Dryship News

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes and off-shore contract drilling oil services, announced today that Ocean Rig UDW Inc., its majority owned subsidiary, has secured further backlog, as Borders & Southern plc have declared two optional wells under the existing drilling contract for the harsh environment drilling rig Leiv Eiriksson. The two optional wells have been assigned to Falkland Oil and Gas (FOGL) and provide an additional contract duration of approximately 90 days.

DryShips Inc. (NASDAQ:DRYS), a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced the completion of the ATM Equity Offering in which the company raised gross proceeds of approximately $475m since commencing the offering pursuant to the prospectus supplement filed on May 7 2009. Merrill Lynch & Co. acted as sales agent in the offering. Following the completion of the program, the Company has approximately 257,645,000 common shares outstanding. George Economou, Chairman and Chief Executive Officer of the Company commented, “We have successfully completed our latest $475 million equity offering in market conditions where many established companies are struggling to raise capital.

On November 2, DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk cargoes, announced its unaudited financial and operating results for the third quarter and nine months ended September 30, 2008. Dryships reported Net Income of $180m or $4.21 per fully diluted share for the third quarter of 2008. Included in the third quarter results is a capital gain on the sale of two vessels of $65.8m or $1.54 per fully diluted share and a non-cash loss of $36.8m or $.86 per fully diluted share associated with the valuation of interest rate swaps. Excluding these items Net Income would amount to $151m or $3.53 per fully diluted share. For the third quarter of 2008 the company reported EBITDA, excluding vessel gains, of $194.2m.

DryShips Inc. -          The Panamax vessel MV Primera 72,495 dwt built in 1998 for US$ 75 million. 2008. approximately US$ 40 million. -          The Panamax vessel MV Paragon 71,259 dwt built in 1995 for US$ 61 million. 2009. 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. gain of approximately US$ 37 million. from an independent third party. within 2008. charterer at a daily rate of US$ 43,750 per day. commence concurrently with the vessel’s delivery to the Company. within 2008. charterer at a daily rate of US$ 43,750 per day. commence concurrently with the vessel’s delivery to the Company. delivered during the fourth quarter of 2008.

DryShips, Inc., announced that tThe company has entered into an agreement to purchase a 2001 built, 172,579 dwt Capesize bulk carrier, for $152.25 million. It will be delivered, charter free, during the second quarter of 2008. ƒnThe Company also entered into an agreement to sell the 1993 built, 149,475 dwt Capesize bulk carrier, MV Netadola for $93.9 million. Delivery to the new owners will take place during the first quarter of 2008. million. ¡§We are pleased to continue with our strategy of fleet renewal. The replacement of MV Nedatola, a 14 year old smaller Capesize vessel, with a six year old modern Capesize dry bulk carrier, enhances our earnings potential and the longevity of our cash flow,¡¨ said George Economou, Chairman and CEO of DryShips Inc.

DryShips, Inc., (NASDAQ:DRYS) entered into an agreement, with a unaffiliated third party, to acquire a resale contract for a 170,000 dwt Capesize bulk carrier, currently under construction in South Korea, for $147.5 million. The vessel is scheduled for delivery to DryShips in the second quarter of 2008. The acquisition is subject to customary closing conditions. Mr. George Economou, Chairman and CEO of DryShips Inc., commented: “We are pleased to announce the acquisition of a brand new Capesize vessel with a very attractive delivery position. This will enable us to take full advantage of the strong dry bulk market fundamentals expected for next year.”