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.”

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Iranian Port Deal: Modi's Masterstroke

Indian Prime Minister Narendra Modi signed a deal to develop the Chabahar port in Iran for which India will extend $500 million. The historic pact makes Chabahar

Winners of Ferry Design Contest Selected

Winners of International Student Design Competition for a Safe Affordable Ferry to be revealed at the Ferry Safety and Technology Conference   Dr. Roberta Weisbrod,

Maritime Consolidation: Palfinger Aims to Acquire Harding

As maritime markets continue to struggle, merger and acquisition activity should heat up. Today, Austria's Palfinger Group announced that it intends to acquire

Tanker Trends

TORM CFO Zacho Resigns

Mads Peter Zacho, Chief Financial Offer at TORM, has resigned to become Chief Executive Officer at J. Lauritzen A/S. Mads has been with TORM since 2013 and will

Alfa Laval PureNOx Prime Ordered for Five VLECs

Alfa Laval’s new PureNOx Prime solution for water treatment in Exhaust Gas Recirculation (EGR), will be part of EGR systems on five very large ethane carriers

NASSCO Delivers Second ECO Tanker to APT

On Thursday, May 19, shipbuilders at General Dynamics NASSCO delivered the Magnolia State to longtime customer American Petroleum Tankers (APT). The ECO Class tanker

Finance

STX Sells Lorient Shipyard

The shipbuilding group STX France has offloaded its Lorient shipyard to a naval consortium.    The shipyard, which has produced civil and naval vessels, will be purchased by Kership,

DP World Launches $1.2 bln Sukuk Issue to Cover Tender

Dubai-based ports operator DP World launched a seven-year $1.2 billion sukuk issue on Tuesday, a document from lead managers showed.   The issue, structured to

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

 
 
Maritime Security Maritime Standards Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1138 sec (9 req/sec)