SOURCE: DryShips Inc.

May 19, 2008 16:05 ET

DryShips Inc. Reports First Quarter 2008 Results

ATHENS, GREECE--(Marketwire - May 19, 2008) - DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes, today announced its unaudited financial and operating results for the quarter ended March 31, 2008.

Financial Highlights

--  The Company reported Net Income of $176.3 million or $4.61 per share,
    for the first quarter of 2008.  Included in the first quarter results is a
    capital gain on the sale of one vessel of $24.4 million or $0.64 per share
    and a non-cash loss of $6.1 million or $0.16 per share associated with the
    valuation of interest rate swaps.  Excluding these items Net Income would
    amount to $158.0 million or $4.13 per share.
--  For the first quarter of 2008 the Company reported EBITDA(1),
    excluding vessel gains and non-cash items, of $201.4 million.
--  In April 2008 the Company declared and paid its twelfth consecutive
    quarterly cash dividend of $0.20 per common share.
    

George Economou, the Company's Chairman and Chief Executive Officer of DryShips Inc., commented:

"I am pleased to report another quarter with very strong operational and financial results. We remain confident in the positive fundamentals of the dry bulk market. We have continued with our fleet renewal and expansion strategy aimed to replace older tonnage with younger and larger vessels, thereby expanding and enhancing the quality of earnings of our fleet for the longer term. Based on the sales and purchase activity we have concluded to date, by the end of the year our fleet will include 47 vessels, including 7 newbuildings, with an average age of 7 years, considerably lower than the industry average of 13 years. With our modern, large and versatile fleet, we believe we are strategically positioned to continue taking advantage of the strong freight rate environment.

I am also particularly excited with the implementation of our strategic vision to create a leading presence in the ultra deep water drilling (UDW) market and to take advantage of the extremely positive fundamentals of that sector. The acquisition of Ocean Rig, which already operates two UDW rigs, and the agreement to construct two state of the art drillships create a significant platform for our foray into this sector. As we have mentioned before, we intend to spin off this business unit to our shareholders through a U.S. listing within the next 12 months.

In the short period of about three years since we became public in February 2005, DryShips has come a long way creating significant value for our shareholders. Our stock price has risen from $18 dollars at the time of the IPO to $110.74 as of the closing of last Friday. We are the largest publicly listed Drybulk shipping company in the US and we are in the process of creating a premiere ultra deep water drilling company with significant market presence in that sector. We remain committed to enhancing shareholder value and deliver superior results."

First Quarter 2008 Results

For the first quarter ended March 31, 2008, Net Revenues (Voyage Revenues less Voyage Expenses) amounted to $217.9 million as compared to $81.4 million for the first quarter ended March 31, 2007. Operating Income was $194.5 million for the quarter ended March 31, 2008, as compared to $78.6 million for the quarter ended March 31, 2007. Net Income for the first quarter ended March 31, 2008 was $176.3 million or $4.61 Earnings Per Share (EPS) calculated on 38,213,975 weighted average basic and diluted shares outstanding as compared to $67.8 million or $1.91 Earnings Per Share (EPS) calculated on 35,490,097 million weighted average basic and diluted shares outstanding for the quarter ended March 31, 2007. EBITDA for the first quarter of 2008 was $219.7 million as compared to $94.6 million in the quarter ended March 31, 2007.(1)

An average of 38.3 vessels were owned and operated during the first quarter of 2008, earning an average Time Charter Equivalent, or TCE, rate of $63,127 per day as compared to an average of 32.1 vessels owned and operated during the first quarter of 2007 earning an average TCE rate of $28,930 per day.

Dry-dock related expenses

During the first quarter of 2008, one vessel was drydocked for a cost of $0.3 million.

During the first quarter of 2008, the Company changed the method of accounting for dry-docking costs from the deferral method to the direct expense method under which related costs are expensed as incurred.

Capitalization

On March 31, 2008, debt to total capitalization (debt, net of deferred financing fees and stockholders equity) was 46.40% and net debt (total debt less cash and cash equivalents) to total capitalization (total debt less cash and cash equivalents and stockholders equity) was 30.12%. As of March 31, 2008, the Company had total cash and cash equivalents of $671.0 million.

(1) Please see later in this release for a reconciliation of EBITDA to net cash provided by Operating activities.

Financing activities

On February 2008, the Company entered into supplemental agreement to amend its existing facility with HSH Nordbank. Pursuant to the supplemental agreement the lender released its security interest over and relating to certain of the Company's vessels participating in the loan and gave its consent to the borrower's incurrence of additional financial indebtedness with other financial institutions.

On March 2008, the Company entered into a loan agreement in an amount of up to $130.0 million with Piraeus Bank. The vessels MV Lacerta, MV Menorca, MV Toro and MV Paragon were pledged as security for this new loan. The loan bears interest at LIBOR plus a margin and is repayable in twenty-eight variable quarterly installments through December 2014.

In April 2008, the Company concluded a loan for $90.0 million with Dresdner Bank in order to partly finance the MV Mystic. The loan bears interest at LIBOR plus a margin is repayable in three consecutive semi annual installments of $10.0 million each and eleven consecutive semi annual installments of $3.0 million plus a balloon payment of $27.0 million payable together with the last installment.

In May 2008, the Company concluded a loan for $125.0 million with Deutsche Schiffsbank in order to partly finance the acquisition cost of vessels MV Capri and MV Positano. The loan bears interest at LIBOR plus a margin is repayable in eight consecutive quarterly installments of $6.5 million followed by twenty four consecutive quarterly installments of $2.3 million plus a balloon payment of $19.0 million payable together with the last installment.

On May 9, 2008, the Company concluded a loan agreement for $800.0 million with Nordea Bank in order to finance the acquisition cost of the Ocean Rig shares and to refinance prior debt obtained to finance the purchase price of the shares acquired as of December 31, 2007.

As of March 31, 2008, the Company had a total of $1,344 million in debt outstanding under its credit facilities with several institutions.

Fleet Developments

Deliveries - New Vessels

On January 29, 2008, the Company took delivery of the vessel MV Avoca, a 2004 built secondhand 76,500 dwt Panamax drybulk carrier which it had agreed to acquire on July 26, 2007 for $70.2 million.

On April 8, 2008, the Company took delivery of the vessel MV Conquistador, a 2000 built secondhand 75,607 dwt Panamax drybulk carrier, which it had agreed to acquire on November 29, 2007, for a purchase price of $85.0 million.

On May 15, 2008, the Company took delivery of the vessel MV Capri a 2001 built secondhand 172,579 dwt Capesize drybulk carrier which it had agreed to acquire on November 13, 2007, for a purchase price of $152.3 million.

Deliveries - Sold Vessels

On February 25, 2008, the MV Matira, a 1994 built 45,863 dwt Handymax drybulk carrier, was delivered to her new owners for a purchase price of $46.5 million. The Company realized a gain of $24.4 million which was recognized in the first quarter of 2008.

On April 10, 2008, the MV Netadola, a 1993 built 149,475 dwt Capesize drybulk carrier, was delivered to her new owners for a purchase price of $93.9 million. The Company realized a gain of $63.5 million, which will be recognized in the second quarter of 2008.

Acquisitions

On March 12, 2008, the Company agreed to acquire the MV Positano, a 2000 built second-hand 73,288 dwt Panamax drybulk carrier, delivery of which is expected during the second quarter of 2008 for an aggregate price of approximately $72.0 million.

On April 14, 2008, the Company agreed to acquire the MV Sorento, a 2004 built second-hand 76,500 dwt Panamax drybulk carrier, delivery of which is expected during the third quarter of 2008 for an aggregate price of approximately $86.7 million.

On April 30, 2008, the Company agreed to acquire the MV Flecha, a 2004 built second-hand 170,012 dwt Capesize drybulk carrier, delivery of which is expected during the third quarter of 2008 for an aggregate price of approximately $158.0 million.

On April 30, 2008, the Company agreed to acquire the MV Daytona, a 177,000 dwt Capesize drybulk carrier, delivery of which is expected during the fourth quarter of 2008 for an aggregate price of approximately $153.0 million. The vessel is currently under construction.

Vessel Disposals

On March 13, 2008 the Company entered into an agreement to sell the MV Lanzarote, a 1996 built, 73,008 dwt Panamax drybulk carrier, to unaffiliated third party for a price of $65.0 million. The Company expects to realize a gain of approximately $37.2 million which will be recognized in the second quarter of 2008.

On March 15, 2008 the Company entered into an agreement to sell the MV Lacerta, a 1994 built, 71,862 dwt Panamax drybulk carrier, to unaffiliated third party for a price of $55.5 million. The Company expects to realize a gain of approximately $45.2 million which will be recognized in the fourth quarter of 2008.

On April 14, 2008, the Company entered into an agreement to sell the MV Waikiki, a 1995 built second-hand 75,473 dwt Panamax drybulk carrier for a price of approximately $63.0 million. The Company expects to realize a gain of approximately $37.7 million which will be recognized in the third quarter of 2008.

On April 14, 2008, the Company entered into an agreement to sell the MV Solana, a 1995 built 75,100 dwt Panamax drybulk carrier, for a price of approximately $63.0 million. The Company expects to realize a gain of approximately $29.9 million which will be recognized in the third quarter of 2008.

Gains on Vessel Disposals

In the first quarter of 2008 the Company recognized an aggregate gain on vessel disposals of $24.4 million or $0.64 per share. For the remainder of 2008 with known sales as of today the Company expects to recognize capital gain of $213.5 million.

Dividend Payment

In April 2008, DryShips declared and paid its twelfth consecutive quarterly cash dividend of $0.20 per common share.

As of March 31, 2008, the Company has a total of 41,440,097 shares of common stock outstanding.

Acquisition of Ocean Rig ASA

On May 14, 2008, we submitted a mandatory offer for 100% of the remaining outstanding shares of Ocean Rig ASA which has been filed with the Oslo Stock Exchange. Through our subsidiary Primelead Limited we own 128,035,373 shares or 75.1% of the shares and votes in Ocean Rig. The mandatory offer period will end on June 11, 2008 and the terms of the offer are prescribed by the requirements of the Norwegian Securities Trading Act.

Acquisition of two UDW drillships

On April 24, 2008, DryShips announced that it will acquire two Ultra Deep Water (UDW) drillships. The drillships are to be constructed by Samsung Heavy Industries Co., Ltd. (SHI) and are expected to be delivered from the shipyard in the third quarter of 2011. The expected delivered cost of each drillship is approximately $800.0 million per unit. The company has received a firm commitment for the debt portion to finance construction and other payments.

Drydocks

The Company expects to incur the following expenditures associated with vessel drydockings:

                                 Second     Third      Fourth
                                quarter    quarter    quarter
                                 2008       2008       2008
                               ---------- ---------- ----------
Number of vessels                       1          -          3
                               ---------- ---------- ----------
Expected cost in USD million          1.5          -        3.5
                               ---------- ---------- ----------
Off-hire days                          30          -         75
                               ---------- ---------- ----------

Such costs are expensed as incurred. The actual days and expenses in connection with vessel drydockings will vary based on the shipyard schedule, weather, condition of the vessel and other factors.

Fleet Data

First Quarter 2008

Total TCE revenue increased during the first quarter of 2008 compared to the first quarter of 2007, primarily as a result of an increase in the average number of vessels operated, from an average of 32.1 vessels in the first quarter of 2007 to 38.3 vessels in the first quarter of 2008, and an increased daily average TCE rate in the first quarter of 2008 of $63,127 from $28,930 in the first quarter of 2007.

Vessel operating expenses increased to $17.8 million for the first quarter of 2008 compared to $14.3 million for the first quarter of 2007. The increase is mainly attributable to the increase in the number of vessels operated from an average of 32.1 vessels for the first quarter of 2007 to 38.3 vessels for the first quarter of 2008.

Depreciation increased to $24.4 million in the first quarter of 2008 compared to $16.0 million in the first quarter of 2007. This was a direct result of the increase in the Company's fleet from an average of 32.1 vessels in the first quarter of 2007 to an average of 38.3 vessels in the first quarter of 2008.

General and administrative expenses (including management fees) increased to $5.7 million in the first quarter of 2008 from $4.1 million in the first quarter of 2007 as a direct result of the increase in the number of fleet calendar days from 2,887 in the first quarter of 2007 to 3,485 in the first quarter of 2008 due to the growth of the fleet and the significant increase in the exchange rate between the USD and Euro.

First Quarter 2008


(Dollars in thousands, except
Average Daily Results - unaudited)            Three Months   Three Months
                                                 Ended          Ended
                                                March 31,      March 31,
                                                  2008           2007
                                              -------------  -------------
Average number of vessels (1)                          38.3           32.1
Total voyage days for fleet (2)                       3,452          2,813
Total calendar days for fleet (3)                     3,485          2,887
Fleet Utilization (4)                                  99.1%          97.4%
Time charter equivalent (5)                          63,127         28,930
Capesize                                            112,151         39,605
Panamax                                              57,383         27,825
Handymax                                             40,462         21,605
Vessel operating expenses (daily) (6)                 5,100          4,956
Management fees (daily)                                 800            760
General and administrative expenses (daily) (7)         837            654
Total vessel operating expenses (daily) (8)           6,737          6,370


(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 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.
(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.
(7) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period.
(8) Total vessel operating expenses, or TVOE is a measurement of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses, management fees and general and administrative
expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days
for the relevant time period.

TCE Rates:

The following table reflects the calculation of our TCE rates for the three month periods ended March 31, 2008 and 2007:

                                     Three Months   Three Months
(Dollars in thousands)                   Ended          Ended
                                       March 31,      March 31,
                                         2008           2007
                                     -------------  -------------
Voyage revenues                            232,063         86,650
Voyage expenses                            (14,150)        (5,270)

                                     -------------  -------------
Time Charter equivalent revenues           217,913         81,380
                                     =============  =============

Total voyage days for fleet                  3,452          2,813

Time charter equivalent (TCE) rate          63,127         28,930

Financial Statements

Income Statements

The following are DryShips Inc.'s Unaudited Interim consolidated condensed Income Statements for the three month periods ended March 31, 2007 and 2008:

 (Expressed in thousands of U.S. Dollars - except for share and per share
                                  data)

                                                      Three Months Ended
                                                          March 31,
                                                       2007        2008
                                                    ----------  ----------
REVENUES:
Voyage revenues                                     $   86,650  $  232,063
                                                    ----------  ----------

EXPENSES:
  Voyage expenses                                        5,270      14,150
  Vessels' operating expenses                           14,309      17,773
  Depreciation                                          16,045      24,418
  Gain on sale of vessels                              (31,609)    (24,443)
  General and administrative expenses                    4,084       5,705
                                                    ----------  ----------
  Operating income                                      78,551     194,460
                                                    ----------  ----------

OTHER INCOME (EXPENSES):
  Interest and finance costs, net                      (10,588)    (12,892)
  Loss on interest rate swap valuation                    (160)     (6,074)
  Other, net                                                (1)        (19)
                                                    ----------  ----------

  Total other income (expenses), net                   (10,749)    (18,985)
                                                    ----------  ----------

  Net Income before equity in income of investee        67,802     175,475
                                                    ----------  ----------

  Equity in income of  investee                              -         857

Net Income                                          $   67,802  $  176,332
                                                    ==========  ==========

Earnings per common share, basic and diluted        $     1.91  $     4.61
                                                    ==========  ==========

Weighted average number of common shares, basic and
 diluted                                            35,490,097  38,213,975
                                                    ==========  ==========

Balance Sheet

The following are DryShips Inc.'s unaudited Interim Condensed Consolidated Balance Sheets as at December 31, 2007 and March 31, 2008:

 (Expressed in thousands of U.S. Dollars - except for share and per share
                                  data)

                                              December 31,     March 31,
                                                  2007           2008
                                              -------------- --------------
ASSETS
CURRENT ASSETS:
  Cash and cash equivalents                   $      111,068 $      624,515
  Restricted cash                                      6,791          6,453
  Other current assets                                35,176         35,413
                                              -------------- --------------
  Total current assets                               153,035        666,381
                                              -------------- --------------

FIXED ASSETS, NET:

  Advances for vessels under construction and
   acquisitions                                      118,652        162,423
  Vessels, net                                     1,643,867      1,668,578
                                              -------------- --------------
  Total fixed assets, net                          1,762,519      1,831,001
                                              -------------- --------------

OTHER NON-CURRENT ASSETS:
  Long-term investments                              405,725        406,582
  Restricted cash                                     20,000         40,000
  Other                                                3,153          2,155
                                              -------------- --------------
  Total non-current assets                           428,878        448,737

                                              -------------- --------------
  Total assets                                $    2,344,432 $    2,946,119
                                              ============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Current portion of long-term debt           $      194,999 $      191,830
  Other current liabilities                           44,305         33,266
                                              -------------- --------------

  Total current liabilities                          239,304        225,096
                                              -------------- --------------

NON-CURRENT LIABILITIES
Long-term debt, net of current portion             1,048,779      1,144,283
Other non-current liabilities                         34,620         33,421
                                              -------------- --------------
Total non-current liabilities                      1,083,399      1,177,704
                                              -------------- --------------

COMMITMENTS AND CONTINGENCIES                              -             -

STOCKHOLDERS' EQUITY                               1,021,729      1,543,319

  Total liabilities and stockholders' equity  $    2,344,432 $    2,946,119
                                              ============== ==============



EBITDA Reconciliation

DryShips Inc. considers EBITDA to represent net income before interest, taxes, depreciation and amortization. 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 EBITDA may not be comparable to that reported by other companies. EBITDA is included herein because it is a basis upon which the Company assesses its liquidity position, it is used by our lenders as a measure of our compliance with certain loan covenants 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 cash provided by operating activities to EBITDA:

Dollars in thousands                                  Three Months ended
                                                    March 31,   March 31,
                                                       2007        2008
Net cash provided by operating activities               42,590     164,900
Net increase (decrease) in current assets                5,789        (647)
Net decrease in current liabilities, excluding
 current portion of long-term debt                       1,860      13,409
Gain on sale of vessels                                 31,609      24,443
Amortization of fair value of acquired time charter
 agreements                                              1,299       4,658
Amortization of free lubricants benefit                     33          24
Change in fair value of derivatives                      1,106      (6,074)
Equity in income of investee                                 -         857
Net interest expense                                    10,588      12,892
Other expenses, net                                        161       6,093
Amortization of deferred financing costs included
 in net interest expense                                  (439)       (820)
                                                    ----------  ----------
EBITDA                                                  94,596     219,735
                                                    ==========  ==========



Fleet List

The table below describes in detail our fleet development and current employment profile as of May 16, 2008:

                         Year
                         Built     DWT      Type
Capesize:
Manasota                  2004   171,061  Capesize
Alameda                   2001   170,269  Capesize
Capri                     2001   172,579  Capesize
Samsara                   1996   150,393  Capesize
Brisbane                  1995   151,066  Capesize
                           0.0   815,368         5
Panamax:
Catalina                  2005    74,432   Panamax
Majorca                   2005    74,364   Panamax
Padre                     2004    73,601   Panamax
Saldahna                  2004    75,500   Panamax
Avoca                     2004    76,500   Panamax
Ligari                    2004    75,583   Panamax
Oregon                    2002    74,204   Panamax
Mendocino                 2002    76,623   Panamax
Bargara                   2002    74,832   Panamax
Heinrich Oldendorff       2001    73,931   Panamax
Maganari                  2001    75,941   Panamax
Sonoma                    2001    74,786   Panamax
Capitola                  2001    74,832   Panamax
Samatan                   2001    74,823   Panamax
Ecola                     2001    73,931   Panamax
Coronado                  2000    75,706   Panamax
Marbella                  2000    72,561   Panamax
Redondo                   2000    74,716   Panamax
Conquistador              2001    75,607   Panamax
Ocean Crystal             1999    73,688   Panamax
Xanadu                    1999    72,270   Panamax
Primera                   1998    72,495   Panamax
La Jolla                  1997    72,126   Panamax
Menorca                   1997    71,662   Panamax
Iguana                    1996    70,349   Panamax
Lanzarote                 1996    73,008   Panamax
Waikiki                   1995    75,473   Panamax
Toro                      1995    73,034   Panamax
Solana                    1995    75,100   Panamax
Paragon                   1995    71,259   Panamax
Lacerta                   1994    71,862   Panamax
Tonga                     1984    66,798   Panamax
                           0.0 2,361,597        32
Supramax
Clipper Gemini            2003    51,201  Supramax
VOC Galaxy                2002    51,201  Supramax
                             0   102,402         2
Newbuildings:
TBN                       2008   170,000  Capesize
TBN                       2008   177,000  Capesize
TBN                       2009   180,000  Capesize
TBN                       2009   180,000  Capesize
TBN                       2010   180,000  Capesize
TBN                       2010    82,000  Kamsrmax
TBN                       2010    82,000  Kamsrmax
TBN                       2009    75,000   Panamax
TBN                       2010    75,000   Panamax
                               1,201,000         9

Total Fleet                0.0 4,480,367        48


Conference Call and Webcast: Tuesday May 20, 2008, at 9:30 a.m. EDT

As announced, DryShips' management team will host a conference call on Tuesday, May 20, 2008, at 9:30 a.m. Eastern Daylight Saving 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"

In case of any problem with the above numbers, please dial 1(866) 223 0615 (from the US), 0(800) 694-1503 (from the UK) or +(44) 1452 586-513 (from outside the US). Quote "DryShips"

A replay of the conference call will be available until May 28, 2008. The United States replay number is 1(866) 247 4222; the international replay number is 0(800) 953-1533; from the UK or (+44) 1452-550 000 and access code required for the replay is: 2133051#

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., based in Greece, is an owner and operator of drybulk carriers that operate worldwide. As of the day of this release, DryShips owns a fleet of 48 drybulk carriers comprising 5 Capesize, 32 Panamax, 2 Supramax, 9 newbuilding drybulk vessels, with a combined deadweight tonnage of over 4.5 million tons.

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

Visit our 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 DryShips Inc. believes 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, DryShips Inc. 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 DryShips Inc.'s 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: nbornozis@capitallink.com