DryShips Inc. Reports Third Quarter 2008 Results

Tag : Freight Insurance


DryShips Inc. (NASDAQ: DRYS), a global provider of marinetransportation services for drybulk cargoes, today announced itsunaudited financial and operating results for the third quarter andnine months ended September 30, 2008.
Financial Highlights
(1) Please see later in this release for a reconciliation of EBITDAto Net cash provided by operating activities.
George Economou, Company's Chairman and Chief Executive Officer ofDryShips Inc., commented:
"We are pleased to report another quarter with solid operationaland financial results. Taking advantage of the strong freight rateenvironment prevailing in the second and third quarters of 2008, wegradually shifted our chartering strategy from spot to period withoptimal timing. As of today, going forward, we have secured half abillion of revenues per year, having covered annually between 54%and 59% of our drybulk fleet operating days under fixed timecharters with an average duration of five years. Furthermore, thediversification of our charterers among a first class baseminimizes our counterparty risk.
"DryShips is also in a strong financial condition with cash of $456million and another $1.224 billion of available committed banklines, thereby providing us with total liquidity of $ 1.6 billion.Therefore, we believe that we have secured the future of our coredry bulk shipping business while enhancing our earnings visibilityand providing us with significant operational leverage andflexibility. We have also expanded and modernized our fleet overthe past year enhancing the longevity and quality of our earningscapacity.
"The lack of financing of global trade has temporarily brought thespot market to a virtual standstill but we expect this situation tonormalize as the credit crunch subsides and stockpiles aregradually but steadily drawn down. We continue to believe in thelong term fundamentals of drybulk shipping. On the demand side, theinfrastructure building in the developing economies of China andother countries is irreversible and will continue. On the supplyside, we expect that a significant portion of the orderbook willnot be delivered due to financing constraints, while scrapping willincrease, leading to a tighter supply between supply and demandbalance and a healthier freight market. With our modern fleet andstrong locked-in cash flows and a strong balance sheet, DryShips isstrategically positioned to take advantage of market opportunitiesas they may arise.
"We are also on track with the implementation of our strategicvision of building a strong position in the ultra deep waterdrilling sector. With two fully operational units and fouradditional newbuildings on the way with attractive delivery times,our subsidiary, Primelead, is strategically positioned to be amajor participant in this market and to benefit from the strongfundamentals of the ultra deep water drilling sector. Demandcontinues to outstrip supply, leading to record daily hire ratesfor the few assets available for employment. We are on track withour objective to spin off this unit to our shareholders within thefirst quarter of 2009 or earlier, thereby providing ourshareholders with a significant value proposition. The spun-offentity, to be renamed 'Ocean Rig UDW Inc.,' will be listed on a USExchange and will be spun-off to our shareholders in the form of aspecial share dividend.
"Our strategy has been focused on generating superior operating andfinancial returns and we reiterate our commitment to maximizeshareholder value for the longer term."
Results for Quarter ended September 30, 2008
Following our acquisition of Ocean Rig, we have two reportablesegments, the drybulk carrier segment and the offshore drilling rigsegment. For the quarter ended September 30, 2008, Net VoyageRevenues (Voyage Revenues less Voyage Expenses) amounted to $228.2million as compared to $140.5 million for the quarter endedSeptember 30, 2007. For the quarter ended September 30, 2008,revenues from drilling contracts following the acquisition of OceanRig amounted to $89.0 million. We did not earn any revenues fromdrilling contracts in the quarter ended September 30, 2007, asOcena Rig was not part of Dryships. Total Operating Income, fromboth segments, was $247.5 million for the quarter ended September30, 2008, as compared to $119.9 million for the quarter endedSeptember 30, 2007. Total Net Income, from both segments, for thequarter ended September 30, 2008 was $180.0 million or $4.21Earnings Per Share (EPS) calculated on 42,721,141 weighted averagefully diluted shares outstanding as compared to $105.3 million or$2.97 EPS calculated on 35,490,097 weighted average fully dilutedshares outstanding for the quarter ended September 30, 2007. TotalEBITDA, from both segments, for the quarter ended September 30,2008 was $260.0 million as compared to $137.6 million for thequarter ended September 30, 2007.
An average of 38.9 vessels were owned and operated during the thirdquarter of 2008, earning an average Time Charter Equivalent, orTCE, rate of $63,965 per day as compared to an average of 33.7vessels owned and operated during the third quarter of 2007 earningan average TCE rate of $45,525 per day. During the third quarter of2008, the two drilling rigs that the Company acquired through OceanRig operated at an average daily rate of $483,734.
Results for Nine Months ended September 30, 2008
Following our acquisition of Ocean Rig, we have two reportablesegments, the drybulk carrier segment and the offshore drilling rigsegment. For the nine month period ended September 30, 2008, NetVoyage Revenues (Voyage Revenues less Voyage Expenses) amounted to$691.1 million as compared to $327.4 million for the nine monthperiod ended September 30, 2007. For the nine month period endedSeptember 30, 2008, revenues from drilling contracts amounted to$131.9 million. The Company did not earn any revenues from drillingcontracts in the nine month period ended September 30, 2007, asOcean Rig was not part of Dryships. Total Operating Income, fromboth segments, was $778.1 million for the nine month period endedSeptember 30, 2008, as compared to $319.9 million for the ninemonth period ended September 30, 2007. Total Net Income, from bothsegments, for the nine month period ended September 30, 2008 was$656.1 million or $15.98 EPS calculated on 41,034,409 weightedaverage fully diluted shares outstanding as compared to $283.9million or $8.00 EPS calculated on 35,490,097 weighted averagefully diluted shares outstanding for the nine month period endedSeptember 30, 2007. Total EBITDA, from both segments, for the ninemonth period ended September 30, 2008 was $831.9 million ascompared to $373.0 million for the nine month period endedSeptember 30, 2007.
An average of 38.6 vessels were owned and operated during the ninemonth period ended September 30, 2008, earning an average TCE rateof $65,909 per day as compared to an average of 32.8 vessels ownedand operated during the nine month period ended September 30, 2007earning an average TCE rate of $37,108 per day. During the periodfrom May 14, 2008 through September 30, 2008, the two drilling rigsthat the Company acquired through Ocean Rig operated at an averagedaily rate of $481,237.
Dry-dock Related Expenses
During the third quarter of 2008, no vessel was drydocked.
During the first quarter of 2008, the Company changed its method ofaccounting for dry-docking costs from the deferral method to thedirect expense method under which related costs are expensed asincurred. The September 30, 2007 Condensed Consolidated FinancialStatements and the December 31, 2007 Condensed Consolidated BalanceSheet are adjusted to reflect this change in Accounting Policy.
Capitalization
On September 30, 2008, the ratio of debt to total capitalization(debt, net of deferred financing fees and stockholders equity) was57.6% and the ratio of net debt (total debt less cash and cashequivalents) to total capitalization (total debt less cash and cashequivalents and stockholders equity) was 53.4%. As of September 30,2008, the Company had total cash and cash equivalents of $456.4million.
Financing Activities
In July 2008 the Company concluded two facility agreements withDeutsche Bank A.G for an aggregate amount of $1.125 billion inorder to partly finance the construction cost of drillship hulls1865 and 1866. The loans bear interest at LIBOR plus a margin andare repayable in eighteen consecutive semi-annually installments.
In July 2008 the Company concluded a facility agreement with NordLB for an amount of $126.4 million in order to partly finance theacquisition cost of the vessel MV Flecha. The loan bears interestat LIBOR plus a margin and is repayable in forty consecutivequarterly installments.
On July 9, 2008 the Company's subsidiary, Ocean Rig, entered intoan addendum to an existing financing arrangement in the amount of$250 million to refinance the subsidiary's $252.3 million seniorunsecured callable bonds. The Company drew down the full amount ofthe loan which was repayable on September 30, 2008. This creditfacility was repaid in September 2008, with proceeds from theCompany's new credit facility discussed below.
On September 17, 2008, the Company entered into a new five-yearsecured credit facility in the amount of $1.04 billion in order torefinance Ocean Rig's existing loan indebtedness and for generalcorporate purposes. On September 30, 2008, the Company drew down$750 million of the new credit facility. The drawdown proceeds wereused to repay all other Ocean Rig outstanding debt at the date ofthe drawdown amounting to $776 million including the $250 millionloan discussed above. The credit facility consists of a guaranteefacility, three revolving credit facilities and a term loan. Theaggregate amount of the term loan is up to $400 million and theaggregate amount under revolving credit facility A is up to $350million, the aggregate amount under revolving credit facility B isup to $250 million, the aggregate amount under revolving creditfacility C is up to $20 million, and the guarantee facility alsoprovides us with a letter of credit of up to $20 million. Theundrawn amounts under credit facility A are required to be reducedby $17.5 million on December 17, 2008, and quarterly thereafteruntil September 17, 2013, which is 60 months after the date of theagreement. The loan bears interest at Libor plus a margin and isrepayable in 20 quarterly installments plus a balloon payment of$400 million payable together with the last installment, onSeptember 2013.
As of September 30, 2008, the Company had a total of $2.899 billionin debt outstanding under its credit facilities with severalinstitutions.
Fleet Developments
Deliveries - New Vessels
On July 28, 2008, the Company took delivery of the vessel MVSorento, a 2004 built second-hand 76,500 dwt Panamax drybulkcarrier, which it had agreed to acquire for $86.7 million.
On July 30, 2008, the Company took delivery of the vessel MVFlecha, a 2004 built second-hand 170,012 dwt drybulk carrier, whichit had agreed to acquire for $158.0 million.
Deliveries - Sold Vessels
On July 2, 2008, the MV Waikiki, a 1995 built 75,473 dwt Panamaxdrybulk carrier was delivered to her new owners for a sale price of$63.0 million. The Company realized a gain of $36.9 million, whichwas recognized in the third quarter of 2008.
On August 14, 2008, the MV Solana, a 1995 built 75,473 dwt Panamaxdrybulk carrier was delivered to her new owners for a sale price of$63.0 million. The Company realized a gain of $29.2 million, whichwas recognized in the third quarter of 2008.
Vessels Acquisitions
On June 25, 2008, the Company entered into memoranda of agreementto acquire two Panamax vessels the MV Sidari and the MV Petani foran aggregate purchase price of $200.0 million. The vessels areexpected to be delivered by the end of 2008 with existing timecharters attached, each with a remaining period of approximatelyfour years and a daily rate of $43,750.
In July 2008, the Company entered into two agreements to acquirethe total shares of two companies previously held by companiescontrolled by George Economou. The purchase price for the sharesamounts to $140.0 million in total. These companies' assets are twocharter free Panamax vessels currently under construction, in afirst class Chinese yard, that are scheduled to be delivered in thefourth quarter of 2008 and the first quarter of 2009 respectively.The company has assumed the obligation to make $60 million in yardinstallments between now and the delivery as per the pre-existingshipbuilding contracts.
On August 13, 2008, the Company agreed to acquire the MV Petalidi,a 76,608 dwt Panamax drybulk carrier, delivery of which is expectedduring the first quarter of 2009 for a total price of approximately$61 million. The vessel is expected to be delivered with itsexisting time charter attached, with a remaining period ofapproximately 4 years and a gross daily rate of $28,000.
On October 6, 2008, the Company announced it had entered intoagreements pursuant to which the Company will issue 19,431,840shares in exchange for the shares of the single purpose companies,entities controlled by clients of Cardiff Marine including Mr.George Economou, owning nine Capesize drybulk carriers, Thesevessels consist of four ships in the water and five newbuildings,totaling 1.6 million dwt with an average age of approximately 2years. The four vessels in the water have time charters attachedwith durations ranging from three to five years at daily ratesbetween $ 50,000 and $67,500, as detailed in the press release ofOctober 6, 2008.
Vessels Disposals
On March 15, 2008, the Company entered into an agreement to sellthe MV Lacerta a 1994 built 71,862 dwt Panamax drybulk carrier fora price of approximately $55.5 million. The Company expects torealize a gain of approximately $44.7 million which will berecognized in the fourth quarter of 2008.
On May 19, 2008, the Company entered into an agreement to sell theMV Primera a 1998 built 72,495 dwt Panamax drybulk carrier for aprice of approximately $75.0 million. This agreement wassubsequently cancelled on October 15, 2008 and the advance paid bythe buyers in the amount of $9.0 million was retained by theCompany.
On June 24, 2008, the Company entered into an agreement to sell theMV Paragon a 1995 built 71,259 dwt Panamax drybulk carrier for aprice of approximately $61.0 million. The Company expects torealize a gain of approximately $30.8 million which will berecognized in the first quarter of 2009.
On July 17, 2008, the Company entered into an agreement to sell theMV Toro a 1995 built 73,034 dwt Panamax drybulk carrier for a priceof approximately $63.4 million. The Company expects to realize again of approximately $36.0 million which will be recognized in thefirst quarter of 2009.
On July 29, 2008, the Company entered into an agreement to sell theMV La Jolla a 1997 built 72,126 dwt Panamax drybulk carrier for aprice of approximately $66.0 million. The Company expects torealize a gain of approximately $33.4 million which will berecognized in the first quarter of 2009.
Gains on Vessel Disposals
During the nine-months ended September 30, 2008 the Companyrecognized an aggregate gain on sale of vessels of $226.0 millionor $5.51 per share. Based on agreements that have been concluded todate, the Company expects to recognize a capital gain of $44.7million in the fourth quarter of 2008 and approximately $100.2million in the first quarter of 2009.
Dividend Payment
On September 30, 2008, the Company declared a dividend of $0.20 pershare payable on October 31, 2008, to the stockholders of record asof October 15, 2008. This is the fourteenth consecutive quarterlydividend since Dryships became a publicly listed company inFebruary 2005.
As of September 30, 2008, the Company has a total of $ 43,550,000shares of common stock issued and outstanding.
Following the issuance of the shares in exchange for the nineCapesize vessels, as announced on October 6, 2008, the total numberof shares outstanding will increases 62,984,840.
Acquisition of Ocean Rig ASA
On May 14, 2008, DryShips obtained control of Ocean Rig. Ocean Rig,a former Oslo Stock Exchange listed company, is a drillingcontractor in the area of offshore exploration, development andproduction and operates two ultra deep-water drilling rigs, theLeiv Eiriksson and the Eirik Raude. As of July 10, 2008, Dryshipsheld 100% of Ocean Rig's outstanding capital stock. On July 22,2008, Ocean Rig was delisted from the Oslo Stock Exchange.
Ocean Rig's operating results are reflected in the Company'sconsolidated financial statements from May 14, 2008, and theacquisition has been accounted for using the purchase method ofaccounting. In accordance with such purchase accounting, certainpreliminary fair values were allocated to significant assetsacquired and liabilities assumed of Ocean Rig in connection withthe consolidation of its financial results with the financialresults of the Company. This purchase price allocation andresulting goodwill have not yet been finalized and thus may berevised in a future filing.
Acquisition of four UDW drillships
On April 24, 2008, the Company announced that it will acquire twoUltra Deep Water (UDW) drillships. The drillships are to beconstructed by Samsung Heavy Industries Co. Ltd. (SHI) and areexpected to be delivered from the shipyard in the third quarter of2011. The expected total cost of each drillship is approximately$800.0 million per unit. The drillships will be managed by OceanRig.
On October 6, 2008, the Company announced it had entered into anagreement to take over the equity interests of a holding companywhich owns two advanced capability drillships for use in ultra deepwater drilling (UDW) locations. The drillships are to beconstructed by Samsung Heavy Industries Co., Ltd. (SHI) and areexpected to be delivered from the shipyard in the fourth quarter of2010 and the first quarter of 2011. The consideration payable tothe Sellers, entities controlled by clients of Carfiff Marineincluding Mr. George Economou, for these two UDW drillships will bein the form of newly issued shares of Primelead Shareholders Inc..Following this transaction Primelead Shareholders Inc., will ownsix UDW units including 2 harsh environment (HE) semisubmersiblerigs presently operational.
Drydockings
The company expects to incur the following expenditures associatedwith vessel drydockings:
Such costs are expensed as incurred. The actual days and expensesin connection with vessel drydockings will vary based on theshipyard schedule, weather, condition of the vessel and otherfactors.
Fleet Data
Third Quarter of 2008
Total TCE revenue increased during the third quarter of 2008compared to the third quarter of 2007, primarily as a result of anincrease in the average number of vessels operated from an averageof 33.7 vessels in the third quarter of 2007 to 38.9 vessels in thethird quarter of 2008, and an increased daily average TCE rate inthe third quarter of 2008 of $ 63,965 from $45,525 in the thirdquarter of 2007.
During the third quarter of 2008 revenue from the two drilling rigsacquired through Ocean Rig amounted to $89.0 million.
Vessel operating expenses increased to $19.6 million during thethird quarter of 2008 compared to $15.6 million during the thirdquarter of 2007. The increase is mainly attributable to theincrease in the number of vessels operated from an average of 33.7vessels during the third quarter of 2007 to 38.9 vessels during thethird quarter of 2008.
During the third quarter of 2008 operating expenses for the twodrilling rigs were $40.9 million.
Total depreciation increased to $49.1 million for the third quarterof 2008 compared to $20.2 million for the third quarter of 2007.This was a direct result of the increase in the Company's fleetfrom an average of 33.7 vessels in the third quarter of 2007 to anaverage of 38.9 vessels in the third quarter of 2008 and thedepreciation on the two drilling rigs for the period since theconsolidation of Ocean Rig's financial results with the financialresults of the Company.
Total general and administrative expenses, which includesmanagement fees, increased to $25.9 million in the third quarter of2008 from $5.4 million in the third quarter of 2007, mainly due toamortization of stock based compensation in the amount of $22.1million, the increase in the number of fleet calendar days from3,098 in the third quarter of 2007 to 3,578 in the third quarter of2008 due to the growth of the fleet, and the significant increasein the exchange rate between the US Dollar and Euro.
Nine Month period ended September 30, 2008
Total TCE revenue increased during the nine month period of 2008compared to the nine month period of 2007, primarily as a result ofan increase in the average number of vessels operated, from anaverage of 32.8 vessels in the nine month period of 2007 to 38.6vessels in the nine month period of 2008, and an increase in thedaily average TCE rate from $37,108 in the nine month period of2007 to $65,909 in the nine month period of 2008. During the ninemonths ended September 30, 2008, revenue from the two drilling rigsamounted to $131.9 million.
Vessel operating expenses increased to $57.3 million for the ninemonth period of 2008 compared to $45.5 million for nine monthperiod of 2007. The increase is attributable to the increase in thenumber of vessels operated from an average of 32.8 vessels for thenine month period of 2007 to 38.6 vessels for the nine month periodof 2008. During the nine months ended September 30, 2008 operatingexpenses for the two drilling rigs amounted to $52.1 million.
Total depreciation increased to $108.3 million in the nine monthperiod of 2008 compared to $54.2 million in the nine month periodof 2007. This was a direct result of the increase in the Company'sfleet from an average of 32.8 vessels in the nine month period of2007 to an average of 38.6 vessels in the nine month period of 2008and the depreciation on the two drilling rigs for the period sincethe consolidation of Ocean Rig's financial results with thefinancial results of the Company.
Total general and administrative expenses, including managementfees, increased to $53.1 million in the nine month period of 2008from $14.0 million in the nine month period of 2007, mainly due tothe amortization of the stock based compensation in the amount of$22.1 million, the increase in the number of fleet calendar daysfrom 8,965 in the third quarter of 2007 to 10,567 in the thirdquarter of 2008 due to the growth of the fleet and the significantincrease in the exchange rate between the US Dollar and Euro.
Third Quarter 2008
* Excluding Amortization of Stock based compensation of $10.0million
Nine month period ended September 30, 2008
* Excluding amortization of stock based compensation of $22.1million
(1) Average number of vessels is the number of vessels thatconstituted our fleet for the relevant period, as measured by thesum of the number of days each vessel was a part of our fleetduring the period divided by the number of calendar days in thatperiod. Average number of drilling rigs is the number of drillingrigs for the relevant period, as measured by the sum of the numberof days each drilling rig was owned by the Company divided by thenumber of calendar days in that period.
(2) Total voyage days for vessels are the total days the vesselswere in our possession for the relevant period net of off hiredays. Total employment days for drilling rigs are the total daysthe drilling rigs were in our possession for the relevant periodnet of off hire days.
(3) Calendar days are the total days the vessels or drilling rigs,as applicable, were in our possession for the relevant periodincluding off hire days.
(4) Vessels utilization is the percentage of time that our vesselswere available for revenue generating days, and is determined bydividing voyage days by calendar days for vessels for the relevantperiod. Rigs utilization is the percentage of time that ourdrilling rigs were available for revenue generating days, and isdetermined by dividing employment days by calendar days fordrilling rigs for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the averagedaily revenue performance of a vessel on a per voyage basis. Ourmethod of calculating TCE is consistent with industry standards andis determined by dividing voyage revenues (net of voyage expenses)by voyage days for the relevant time period. Voyage expensesprimarily consist of port, canal and fuel costs that are unique toa particular voyage, which would otherwise be paid by the chartererunder a time charter contract, as well as commissions. TCE is astandard shipping industry performance measure used primarily tocompare period-to-period changes in a shipping company'sperformance despite changes in the mix of charter types (i.e., spotcharters, time charters and bareboat charters) under which thevessels may be employed between the periods. The following tablereflects the calculation of our TCE rates for the three and sixmonths periods ended June 30, 2007 and 2008:
(6) Daily revenue from drilling contracts is calculated by dividingrevenue from drilling contracts by rigs employment days for therelevant time period.
(7) Daily vessel operating expenses, which includes crew costs,provisions, deck and engine stores, lubricating oil, insurance,maintenance and repairs is calculated by dividing vessel operatingexpenses by vessels calendar days for the relevant time period.Daily rig operating expenses, which includes crew costs,provisions, repairs and maintenance, insurances and other operatingexpenses is calculated by dividing rig operating expenses bycalendar days for drilling rigs for the relevant time period.
(8) Total vessel operating expenses or TVOE is a measurement of ourtotal expenses associated with operating our vessels. TVOE is thesum of vessel operating expenses and management fees. Daily TVOE iscalculated by dividing TVOE by vessel calendar days for therelevant time period.
(9) Daily general and administrative expense is calculated bydividing general and administrative expense per segment (Drybulk,Drilling Rig) by total calendar days for vessels and total calendardays for drilling rigs respectively, for the relevant time period.
Financial Statements
Income Statements
The following are DryShips Inc.'s Unaudited Interim CondensedConsolidated Income Statements for the three and nine-month periodsended September 30, 2007 and 2008:
Balance Sheet
The following are DryShips Inc.'s Unaudited Interim CondensedConsolidated Balance Sheets as at December 31, 2007 and September30, 2008:
EBITDA Reconciliation
DryShips Inc. considers EBITDA to represent net income beforeinterest, taxes, depreciation and amortization. EBITDA does notrepresent and should not be considered as an alternative to netincome or cash flow from operations, as determined by United Statesgenerally accepted accounting principles, or U.S. GAAP and ourcalculation of EBITDA may not be comparable to that reported byother companies. EBITDA is included herein because it is a basisupon which the Company assesses its liquidity position, it is usedby our lenders as a measure of our compliance with certain loancovenants and because the Company believes that it presents usefulinformation to investors regarding a company's ability to serviceand/or incur indebtedness.
The following table reconciles net cash provided by operatingactivities to EBITDA:
Fleet List
The table below describes our fleet development and currentemployment profile as of October 31, 2008:
Fleet Employment Data
* Linked to BDI until June 30, 2009.
** Staggered at a gross daily rate of $122,500, $95,000, $55,000,$35,000 and $30,000 for years one through five respectively.
*** The average spot rate for October 2008 was $28,000.
1. For spot vessels the TCE rate is for current voyage.
2. For vessels trading in the Baumarine pool the TCE rate is thePool's estimate for earnings in the month of September.
3. For vessels trading in the spot market or in the Baumarine pool,the quoted rates are not indications of future earnings and thecompany gives no assurance or guarantee of future rates.
4. The MV Heinrich Oldendorff, MV Clipper Gemini, MV VOC Galaxy isemployed under a bareboat charter.
Conference Call and Webcast: November 3, 2008
As announced, DryShips' management team will host a conferencecall, November 3, 2008 at 8:00 AM Eastern Standard Time to discussthe Company's financial results.
Conference Call Details
Participants should dial into the call 10 minutes before thescheduled time using the following numbers: 1(866) 819-7111 (fromthe US), 0(800) 953-0329 (from the UK) or +(44) 1452 542 301 (fromoutside the US). Please quote "DryShips"
In case of any problem with the above numbers, please dial 1(866)223 0615 (from the US), 0(800) 694-1503 (from the UK) or +(44) 1452586-513 (from outside the US). Quote "DryShips"
A replay of the conference call will be available until November10, 2008. The United States replay number is 1(866) 247 4222; theinternational replay number is 0(800) 953-1533; from the UK or(+44) 1452-550 000 and access code required for the replay is:2133051#
Slides and Audio Webcast
There will also be a simultaneous live webcast over the Internet,through the DryShips Inc. website ( www.dryships.com ). Participants to the live webcast should register on the websiteapproximately 10 minutes prior to the start of the webcast.
About DryShips, Inc.
DryShips Inc., based in Greece, is an owner and operator of drybulkcarriers that operate worldwide. As of the day of this release,DryShips owns a fleet of 58 drybulk carriers comprising 11Capesize, 30 Panamax, 2 Supramax, 15 newbuilding drybulk vessels,with a combined deadweight tonnage of over 6.3 million tons and 2drilling rigs and 4 newbuilding drillships hulls.
DryShips Inc.'s common stock is listed on the NASDAQ Global Marketwhere it trades under the symbol "DRYS."
Visit our website at www.dryships.com
Forward-Looking Statement
Matters discussed in this release may constitute forward-lookingstatements. Forward-looking statements reflect our current viewswith respect to future events and financial performance and mayinclude statements concerning plans, objectives, goals, strategies,future events or performance, and underlying assumptions and otherstatements, which are other than statements of historical facts.
The forward-looking statements in this release are based uponvarious assumptions, many of which are based, in turn, upon furtherassumptions, including without limitation, management's examinationof historical operating trends, data contained in our records andother data available from third parties. Although DryShips Inc.believes that these assumptions were reasonable when made, becausethese assumptions are inherently subject to significantuncertainties and contingencies which are difficult or impossibleto predict and are beyond our control, DryShips Inc. cannot assureyou that it will achieve or accomplish these expectations, beliefsor projections.
Important factors that, in our view, could cause actual results todiffer materially from those discussed in the forward-lookingstatements include the strength of world economies and currencies,general market conditions, including changes in charterhire ratesand vessel values, changes in demand that may affect attitudes oftime charterers to scheduled and unscheduled drydocking, changes inDryShips Inc.'s operating expenses, including bunker prices,dry-docking and insurance costs, or actions taken by regulatoryauthorities, potential liability from pending or future litigation,domestic and international political conditions, potentialdisruption of shipping routes due to accidents and political eventsor acts by terrorists.
Risks and uncertainties are further described in reports filed byDryShips Inc. with the US Securities and Exchange Commission.