SOURCE: DryShips Inc.

DryShips Inc.

August 05, 2014 16:02 ET

DryShips Inc. Reports Financial and Operating Results for the Second Quarter 2014

ATHENS, GREECE--(Marketwired - Aug 5, 2014) - DryShips Inc. (NASDAQ: DRYS), or DryShips or the Company, an international provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling services, today announced its unaudited financial and operating results for the second quarter ended June 30, 2014.

Second Quarter 2014 Financial Highlights

  • For the second quarter of 2014, the Company reported a net loss of $5.6 million, or $0.01 basic and diluted loss per share.

  • The Company reported Adjusted EBITDA of $220.5 million for the second quarter of 2014, as compared to $112.3 million for the second quarter of 2013.(1)

Recent Highlights

  • On July 25, 2014, Ocean Rig entered into a $1.3 billion Senior Secured Term Loan B facility to refinance the $1.35 billion Senior Secured Credit Facility, which had a balance of approximately $1.3 billion on that date. Consequently, an amount of $75 million which was previously restricted under the $1.35 billion facility was released to Ocean Rig. The new Term Loan B facility is secured primarily by first priority mortgages on the drillships, Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena, bears interest at LIBOR plus a margin, and matures on July 25, 2021.

  • On July 21, 2014, Ocean Rig announced that its Board of Directors declared a quarterly cash dividend with respect to the quarter ended June 30, 2014 of $0.19 per common share, to shareholders of record as of August 1, 2014 and payable on or about August 11, 2014.

  • On July 18, 2014, the Company signed a firm commitment letter from Nordea Bank for an up to $170 million senior secured credit facility to finance nine Drybulk vessels. Nordea Bank has committed to fully underwrite this facility which is expected to have a five year term and bears interest at LIBOR plus a margin. Six out of the nine vessels are currently mortgaged under the Company's $325 million Senior Credit Facility which has a balance of $58.1 million as of July 31, 2014. The remaining three vessels are currently debt free. The availability of this facility is subject to final documentation and certain conditions precedent.

  • On July 16, 2014, the Company received a firm commitment letter for an up to $350 million secured bridge loan facility, to partially refinance its 5.00% convertible bond maturing December 1, 2014. ABN AMRO Bank N.V. is expected to be the Lead Arranger and commit $200 million in this facility. The facility is subject to definitive documentation. We expect it will be secured by Ocean Rig shares owned by the Company, will contain certain conditions precedent, will mature 12 months from the drawdown date or such period as may be extended by the lenders for up to 12 months and will be subject to mandatory prepayment in certain events.

  • On July 11, 2014, the Company entered into a supplemental agreement under the secured term loan facility dated July 23, 2008, to among other things, release the vessel Woolloomoloo from the collateral package under this loan.

  • On June 7, 2014, the Ocean Rig Athena commenced drilling operations under the three year contract for drilling offshore Angola with ConocoPhillips.

  • On June 3, 2014, Ocean Rig signed definitive documentation, following the previously announced contract award, for the 6 year contract for drilling operations offshore Angola for its ultra deepwater drillship the Ocean Rig Skyros, with Total E&P Angola Block 32. The contract is expected to commence in the third quarter of 2015 and has an estimated backlog of $1.3 billion.

  • On June 3, 2014, Ocean Rig signed a drilling contract for one of its semi-submersible drilling rigs, the Eirik Raude. The drilling contract is for a minimum six-well program, with an estimated duration of about 260 days, for drilling offshore the Falkland Islands, with an estimated backlog of approximately $164 million. The rig is scheduled to commence drilling operations during the first quarter of 2015.

  • During the second quarter of 2014, the Company did not resume sales under its previously announced $200 million program of at the market issuances of its common shares through Evercore Group L.L.C. as its sales agent. To date the Company has sold 29,102,077 common shares pursuant to the at-the-market offering, resulting in net proceeds of $113.7 million, after deducting commissions.

(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income.

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

"Our liquidity position has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which are performing above expectations for this time of the year. The drybulk carrier segment had a weak second quarter of 2014, but we believe that the pace of newbuilding deliveries is tapering off and when combined with continuing robust demand, will lead to a sustainable recovery in charter rates. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has predominantly spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.

"We are delighted to have received firm commitments for a total of up to $520 million from ABN AMRO and Nordea Bank, which is a testament of the Company's strong and long lasting relationship with commercial lenders and a clear sign of the support DryShips is enjoying from the banking industry. This is the first major milestone towards the refinancing of the 5% Convertible Notes maturing in December and we continue to pursue various alternatives for the remainder of the balance.

"Turning to our offshore drilling interests, Ocean Rig continues to execute on its business plan. Ocean Rig's modern fleet, strong balance sheet and solid contract backlog, provides it with the foundation to implement its previously announced value creation initiatives which will also have a direct benefit to its shareholders including Dryships."

Financial Review: 2014 Second Quarter

The Company recorded a net loss of $5.6 million, or $0.01 basic and diluted loss per share, for the three-month period ended June 30, 2014 as compared to a net loss of $18.2 million, or $0.05 basic and diluted loss per share, for the three-month period ended June 30, 2013. Adjusted EBITDA(1) was $220.5 million for the second quarter of 2014, as compared to $112.3 million for the same period in 2013.

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $41.7 million for the three-month period ended June 30, 2014, as compared to $42.4 million for the three-month period ended June 30, 2013. For the tanker segment, net voyage revenues amounted to $14.2 million for the three-month period ended June 30, 2014, as compared to $9.1 million for the same period in 2013. For the offshore drilling segment, revenues from drilling contracts increased by $181.6 million to $441.4 million for the three-month period ended June 30, 2014, as compared to $259.8 million for the same period in 2013.

Total vessels', drilling rigs' and drillships' operating expenses and total depreciation and amortization increased to $213.0 million and to $112.7 million, respectively, for the three-month period ended June 30, 2014, from $142.5 million and $85.8 million, respectively, for the three-month period ended June 30, 2013. Total general and administrative expenses increased to $41.5 million in the second quarter of 2014, from $37.2 million during the same period in 2013.

Interest and finance costs, net of interest income, amounted to $86.0 million for the three-month period ended June 30, 2014, compared to $56.0 million for the three-month period ended June 30, 2013.

The Time Charter Equivalent(2), or TCE, rate for our drybulk fleet was $12,064 per day per vessel in the three month period ended June 30, 2014, as compared to $12,756 per day per vessel in the corresponding period of 2013. The Time Charter Equivalent, or TCE, rate for our tanker fleet was $15,650 per day per vessel in the three month period ended June 30, 2014 which is a significant improvement compared to the $10,004 per day per vessel TCE rate in the corresponding period of 2013.

(1) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income.
(2) Time Charter Equivalent is a non-GAAP measure; please see later in this press release for definition.

Fleet List

The table below describes our fleet profile and drilling contract backlog as of July 31, 2014:

                         
    Year
Built
 
DWT
 
Type
  Gross rate
Per day
  Redelivery
Earliest
 
Latest
Drybulk fleet                        
                         
Capesize:                        
Rangiroa   2013   206,000   Capesize   $23,000   Apr-18   Nov-23
Negonego   2013   206,000   Capesize   $21,500   Mar-20   Feb-28
Fakarava   2012   206,000   Capesize   $25,000   Sept-15   Sept-20
Raiatea (ex. Conches)   2011   179,078   Capesize   $26,000   Aug-14   Jan-15
Mystic   2008   170,040   Capesize   $52,310   Aug-18   Dec-18
Robusto   2006   173,949   Capesize   $26,000   Aug-14   Apr-18
Cohiba   2006   174,234   Capesize   $26,250   Oct-14   Jun-19
Montecristo   2005   180,263   Capesize   $23,500   Aug-14   Feb-19
Flecha   2004   170,012   Capesize   $55,000   Jul-18   Nov-18
Manasota   2004   171,061   Capesize   $30,000   Jan-18   Aug-18
Partagas   2004   173,880   Capesize   $11,500   Aug-14   Oct-14
Alameda   2001   170,662   Capesize   $27,500   Nov-15   Jan-16
Capri   2001   172,579   Capesize   $20,000   Jan-16   May-16
                         
Panamax:                        
Raraka   2012   76,037   Panamax   $7,500   Jan-15   Mar-15
Woolloomooloo   2012   76,064   Panamax   $7,500   Dec-14   Feb-15
Amalfi   2009   75,206   Panamax   Spot   N/A   N/A
Rapallo   2009   75,123   Panamax   T/C Index linked   Jul-16   Sep-16
Catalina   2005   74,432   Panamax   Spot   N/A   N/A
Majorca   2005   74,477   Panamax   Spot   N/A   N/A
Ligari   2004   75,583   Panamax   Spot   N/A   N/A
Saldanha   2004   75,707   Panamax   Spot   N/A   N/A
Sorrento   2004   76,633   Panamax   $24,500   Aug-21   Dec-21
Mendocino   2002   76,623   Panamax   T/C Index linked   Sep-16   Nov-16
Bargara   2002   74,832   Panamax   T/C Index linked   Sep-16   Nov-16
Oregon   2002   74,204   Panamax   Spot   N/A   N/A
Ecola   2001   73,931   Panamax   Spot   N/A   N/A
Samatan   2001   74,823   Panamax   Spot   N/A   N/A
Sonoma   2001   74,786   Panamax   Spot   N/A   N/A
Capitola   2001   74,816   Panamax   Spot   N/A   N/A
Levanto   2001   73,925   Panamax   T/C Index linked   Aug-16   Oct-16
Maganari   2001   75,941   Panamax   Spot   N/A   N/A
Coronado   2000   75,706   Panamax   Spot   N/A   N/A
Marbella   2000   72,561   Panamax   Spot   N/A   N/A
Redondo   2000   74,716   Panamax   Spot   N/A   N/A
Topeka   2000   74,716   Panamax   Spot   N/A   N/A
Ocean Crystal   1999   73,688   Panamax   Spot   N/A   N/A
Helena   1999   73,744   Panamax   Spot   N/A   N/A
                         
Supramax:                        
Byron   2003   51,118   Supramax   Spot   N/A   N/A
Galveston   2002   51,201   Supramax   Spot   N/A   N/A
                         
    Year Built/or
Scheduled Delivery
 
DWT
 
Type
  Gross rate
Per day
  Redelivery
Earliest
 
Latest
Newbuildings                        
Panamax:                        
Newbuilding Ice -class Panamax 1   TBD   75,900   Panamax   N/A   N/A   N/A
Newbuilding Ice -class Panamax 2   TBD   75,900   Panamax   N/A   N/A   N/A
Newbuilding Ice -class Panamax 3   TBD   75,900   Panamax   N/A   N/A   N/A
Newbuilding Ice -class Panamax 4   TBD   75,900   Panamax   N/A   N/A   N/A
Tanker fleet                        
Suezmax:                        
Bordeira   2013   158,300   Suezmax   Spot   N/A   N/A
Petalidi   2012   158,300   Suezmax   Spot   N/A   N/A
Lipari   2012   158,300   Suezmax   Spot   N/A   N/A
Vilamoura   2011   158,300   Suezmax   Spot   N/A   N/A
Aframax:                        
Alicante   2013   115,200   Aframax   Spot   N/A   N/A
Mareta   2013   115,200   Aframax   Spot   N/A   N/A
Calida   2012   115,200   Aframax   Spot   N/A   N/A
Saga   2011   115,200   Aframax   Spot   N/A   N/A
Daytona   2011   115,200   Aframax   Spot   N/A   N/A
Belmar   2011   115,200   Aframax   Spot   N/A   N/A
                         

Drilling Rigs/Drillships:

                 
Unit   Year built/ or Scheduled Delivery   Redelivery   Operating Area   Backlog ($m)
                 
Leiv Eiriksson   2001   Q2 - 16   Norway   $340
Eirik Raude   2002   Q4 - 14   South Africa, Ivory Coast   $72
        Q3 - 15   Falkland Islands   $164
Ocean Rig Corcovado   2011   Q2 - 15   Brazil   $133
Ocean Rig Olympia   2011   Q3 - 15   Angola   $225
Ocean Rig Poseidon   2011   Q2 - 16   Angola   $476
Ocean Rig Mykonos   2011   Q1 - 15   Brazil   $106
Ocean Rig Mylos   2013   Q4 - 16   Brazil   $531
Ocean Rig Skyros   2013   Q4 - 14   Angola   $71
        Q3 - 21   Angola   $1,298
Ocean Rig Athena   2014   Q2 - 17   Angola   $686
Newbuildings                
Ocean Rig Apollo   Jan. 2015   Q1 - 18   Congo   $681
Ocean Rig Santorini   Jun. 2016   N/A   N/A   N/A
Ocean Rig TBN#1   Feb. 2017   N/A   N/A   N/A
Ocean Rig TBN#2   Jun. 2017   N/A   N/A   N/A
Total               $4.8 billion
                 
                 

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,  
    2013     2014     2013     2014  
Average number of vessels(1)     36.6       38.7       36.3       38.4  
Total voyage days for vessels(2)     3,326       3,453       6,566       6,791  
Total calendar days for vessels(3)     3,328       3,526       6,568       6,946  
Fleet utilization(4)     99.9 %     97.9 %     100 %     97.8 %
Time charter equivalent(5)   $ 12, 756     $ 12,064     $ 12,085     $ 12,801  
Vessel operating expenses (daily)(6)   $ 5,930     $ 6,602     $ 5,496     $ 6,466  
                                 
                                 
Tanker   Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2014     2013     2014  
Average number of vessels(1)     10       10       9.7       10  
Total voyage days for vessels(2)     910       910       1,758       1,810  
Total calendar days for vessels(3)     910       910       1,758       1,810  
Fleet utilization(4)     100 %     100 %     100 %     100 %
Time charter equivalent(5)   $ 10,004     $ 15,650     $ 11,348     $ 20,190  
Vessel operating expenses (daily)(6)   $ 6,371     $ 7,286     $ 7,704     $ 7,215  
                                 

(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 dry-docking days.
(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including dry-docking 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 and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from our vessels, the most directly comparable U.S. GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also 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. Please see below for a reconciliation of TCE rates to voyage revenues.
(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.

(In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days)

             
Drybulk   Three Months Ended June 30,     Six Months Ended June 30,  
     2013      2014      2013      2014  
Voyage revenues   $ 48,315     $ 49,616     $ 93,798     $ 103,024  
Voyage expenses     (5,890 )     (7,960 )     (14,448 )     (16,092 )
Time charter equivalent revenues   $ 42,425     $ 41,656     $ 79,350     $ 86,932  
Total voyage days for fleet     3,326       3,453       6,566       6,791  
Time charter equivalent TCE   $ 12,756     $ 12,064     $ 12,085     $ 12,801  
                 
Tanker   Three Months Ended June 30,     Six Months Ended June 30,  
    2013     2014     2013     2014  
Voyage revenues   $ 27,858     $ 36,624     $ 55,644     $ 79,938  
Voyage expenses     (18,754 )     (22,383 )     (35,694 )     (43,394 )
Time charter equivalent revenues   $ 9,104     $ 14,241     $ 19,950     $ 36,544  
Total voyage days for fleet     910       910       1,758       1,810  
Time charter equivalent TCE   $ 10,004     $ 15,650     $ 11,348     $ 20,190  
                                 
                                 
   
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,
 
    2013     2014     2013     2014  
                                 
REVENUES:                                
Voyage revenues   $ 76,173     $ 86,240     $ 149,442     $ 182,962  
Revenues from drilling contracts     259,835       441,433       506,279       802,197  
      336,008       527,673       655,721       985,159  
                                 
EXPENSES:                                
Voyage expenses     24,645       30,343       50,142       59,486  
Vessel operating expenses     25,533       29,907       49,643       57,970  
Drilling rigs operating expenses     116,981       183,089       237,740       334,604  
Depreciation and amortization     85,758       112,658       168,418       219,935  
Vessel impairments and other, net     1,443       -       76,783       -  
General and administrative expenses     37,187       41,544       73,434       90,635  
Legal settlements and other, net     5,405       (734 )     5,390       870  
                                 
Operating income / (loss)     39,056       130,866       (5,829 )     221,659  
                                 
OTHER INCOME / (EXPENSES):                                
Interest and finance costs, net of interest income     (56,008 )     (86,042 )     (112,870 )     (200,293 )
Gain/ (Loss) on interest rate swaps     23,082       (9,628 )     23,478       (12,403 )
Other, net     2,011       2,642       2,689       2,538  
Income taxes     (10,411 )     (15,142 )     (24,575 )     (23,933 )
Total other expenses, net     (41,326 )     (108,170 )     (111,278 )     (234,091 )
                                 
Net income/(loss)     (2,270 )     22,696       (117,107 )     (12,432 )
                                 
Net income attributable to Non controlling interests     (15,940 )     (28,330 )     (17,738 )     (27,753 )
                                 
Net loss attributable to Dryships Inc.   $
(18,210
)   $
(5,634
)   $
(134,845
)   $
(40,185
)
                                 
Loss per common share, basic and diluted   $ (0.05 )   $ (0.01 )   $ (0.35 )   $ (0.10 )
Weighted average number of shares, basic and diluted     382,657,244       413,097,655       382,657,244       411,363,240  
                                 
                                 
 
DryShips Inc.
 
Unaudited Condensed Consolidated Balance Sheets
 
(Expressed in Thousands of U.S. Dollars)   December 31, 2013   June 30, 2014
             
ASSETS            
             
  Cash, cash equivalents and restricted cash (current and non-current)   $ 739,312   $ 626,765
  Other current assets     494,887     611,391
  Advances for vessels and drillships under construction and related costs     679,008     577,069
  Vessels, net     2,249,087     2,242,604
  Drilling rigs, drillships, machinery and equipment, net     5,828,231     6,419,463
  Other non-current assets     133,167     143,723
  Total assets     10,123,692     10,621,015
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
             
  Total debt     5,568,003     5,954,644
  Total other liabilities     723,991     762,622
  Total stockholders' equity     3,831,698     3,903,749
  Total liabilities and stockholders' equity   $ 10,123,692   $ 10,621,015
             
             

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel impairments, dry-dockings and class survey costs 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. 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 loss to Adjusted EBITDA:

                         
(Dollars in thousands)   Three Months
Ended June 30,
2013
    Three Months
Ended June 30,
2014
    Six Months
Ended June 30,
2013
    Six Months
Ended June 30,
2014
 
                                 
Net loss   $ (18,210 )   $ (5,634 )   $ (134,845 )   $ (40,185 )
                                 
Add: Net interest expense     56,008       86,042       112,870       200,293  
Add: Depreciation and amortization     85,758       112,658       168,418       219,935  
Add: Dry-dockings and class survey costs     -       2,663       -       5,322  
Add: Impairment losses and other     1,443       -       76,783       -  
Add: Income taxes     10,411       15,142       24,575       23,933  
Add: Gain/(loss) on interest rate swaps     (23,082 )     9,628       (23,478 )     12,403  
Adjusted EBITDA   $ 112,328     $ 220,499     $ 224,323     $ 421,701  
                                 

Conference Call and Webcast: August 6, 2014

As announced, the Company's management team will host a conference call on Wednesday, August 6, 2014 at 9:00 a.m. Eastern 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) (0) 1452 542 301 (from outside the US). Please quote "DryShips."

A replay of the conference call will be available until August 13, 2014. 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 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, 1 of which is scheduled to be delivered to Ocean Rig during 2015, 1 of which is scheduled to be delivered to Ocean Rig during 2016 and 2 of which are scheduled to be delivered during 2017. DryShips owns a fleet of 39 drybulk carriers, comprising 13 Capesize, 24 Panamax and 2 Supramax with a combined deadweight tonnage of approximately 4.3 million tons, and 10 tankers, comprising 4 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.3 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 within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with such safe harbor legislation.

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 and drilling dayrates and drybulk vessel, drilling rig and drillship values, failure of a seller to deliver one or more drilling rigs, drillships or drybulk vessels, failure of a buyer to accept delivery of a drilling rig, drillship, or vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for drybulk commodities or oil, changes in demand that may affect attitudes of time charterers and customer drilling programs, scheduled and unscheduled drydockings and upgrades, changes in our operating expenses, including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations 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 U.S. Securities and Exchange Commission, including the Company's most recently filed Annual Report on Form 20-F.

Contact Information

  • Investor Relations / Media:

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