| BANGALORE, March 31
BANGALORE, March 31 DryShips Inc shares
inched up on Thursday, a day after the Greek dry bulk carrier
and oil and gas driller said it has finally secured financing
for all of its four new drillships.
After several delays, DryShips said it has received
commitments for a new $800 million loan and restructured its
$1.1 billion term loan facility from Deutsche Bank.
"The new financing arrangements are a step in the right
direction, as they remove one of the remaining hurdles for
DryShips as it works toward the full spin-off of Ocean Rig and
eventual public listing," Wells Fargo Securities analyst Michael
Two of the drillships are likely to be delivered this year
and DryShips, which recently forayed into the business of
transporting oil [ID:nSGE6BM0C2], said the much anticipated spin
off of its drilling division, Ocean Rig, will happen at the
earliest and that of the tanker business at the "right time".
"We remain committed to registering the Ocean Rig shares on
an exchange at the earliest and to build it into a competitive
player in the ultra deepwater sector," said Chief Executive
George Economou, an MIT alumnus with three decades of maritime
DryShips said that three out of its 38 drybulk carriers are
chartered to Korea Line (KLC) , a major South Korean
vessel charterer that had to file for receivership in January.
"While all three vessels are trading in the spot market, we
estimate the lost revenues from these charter defaults at
roughly $30-35 million in 2011," Credit Suisse analyst Gregory
The company's stock, which recently completed six years of
its Nasdaq listing, was trading 17 cents higher at $5.10 before
the bell. The stock has fallen 10 percent year to date.
Economou, a shipping magnate, added "we remain committed to
placing the company's tanker interests in a standalone entity at
the right time."
As a hedge against the vessel oversupply-led softness in the
freight market, DryShips had placed over 80 percent of its 2011
ship days fixed at about $33,800. Panamax vessels, which usually
transport 60,000-70,000 tonne cargoes of coal or grains, earned
about $16,173 on an average on Wednesday. [ID:nLDE72T25T]
But despite that, revenue from the dry bulk segment fell 5
percent as fleet utilization inched lower to 98.1 percent from
98.5 percent, offsetting the 33 percent rise from the drilling
The company on Wednesday reported higher fourth-quarter
profit as renewed rig contracts boosted profits.
October-December adjusted profit came in at 24 cents a
share, short of 26 cents Wall Street analysts were expecting.
(Reporting by Krishna Das in Bangalore; Editing by Maju Samuel)