Thursday, November 19, 2009

DryShips Announces Bulk Carrier Purchase As Baltic Index Rise Continues

Company Believes “Distressed state” of Industry gives Opportunities
Shipping News Feature

ATHENS – GREECE – Just a day after announcing the signing of waiver terms for $117.5 of company debt with its bankers, Deutsche Schiffsbank, the dry bulk and contract oil drilling company DryShips Incorporated confirmed yesterday that it would proceed with the purchase of two Panamax vessels which should be delivered, charter free by March 2010.

The two ships, each 76,635 dead weight tonnes, were constructed in 2006 and 2007 respectively and confirm a company statement by George Economou, Chairman and Chief Executive Officer, when he said, “DryShips is in a strong position to take advantage of the distressed opportunities that are emerging from banks, shipyards and other sources.

“I am delighted to report that with the signing of the Deutsche Schiffsbank waiver, we have now obtained all the necessary waivers for all of our outstanding debt. This resolves all cross default issues and is expected to result in the normal classification of our long term debt on our balance sheet. We would like to thank our banks for being extremely supportive of the company.”

The new bulk carriers will add to the 30 Panamax vessels owned by the company who also have 7 Capesize plus 2 Supramax ships totalling over 3.4 million tonnes in addition to their ultra deepwater drilling equipment.

With the news that the Baltic Dry Index continued its previous rise and reached a 14 month high yesterday and that the major players in that market saw their share prices rise simultaneously, there is hope that should the strong demand for coal and iron ore continue, particularly from China, so to will the bulk carriers recovery.