SOURCE: DryShips Inc.

DryShips Inc.

November 14, 2012 17:34 ET

DryShips Inc. Reports Financial and Operating Results for the Third Quarter 2012

ATHENS, GREECE--(Marketwire - Nov 14, 2012) - DryShips Inc. (NASDAQ: DRYS), 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 third quarter ended September 30, 2012.

Third Quarter 2012 Financial Highlights

  • For the third quarter of 2012, the Company reported a net loss of $51.3 million, or $0.13 basic and diluted loss per share.

Included in the third quarter 2012 results are:

  • Costs associated with the 10-year class survey for the Eirik Raude of $16.8 million, or $0.04 per share;
  • Non-cash write offs associated with the full repayment of the $1.04 billion senior secured credit facility totaling $18.3 million, or $0.05 per share; and
  • Non-cash mark-to-market gains on interest rate swaps totaling $3.7 million or $0.01 per share.

Excluding the above items, the Company's net results would have amounted to a net loss of $33.3 million, or $0.09 per share. (1)

The Company reported Adjusted EBITDA of $141.0 million for the third quarter of 2012, as compared to $172.9 million for the third quarter of 2011. (2)

Recent Events

  • Pursuant to Ocean Rig's previous announcements related to potential contract awards for the Ocean Rig Poseidon and Ocean Rig Athena, Ocean Rig has been awarded two three-year contracts for each rig for drilling in Angola from two different major international oil companies.

  • On October 24, 2012, the Company entered into a secured credit facility with ABN AMRO, Korea Development Bank and Korea Trade Insurance Corporation, or KSURE, for a $107.7 million senior secured term loan facility to partially finance our tankers, Alicante, Mareta and Bordeira. The term of the facility is 6 years and the repayment profile is 12 years.

  • As of September 30, 2012, the Company was not in compliance with certain loan-to-value ratios contained in certain of its original loan agreements under which a total of $157.3 million was outstanding as of that date. As a result, the Company may be required to prepay indebtedness or provide additional collateral to its lenders in the form of cash amounting to $77.2 million, in order to comply with these ratios.

  • On September 27, 2012, we entered into supplemental agreements under our $518.8 million senior loan facilities and $110.0 million junior loan facilities, each dated March 31, 2006, as amended. Under these supplemental agreements, we agreed to pledge 7,800,000 common shares of Ocean Rig in favor of the lending syndicates in order to remedy the value maintenance clause shortfall.

  • On September 20, 2012, Ocean Rig's wholly-owned subsidiary, Drill Rigs Holdings Inc., issued $800.0 million of aggregate principal amount of 6.50% Senior Secured Notes due 2017 offered in a private offering, resulting in net proceeds of approximately $782.0 million. Ocean Rig used a portion of the net proceeds of the sale of the notes to repay the full amount outstanding under its $1.04 billion senior secured credit facility.

  • In July 2012, Ocean Rig formally commenced syndication of a $1.35 billion senior secured term loan facility to partially finance our drillship newbuilding hulls Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. This facility will be led by DNB and Nordea and is expected to have a commercial tranche and two export credit agency, or ECA, tranches. Ocean Rig has received conditional commitments for the commercial tranche and one of the ECA tranches, and expects to finalize this transaction during the first quarter of 2013.

(1) The net result is adjusted for the minority interests of 35% not owned by DryShips Inc. common stockholders.

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

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

"The shipping market continues to be severely depressed. Both tanker and drybulk spot charter rates have been at historic low levels -- well below cash breakeven rate -- for some time. Unfortunately this is coming at a time when our lucrative legacy charters continue to expire on a staggered basis. We have contract coverage of 33% and 22% of the calendar days for 2013 and 2014, respectively.

The deteriorating economic situation in Europe, together with BASEL III capital requirements, have led to a number of shipping banks with large portfolios to exit the sector. High profile restructurings and payment defaults have started to take their toll on the few remaining lenders. This comes at a time when we have significant capital expenditures to finance our drybulk and tanker newbuilding programs. The lack of liquidity is further exacerbated by falling assets values, which continued to decline during the quarter.

The optimization of our drybulk and tanker newbuilding programs is our top priority right now and we are in discussions with the shipyards in this respect to reduce and prolong our CAPEX program. We are in a challenging environment so these negotiations will be difficult and drawn out but we believe a win-win solution could be found.

Our shareholding in Ocean Rig UDW Inc. provides some flexibility in addressing the capital needs of our shipping segment. For example, we have recently pledged (and will continue to pledge) some of our Ocean Rig shares to our banks to remedy covenant breaches. We continue to be bullish about the prospects for Ocean Rig. The backlog currently stands at $4.5 billion over three years and provides Ocean Rig with substantial cash flow visibility and growth. Given strong industry fundamentals and the fact that there are very few ultra-deepwater units available in 2013, we expect to further increase our already substantial backlog by entering into long-term contracts for our two remaining units available in 2013. We continue to build on the Ocean Rig story and have positioned the company to build further on this strong platform to become the preferred contractor in the ultra-deepwater sector."

Financial Review: 2012 Third Quarter

The Company recorded a net loss of $51.3 million, or $0.13 basic and diluted loss per share, for the three-month period ended September 30, 2012, as compared to a net income of $25.0 million, or $0.07 basic and diluted earnings per share, for the three-month period ended September 30, 2011. Adjusted EBITDA was $141.0 million for the third quarter of 2012, as compared to $172.9 million for the same period in 2011.(1)

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $41.1 million for the three-month period ended September 30, 2012, as compared to $85.5 million for the three-month period ended September 30, 2011. For the offshore drilling segment, revenues from drilling contracts increased by $59.7 million to $285.7 million for the three-month period ended September 30, 2012, as compared to $226.0 million for the same period in 2011. For the tanker segment, net voyage revenues amounted to $9.0 million for the three-month period ended September 30, 2012, as compared to $3.3 million for the same period in 2011.

Total vessels', drilling rigs' and drillships' operating expenses and total depreciation and amortization increased to $181.1 million and $84.6 million, respectively, for the three-month period ended September 30, 2012, from $105.7 million and $71.0 million, respectively, for the three-month period ended September 30, 2011. Total general and administrative expenses increased to $35.3 million in the third quarter of 2012 from $28.4 million during the comparative period in 2011.

Interest and finance costs, net of interest income, amounted to $51.9 million for the three-month period ended September 30, 2012, compared to $36.0 million for the three-month period ended September 30, 2011.

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

Fleet List

The table below describes our fleet profile as of November 14, 2012:

                       
  Year           Gross rate   Redelivery 
  Built   DWT   Type   Per day   Earliest   Latest
Drybulk fleet                      
                       
Capesize:                      
Mystic 2008   170,040   Capesize   $52,310   Aug-18   Dec-18
Robusto 2006   173,949   Capesize   $26,000   Aug-14   Dec-14
Cohiba 2006   174,234   Capesize   $26,250   Oct-14   Feb-15
Montecristo 2005   180,263   Capesize   $23,500   May-14   Oct-14
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   $10,000   Jun-13   Aug-13
Alameda 2001   170,662   Capesize   $27,500   Nov-15   Jan-16
Capri 2001   172,579   Capesize   $10,000   Nov-13   Mar-14
Fakarava 2012   206,000   Capesize   $25,000   Sept-15   Sept-15
                       
Panamax:                      
Raraka 2012   76,037   Panamax   $13,150   Feb-13   Apr-13
Woolloomooloo 2012   76,064   Panamax   $13,150   Jan-13   Mar-13
Amalfi 2009   75,206   Panamax   $39,750   Jul-13   Sep-13
Rapallo 2009   75,123   Panamax   Spot   N/A   N/A
Catalina 2005   74,432   Panamax   $40,000   Jun-13   Aug-13
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   Spot   N/A   N/A
Bargara 2002   74,832   Panamax   Spot   N/A   N/A
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   Spot   N/A   N/A
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   $12,250   Dec-12   Feb-13
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
         




Gross rate
 




Redelivery
  Built   DWT   Type   Per day   Earliest   Latest
Newbuildings                      
Newbuilding VLOC #2 2013   206,000   Capesize   Spot   N/A   N/A
Newbuilding VLOC #3 2013   206,000   Capesize   $21,500   Jan-20   Jan-27
Newbuilding VLOC #4 2013   206,000   Capesize   Spot   N/A   N/A
Newbuilding VLOC #5 2014   206,000   Capesize   Spot   N/A   N/A
Newbuilding Capesize 1 2013   176,000   Capesize   Spot   N/A   N/A
Newbuilding Capesize 2 2013   176,000   Capesize   Spot   N/A   N/A
Newbuilding Ice -class Panamax 1 2014   75,900   Panamax   Spot   N/A   N/A
Newbuilding Ice -class Panamax 2 2014   75,900   Panamax   Spot   N/A   N/A
Newbuilding Ice -class Panamax 3 2014   75,900   Panamax   Spot   N/A   N/A
Newbuilding Ice -class Panamax 4 2014   75,900   Panamax   Spot   N/A   N/A
Tanker fleet                      
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
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
Newbuildings                      
Blanca 2013   158,300   Suezmax   Spot   N/A   N/A
Bordeira 2013   158,300   Suezmax   Spot   N/A   N/A
Esperona 2013   158,300   Suezmax   Spot   N/A   N/A
Alicante 2013   115,200   Aframax   Spot   N/A   N/A
Mareta 2013   115,200   Aframax   Spot   N/A   N/A
                       

Drilling Rigs/Drillships:

                 
Unit   Year built   Redelivery   Operating area   Backlog ($m)
Leiv Eiriksson   2001   Q4 - 12   Falkland Islands   $17
Leiv Eiriksson   2001   Q1 - 16   North Sea   $653
Eirik Raude   2002   Q1 - 13   West Africa   $75
Ocean Rig Corcovado   2011   Q2 - 15   Brazil   $420
Ocean Rig Olympia   2011   Q3 - 15   Angola   $580
Ocean Rig Poseidon   2011   Q2 - 13   Africa   $85
Ocean Rig Poseidon   2011   Q2 - 16   Angola   $781
Ocean Rig Mykonos   2011   Q1 - 15   Brazil   $390
Newbuildings                
Ocean Rig Mylos   2013   Q3 - 16   Brazil   $677
Ocean Rig Skyros   2013   N/A   N/A   N/A
Ocean Rig Athena   2013   Q1 - 17   Angola   $745
Newbuilding TBN   2015   N/A   N/A   N/A
Total               $4,423
                 

Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited)

(Dollars in thousands, except average daily results)

       
Drybulk Three Months Ended
 September 30,
  Nine Months Ended
September 30,
  2011   2012   2011   2012
Average number of vessels(1) 35.2   35.2   35.7   35.6
Total voyage days for vessels(2) 3,197   3,233   9,619   9,715
Total calendar days for vessels(3) 3,240   3,241   9,743   9,744
Fleet utilization(4) 98.7%   99.8%   98.7%   99.7%
Time charter equivalent(5) $26,732   $12,727   $27,412   $17,719
Vessel operating expenses (daily)(6) $5,844   $5,248   $6,020   $5,405
               
Tanker Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2011   2012   2011   2012
Average number of vessels(1) 3.0   7.0   2.21   6.0
Total voyage days for vessels(2) 276   644   602   1,649
Total calendar days for vessels(3) 276   644   602   1,649
Fleet utilization(4) 100%   100%   100%   100%
Time charter equivalent(5) $11,880   13,978   $14,081   $14,959
Vessel operating expenses (daily)(6) $7,725   6,205   $10,169   $7,357
               

(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 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
September 30,
  Nine Months Ended
 September 30,
  2011   2012   2011   2012
Voyage revenues $88,613   $46,881   $278,741   $186,388
Voyage expenses (3,150)   (5,733)   (15,062)   (14,244)
Time charter equivalent revenues $85,463   $41,148   $263,679   $172,144
Total voyage days for fleet 3,197   3,233   9,619   9,715
Time charter equivalent (TCE) rate $26,732   $12,727   $27,412   $17,719
               
Tanker Three Months Ended
 September 30,
  Nine Months Ended
September 30,
  2011   2012   2011   2012
Voyage revenues $3,400   $11,096   $8,748   $28,733
Voyage expenses (121)   (2,094)   (271)   (4,066)
Time charter equivalent revenues $3,279   $9,002   $8,477   $24,667
Total voyage days for fleet 276   644   602   1,649
Time charter equivalent (TCE) rate $11,880   $13,978   $14,081   $14,959
               
               
               
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
September 30,
    Nine Months Ended
September 30,
 
    2011     2012     2011     2012  
                                 
REVENUES:                                
Voyage revenues   $ 92,013     $ 57,977     $ 287,489     $ 215,121  
Revenues from drilling contracts     226,036       285,662       461,991       712,152  
      318,049       343,639       749,480       927,273  
                                 
EXPENSES:                                
Voyage expenses     3,271       7,827       15,333       18,310  
Vessel operating expenses     21,066       21,006       64,772       64,802  
Drilling rigs operating expenses     84,639       160,098       188,777       390,490  
Depreciation and amortization     70,980       84,580       192,001       250,615  
Vessel impairments and other, net     1,893       38       89,637       1,001  
General and administrative expenses     28,422       35,331       86,592       106,475  
Legal settlements and other     -       (1,842 )     -       (3,448 )
                                 
Operating income     107,778       36,601       112,368       99,028  
                                 
OTHER INCOME / (EXPENSES):                                
Interest and finance costs, net of interest income     (35,985 )     (51,923 )     (80,646 )     (152,468 )
Loss on interest rate swaps     (31,466 )     (27,777 )     (71,242 )     (49,491 )
Other, net     3,777       (1,177 )     7,588       1,399  
Income taxes     (7,778 )     (10,975 )     (17,556 )     (32,603 )
Total other expenses     (71,452 )     (91,852 )     (161,856 )     (233,163 )
                                 
Net income/(loss)     36,326       (55,251 )     (49,488 )     (134,135 )
                                 
Net income/ (loss) attributable to Non controlling interests    
(11,300
)    
3,980
     
(13,811
)    
17,207
 
                                 
Net income/(loss) attributable to Dryships Inc.   $ 25,026     $ (51,271 )   $ (63,299 )   $ (116,928 )
                                 
Earnings/(Loss) per common share, basic and diluted   $ 0.07     $ (0.13 )   $ (0.19 )   $ (0.31 )
Weighted average number of shares, basic and diluted    
355,764,523
      380,152,244      
348,286,721
      380,152,244  
                                 
                                 
                                 
Dryships Inc.
 
Unaudited Condensed Consolidated Balance Sheets
 
(Expressed in Thousands of U.S. Dollars)   December 31, 2011   September 30, 2012
             
ASSETS            
             
  Cash and restricted cash (current and non-current)   $ 656,709   $ 986,794
  Other current assets     246,169     303,520
  Advances for vessels and rigs under construction and acquisitions     1,027,889     1,025,520
  Vessels, net     1,956,270     2,087,628
  Drilling rigs, drillships, machinery and equipment, net     4,587,916     4,486,096
  Other non-current assets     146,736     119,421
  Total assets     8,621,689     9,008,979
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
  Total debt     4,241,835     4,453,519
  Total other liabilities     441,192     535,938
  Total stockholders' equity     3,938,662     4,019,522
  Total liabilities and stockholders' equity   $ 8,621,689   $ 9,008,979
             

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents net income 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 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 September 30, 2011   Three Months Ended September 30, 2012     Nine Months
Ended September 30, 2011
    Nine Months
Ended September 30, 2012
 
                         
Net income/(loss) $ 25,026   (51,271 )   (63,299 )   $ (116,928 )
                         
Add: Net interest expense   35,985   51,923     80,646       152,468  
Add: Depreciation and amortization   70,980   84,580     192,001       250,615  
Add: Impairment losses   -   -     112,104       -  
Add: Dry-dockings and class survey costs   1,700   17,033     21,412       22,763  
Add: Income taxes   7,778   10,975     17,556       32,603  
Add: Loss on interest rate swaps   31,466   27,777     71,242       49,491  
Adjusted EBITDA $ 172,935   141,017     431,662     $ 391,012  
                         

Conference Call and Webcast: November 15, 2012

As announced, the Company's management team will host a conference call, on Thursday, November 15, 2012 at 9:00 a.m. Eastern Standard 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 November 22, 2012. 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 10 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 8 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013 and 1 is scheduled for delivery during 2015. DryShips owns a fleet of 46 drybulk carriers (including newbuildings), comprising 12 Capesize, 28 Panamax, 2 Supramax and 4 newbuilding Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of approximately 5.1 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 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.

Contact Information

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