SOURCE: DryShips Inc.

DryShips Inc.

November 05, 2014 16:02 ET

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

ATHENS, GREECE--(Marketwired - Nov 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 third quarter ended September 30, 2014.

Third Quarter 2014 Financial Highlights

  • For the third quarter of 2014, the Company reported net income of $16.7 million, or $0.04 basic and diluted earnings per share.

Included in the third quarter 2014 results are:

  • Non-cash write offs and breakage costs associated with the full refinancing of Ocean Rig's $1.35 billion Senior Secured Credit Facility, totaling $22.0 million or $0.05 per share.

Excluding the above items, the Company would have reported net income of $29.8 million, or $0.07 per share. (1)

  • The Company reported Adjusted EBITDA of $300.2 million for the third quarter of 2014, as compared to $174.8 million for the third quarter of 2013. (2)

(1) The net result is adjusted for the minority interests of 40.69% not owned by DryShips Inc. common stockholders.
(2) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net income.

Recent Highlights

  • As of today, the Company has purchased on the open market approximately $152 million principal amount of 5% convertible notes. Proforma for all these purchases, the Company has $548 million principal amount of 5% convertible notes maturing on December 1, 2014.

  • On October 29, 2014, the Company successfully completed the offering of 250,000,000 shares of its common stock, par value $0.01 per share, at a price of $1.40 per share. As part of the offering, Mr. George Economou, the Company's Chairman, President and Chief Executive Officer, has purchased $80 million, or 57,142,000 shares, of common stock in the offering at the public offering price. Following this offering, Mr. George Economou has increased his ownership in DryShips to 16.9%.

  • On October 29, 2014, the Company signed definitive documentation for a senior secured credit facility with Nordea Bank for up to $170.0 million to refinance the existing indebtedness under the Company's $325.0 million Senior Credit Facility, which has a balance of $50.0 million as of October 31, 2014. This facility has a five year term and bears interest at LIBOR plus a margin and will be secured by the six vessels that currently secure the existing $325.0 million Senior Credit Facility, as well as three other currently unencumbered vessels.

    In conjunction with this refinancing we have entered into long-term contracts with a major capesize operator for five vessels for an average period of five years, including purchase options.

  • On October 15, 2014, Ocean Rigs' Board of Directors declared a quarterly cash dividend with respect to the quarter ended September 30, 2014, of $0.19 per common share, to shareholders of record as of October 31, 2014 and payable on or about November 11, 2014.

  • On October 14, 2014, Ocean Rig Partners LP, a subsidiary of Ocean Rig filed a registration statement on Form F-1 with the SEC relating to a possible initial public offering of units in a majority-owned master limited partnership.

  • On October 12, 2014, we executed a commitment letter with ABN AMRO Bank N.V., or ABN AMRO, for a secured bridge loan facility in an amount of $200 million. This short-term facility will be secured by shares of Ocean Rig's common stock owned by us. We expect to complete the final documentation well in advance of the maturity of the Convertible Senior Notes on December 1, 2014.

  • Ocean Rig has been awarded extensions of the drilling contracts for the Ocean Rig Corcovado and the Ocean Rig Mykonos by Petrobras for drilling offshore Brazil. The term of each extension is for 1,095 days with a total combined revenue backlog of over $1.1 billion, excluding reimbursement by Petrobras to the Company for contract related equipment upgrades. The new contracts will commence in direct continuation from the end of the current agreements with Petrobras, in the first and second quarter of 2015, respectively.

  • On August 24, 2014, the Company agreed with Jiangsu Rongsheng Heavy Industries to cancel the construction of our four newbuilding Ice class Panamax vessels, for which the Company had previously contracted. On September 2, 2014, the Company received in connection with the cancellation of these newbuilding contracts all installments previously paid to the shipyard of $11.6 million, plus interest.

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

"We are delighted to have achieved the refinancing of our convertible notes on December 1. Our recent successful equity offering raised $333.7 million in net proceeds for the Company. This equity offering, credit facilities from Nordea Bank and ABN AMRO and the unsecured credit line of $120 million from Ocean Rig covers the $700 million due outstanding.

"Our liquidity position on the shipping side has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which continue to perform above expectations for this time of the year. In addition, we expect a boost to our cash reserves from the recent dividend declared by Ocean Rig of which we expect to receive approximately $14.8 million on November 11, as well as from the excess of our financing sources outlined above over the underlying debt repayment. Insofar as the drybulk markets are concerned, the long awaited recovery in freight rates is happening and we believe this may lead to a sustainable recovery in charter rates through 2015. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has a large amount of spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.

"Turning to our offshore drilling interests, Ocean Rig continues to execute on its business plan. It has produced another record-breaking quarter of $104.3 million net income mainly as a result of 98.6% fleet-wide utilization. More recently, it has announced contract extensions in Brazil adding another $1.1 billion to its backlog taking its contracted revenue backlog to $5.5 billion over the next few years. We believe that while the market outlook has been less positive in recent weeks, talk of a market downturn is overblown and rates are still at profitable levels as evidenced by our recent fixture. 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 all its shareholders including Dryships."

Financial Review: 2014 Third Quarter

The Company recorded net income of $16.7 million, or $0.04 basic and diluted earnings per share, for the three-month period ended September 30, 2014, as compared to a net loss of $63.9 million, or $0.17 basic and diluted loss per share, for the three-month period ended September 30, 2013. Adjusted EBITDA(1) was $300.2 million for the third quarter of 2014, as compared to $174.8 million for the same period in 2013.

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $38.5 million for the three-month period ended September 30, 2014, as compared to $37.4 million for the three-month period ended September 30, 2013. For the tanker segment, net voyage revenues amounted to $19.2 million for the three-month period ended September 30, 2014, as compared to $14.5 million for the same period in 2013. For the offshore drilling segment, revenues from drilling contracts increased by $187.0 million to $515.5 million for the three-month period ended September 30, 2014, as compared to $328.5 million for the same period in 2013.

Total vessels', drilling rigs' and drillships' operating expenses and total depreciation and amortization increased to $226.3 million and to $113.6 million, respectively, for the three-month period ended September 30, 2014, from $155.6 million and $92.4 million, respectively, for the three-month period ended September 30, 2013. Total general and administrative expenses decreased to $48.4 million in the third quarter of 2014, from $54.1 million during the same period in 2013.

Interest and finance costs, net of interest income, amounted to $110.9 million for the three-month period ended September 30, 2014, compared to $131.0 million for the three-month period ended September 30, 2013.

The Time Charter Equivalent(2), or TCE, rate for our drybulk fleet was $10,875 per day per vessel in the three month period ended September 30, 2014, as compared to $10,796 per day per vessel in the corresponding period of 2013. The Time Charter Equivalent, or TCE, rate for our tanker fleet was $20,901 per day per vessel in the three month period ended September 30, 2014 which is a significant improvement compared to the $15,802 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 October 31, 2014:

                         
 
 
 
 
Year
Built
 
 
 
DWT
 
 
 
Type
 
 
Gross rate
Per day
 
 
Redelivery
Earliest
 
 
 
Latest
Drybulk fleet                        
                         
Capesize:                        
Rangiroa   2013   206,026   Capesize   $23,000   May-18   Dec-23
Negonego   2013   206,097   Capesize   $21,500   Mar-20   Feb-28
Fakarava   2012   206,152   Capesize   $25,000   Sept-15   Sept-20
Raiatea   2011   179,078   Capesize   $23,500   Oct-19   Dec-19
Mystic   2008   170,040   Capesize   $52,310   Aug-18   Dec-18
Robusto   2006   173,949   Capesize   $23,500   Jul-19   Sept-19
Cohiba   2006   174,234   Capesize   $23,500   Sep-19   Nov-19
Montecristo   2005   180,263   Capesize   $23,500   Jul-19   Sep-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   $23,500   Sep-19   Nov-19
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
                         
Tanker fleet                        
Suezmax:                        
Bordeira   2013   158,513   Suezmax   Spot   N/A   N/A
Petalidi   2012   158,532   Suezmax   Spot   N/A   N/A
Lipari   2012   158,425   Suezmax   Spot   N/A   N/A
Vilamoura   2011   158,622   Suezmax   Spot   N/A   N/A
Aframax:                        
Alicante   2013   115,708   Aframax   Spot   N/A   N/A
Mareta   2013   115,796   Aframax   Spot   N/A   N/A
Calida   2012   115,812   Aframax   Spot   N/A   N/A
Saga   2011   115,738   Aframax   Spot   N/A   N/A
Daytona   2011   115,896   Aframax   Spot   N/A   N/A
Belmar   2011   115,904   Aframax   Spot   N/A   N/A
                         
                         

Drilling Rigs/Drillships:

                 
Unit   Year built/ or Scheduled Delivery   Redelivery   Operating Area   Backlog ($m)
                 
Leiv Eiriksson   2001   Q4 - 16   Norwegian Continental Shelf   $401
Eirik Raude   2002   Q1 - 15   Ivory Coast   36
        Q4 - 15   Falkland Islands   164
Ocean Rig Corcovado   2011   Q2 - 15   Brazil   88
        Q2--18   Brazil   567
Ocean Rig Olympia (1)   2011   Q3 - 15   Angola   170
Ocean Rig Poseidon   2011   Q2 - 16   Angola   411
Ocean Rig Mykonos   2011   Q1 - 15   Brazil   63
        Q1-- 18   Brazil   565
Ocean Rig Mylos   2013   Q3 - 16   Brazil   428
Ocean Rig Skyros   2013   Q4 - 14   Angola   25
        Q3 - 21   Angola   1,298
Ocean Rig Athena   2014   Q2 - 17   Angola   627
Newbuildings                
Ocean Rig Apollo   Jan. 2015   Q2 - 18   West Africa   692
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               $5.5 billion
                 

(1) An addendum has been signed with TEPA to extend the validity of the fixed price option at current rates of $595,000 per day, subject to certain conditions such as rig availability.

   
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,
 
    2013     2014     2013     2014  
Average number of vessels(1)     38.0       39.0       36.9       38.6  
Total voyage days for vessels(2)     3,464       3,543       10,030       10,334  
Total calendar days for vessels(3)     3,496       3,588       10,064       10,534  
Fleet utilization(4)     99.1 %     98.7 %     99.7 %     98.1 %
Time charter equivalent(5)   $ 10,796     $ 10,875     $ 11,640     $ 12,141  
Vessel operating expenses (daily)(6)   $ 5,904     $ 6,013     $ 5,638     $ 6,311  
                                 
                                 
Tanker   Three Months Ended September 30,     Nine Months Ended September 30,  
    2013     2014     2013     2014  
Average number of vessels(1)     10.0       10.0       9.8       10.0  
Total voyage days for vessels(2)     920       920       2,678       2,730  
Total calendar days for vessels(3)     920       920       2,678       2,730  
Fleet utilization(4)     100 %     100 %     100 %     100 %
Time charter equivalent(5)   $ 15,802     $ 20,901     $ 12,879     $ 20,430  
Vessel operating expenses (daily)(6)   $ 6,624     $ 6,900     $ 7,333     $ 7,109  
                                 

(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 September 30,     Nine Months Ended September 30,  
    2013     2014     2013     2014  
Voyage revenues   $ 44,206     $ 48,570     $ 138,003     $ 151,593  
Voyage expenses     (6,808 )     (10,040 )     (21,256 )     (26,131 )
Time charter equivalent revenues   $ 37,398     $ 38,530     $ 116,747     $ 125,462  
Total voyage days for fleet     3,464       3,543       10,030       10,334  
Time charter equivalent TCE   $ 10,796     $ 10,875     $ 11,640     $ 12,141  
                                 
                                 
Tanker   Three Months Ended September 30,     Nine Months Ended September 30,  
    2013     2014     2013     2014  
Voyage revenues   $ 32,222     $ 37,870     $ 87,867     $ 117,809  
Voyage expenses     (17,684 )     (18,641 )     (53,378 )     (62,036 )
Time charter equivalent revenues   $ 14,538     $ 19,229     $ 34,489     $ 55,773  
Total voyage days for fleet     920       920       2,678       2,730  
Time charter equivalent TCE   $ 15,802     $ 20,901     $ 12,879     $ 20,430  
                                 
                                 
   
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,
 
    2013     2014     2013     2014  
                                 
REVENUES:                                
Voyage revenues   $ 76,428     $ 86,440     $ 225,870     $ 269,402  
Revenues from drilling contracts     328,513       515,514       834,792       1,317,711  
      404,941       601,954       1,060,662       1,587,113  
                                 
EXPENSES:                                
Voyage expenses     24,492       28,681       74,634       88,167  
Vessel operating expenses     26,735       27,921       76,378       85,891  
Drilling rigs operating expenses     128,906       198,413       366,646       533,017  
Depreciation and amortization     92,448       113,603       260,866       333,538  
Vessel impairments and other, net     -       1,307       76,783       1,307  
General and administrative expenses     54,144       48,441       127,578       139,076  
Legal settlements and other, net     (224 )     571       5,166       1,441  
                                 
Operating income     78,440       183,017       72,611       404,676  
                                 
OTHER INCOME / (EXPENSES):                                
Interest and finance costs, net of interest income     (130,976 )     (110,903 )     (243,846 )     (311,196 )
Gain/ (loss) on interest rate swaps     (11,638 )     4,558       11,840       (7,845 )
Other, net     2,039       292       4,728       2,830  
Income taxes     (10,524 )     (17,940 )     (35,099 )     (41,873 )
Total other expenses, net     (151,099 )     (123,993 )     (262,377 )     (358,084 )
                                 
Net income/(loss)     (72,659 )     59,024       (189,766 )     46,592  
                                 
Net income/(loss) attributable to Non controlling interests     8,780       (42,354 )     (8,958 )     (70,107 )
                                 
Net income/ (loss) attributable to Dryships Inc.   $
(63,879
)   $
16,670
    $
(198,724
)   $
(23,515
)
                                 
Earnings/ (loss) per common share, basic and diluted   $ (0.17 )   $ 0.04     $ (0.52 )   $ (0.06 )
Weighted average number of shares, basic and diluted     382,809,418       413,249,829       382,708,526       411,999,014  
                                 
                                 
 
DryShips Inc.
 
Unaudited Condensed Consolidated Balance Sheets
 
(Expressed in Thousands of U.S. Dollars)   December 31, 2013   September 30, 2014
             
ASSETS            
             
  Cash, cash equivalents and restricted cash (current and non-current)   $ 739,312   $ 587,685
  Other current assets     494,887     638,473
  Advances for vessels and drillships under construction and related costs     679,008     593,758
  Vessels, net     2,249,087     2,211,184
  Drilling rigs, drillships, machinery and equipment, net     5,828,231     6,339,607
  Other non-current assets     133,167     135,333
  Total assets     10,123,692     10,506,040
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
  Total debt     5,568,003     5,923,998
  Total other liabilities     723,991     627,644
  Total stockholders' equity     3,831,698     3,954,398
  Total liabilities and stockholders' equity   $ 10,123,692   $ 10,506,040
             
 

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, vessel impairments and other, 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
September 30, 2013
    Three Months Ended
September 30, 2014
    Nine Months Ended
September 30, 2013
    Nine Months Ended
September 30, 2014
 
                                 
Net income/ (loss) attributable to Dryships Inc   $ (63,879 )   $ 16,670     $ (198,724 )   $ (23,515 )
                                 
Add: Net interest expense     130,976       110,903       243,846       311,196  
Add: Depreciation and amortization     92,448       113,603       260,866       333,538  
Add: Dry-dockings and class survey costs     1,919       1,984       2,217       7,306  
Add: Impairment losses and other     -       1,307       76,783       1,307  
Add: Income taxes     10,524       17,940       35,099       41,873  
Add: Gain/(loss) on interest rate swaps     11,638       (4,558 )     (11,840 )     7,845  
Add: Net income/(loss) attributable to Non controlling interests     (8,780 )     42,354       8,958       70,107  
Adjusted EBITDA   $ 174,846     $ 300,203     $ 417,205     $ 749,657  
                                 
                                 

Conference Call and Webcast: November 6, 2014

As announced, the Company's management team will host a conference call on Thursday, November 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 November 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