Dryships Announces Entry into Tanker Sector

(Press Release)
Monday, December 27, 2010

DryShips Inc. a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced today that it has entered into agreements with a first class Korean shipyard to purchase twelve high specification newbuilding tankers at a total purchase price of about $770 million, including over $3 million per vessel in extra items. The deliveries of the vessels are scheduled as follows:

- Six newbuilding Aframax tankers with following deliveries: four in 2011 and two in 2012

- Six newbuilding Suezmax tankers with following deliveries: one in 2011, two in 2012 and three in 2013

The company has made initial payments of about $120 million against these newbuilding contracts from cash on hand. The Company intends to finance the remaining capital commitments, which include delivery installments of about 70% of each vessel’s price, with cash on hand and bank debt. The Company intends to position its tanker investments for a spinoff or initial public offering.

Mr. George Economou, Chairman and CEO of DryShips Inc., said:

“We are pleased to announce the acquisition of 12 high specification newbuilding tankers

from a first class Korean shipyard. With OceanRig UDW’s successful Norwegian offering, we have positioned OceanRig UDW to be a pure play in the ultra deepwater drilling sector with contracts and a balance sheet that is self-sustaining. We intend to take further steps to enhance OceanRig UDW’s status as a pure deepwater drilling participant. In addition, our Board has decided that it is time to refocus on the shipping markets where we see opportunities developing for both the drybulk and tanker sector. While the tanker market is currently experiencing low freight rates, we believe that in the medium to long term strong oil demand growth as a result of the urbanization underway in and will lead to substantially improved market conditions. The staggered deliveries for our newbuildings over the next three years will allow us to take advantage of an improvement in market conditions over the next one to two years. We intend to make our tankers a standalone entity during 2011.

We are positioning the Company to be a significant player in the tanker market with a sizable fleet and a balance sheet that can withstand the cyclicality of the tanker market. DryShips has proven that we can make investments that add shareholder value in the long-term by leveraging our position in the market and the relationships we have built over the long-term with customers, shipyards, investors and banks. Our technical manager currently manages a fleet of tankers and has a long history in the sector.

DryShips has evolved over the last three years as a company that can leverage its brand

name in the industry to develop businesses and position them to operate as standalone public companies. The tanker acquisition and eventual spin off or public offering is the next step in the evolution of the Company. We believe that 2011 will be a critical year for DryShips as we leverage the platform built over the last few years to enhance shareholder value.”

 


People & Company News

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Why Maritime Museums Matter

With today’s focus on digital technology, mobile apps, enhanced reality and the overall digital landscape, the maritime industry often gets overshadowed, leaving some to ask,

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Tanker Trends

Hellenic Petroleum Profits Rise on Higher Exports

Hellenic Petroleum, Greece's biggest oil refiner, posted a 20 percent rise in second-quarter core profit on Thursday, with higher exports offseting lower refining margins.

Alfa Laval Launches DuroShell LPG/E Cargo Condenser

With the new Alfa Laval DuroShell plate-and-shell heat exchanger, Alfa Laval aims to strengthen its offering in LPG/E cargo reliquefaction with a construction that

Navy Discovers Malaysian Tanker

Indonesia's navy has found a tanker carrying almost US$400,000 worth of diesel that was taken by its own crew last week due to a commercial dispute, says a report in AFP.

Finance

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Asia’s Biggest Container Shipper Posts Loss

Asia’s largest container shipping company China Cosco Holdings Co  posted a net loss of Yuan7.2bn ($1.1bn) for the first six months of 2016, reversing the Yuan2bn

Hoegh LNG Profits Dip

Norway-based owner and operator of floating LNG import terminals, Höegh LNG  reported a second quarter profit after tax of US$3.5 million, down from $6.3 million in the first quarter 2016.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Offshore Oil Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1216 sec (8 req/sec)