Dryship Fleet Renewal Continues

 

DryShips Inc. a global provider of marine transportation services for drybulk cargoes entered into the following agreements:

 

Vessel Disposals

The Company has entered into agreements to sell:

-          The Panamax vessel MV Primera 72,495 dwt built in 1998 for US$ 75 million.

Delivery to the new owners is expected to take place during the fourth quarter of

2008. Once the sale is concluded, the company expects to realize a gain of

approximately US$ 40 million.

-          The Panamax vessel MV Paragon 71,259 dwt built in 1995 for US$ 61 million.

Delivery to the new owners is expected to take place during the first quarter of

2009. Once the sale is concluded, the company expects to realize a gain of

approximately US$ 31 million.

-          The Panamax vessel MV Menorca 71,662 dwt built in 1997 for US$ 77 million.

Delivery to the new owners took place in June, 2008. The company realized a

gain of approximately US$ 37 million.

 

Vessel Acquisitions and Time Charters

In line with its strategy of selling older vessels and replacing them with modern vessels,

the company has entered into agreements to acquire the following vessels from

companies beneficially owned by George Economou, Chairman and CEO of DryShips

Inc., on terms that the Company believes are comparable to those that may be obtained

from an independent third party.

The Company has entered into agreements to acquire:

-          A 75,228 dwt Panamax vessel built in 2008 which is expected to be delivered

within 2008. The Company has entered into an agreement to time charter the

vessel for a period of approximately four years with an unrelated first class

charterer at a daily rate of US$ 43,750 per day. The time charter is expected to

commence concurrently with the vessel’s delivery to the Company.

-          A 75,204 dwt Panamax vessel built in 2007 which is expected to be delivered

within 2008. The Company has entered into an agreement to time charter the

vessel for a period of approximately four years with an unrelated first class

charterer at a daily rate of US$ 43,750 per day. The time charter is expected to

commence concurrently with the vessel’s delivery to the Company.

-          A 75,000 dwt Panamax vessel under construction in China scheduled to be

delivered during the fourth quarter of 2008.

-          A 75,000 dwt Panamax vessel under construction in China scheduled to be

delivered during the first quarter of 2009.

The en bloc acquisition price of the above four Panamax bulk carriers will be US$ 400

million.