capitallink.com