DryShips returns to profit

Athens-based DryShips Inc, an international provider of marine transportation services for drybulk and petroleum cargoes, as well as offshore deepwater drilling services through its subsidiary Ocean Rig UDW, has reported a net income of USD 16.7 million for the third quarter 2014, as compared to a net loss of USD 63.9 million for the same period 2013. The shipowner saw a 49% increase in quarterly revenues to USD 601.6m, the majority of which came
through the Ocean Rig’s drilling contracts. Adjusted EBITDA was USD 300.2 million for the third quarter of 2014, as compared to USD 174.8 million for the third quarter 2013. George Economou, Chairman and Chief Executive Officer of the Company, said:”We are delighted to have achieved the refinancing of our convertible notes on December 1.

 Our recent successful equity offering raised USD 333.7 million in net proceeds for the company. This equity offering, credit facilities from Nordea Bank and ABN AMRO and the unsecured credit line of USD 120 million from Ocean Rig covers the USD 700 million due outstanding. Our liquidity position on the shipping side has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which continue to perform above expectations for this time of the year. In addition, we expect a boost to our cash reserves from the recent dividend declared by Ocean Rig of which we expect to receive approximately USD 14.8 million on November 11, as well as from the excess of our financing sources outlined above over the underlying debt repayment. Insofar as the drybulk markets are concerned, the long awaited recovery in freight rates is happening and we believe this may lead to a sustainable recovery in charter rates through 2015. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has a large amount of spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.”