Company Update (NASDAQ:DRYS): DryShips Inc. Acquires Its First Very Large Gas Carrier With A 5 Year Time Charter Attached To An Oil Major
DryShips Inc. (NASDAQ:DRYS) announced that it has acquired one Very Large Gas Carrier currently under construction at Hyundai Heavy Industries (“HHI”) for a purchase price of $83.5 million. The Company financed the closing price of $21.9 million by using part its undrawn liquidity under the $200.0 million New Sifnos Revolver, which now stands at $142.9 million. The $61.6 million balance of the purchase price for the VLGC will be payable in installments until the vessel’s delivery from HHI.
The VLGC will be employed on a fixed rate time charter with five years firm duration to an oil major. The charterer has options to extend the firm employment period by up to three years. The Company expects a total gross backlog associated with this time charter of up to $92.7 million including the optional periods, and expects to take delivery of the vessel in June 2017.
Mr. Anthony Kandylidis, President and Chief Financial Officer commented: “We are very pleased to have acquired our first high specification VLGC newbuilding opening a new era of investments since the restructuring of our balance sheet. The closing of our first investment in the gas carrier segment, which we believe will be highly accretive to earnings and cash flow, was financed by our New Sifnos Revolver evidencing once more Mr. George Economou’ s commitment to DryShips.” (Original Source)
Shares of DryShips are currently trading at $1.03, up $0.02 or nearly 2%. DRYS has a 1-year high of $278.40 and a 1-year low of $0.99. The stock’s 50-day moving average is $3.68 and its 200-day moving average is $3.43.
DryShips, Inc. engages in ocean transportation services for drybulk and petroleum cargoes. The company operates its business through three segments: Drybulk and Offshore support. The Drybulk segment provides drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries, which consists transportation and handling of Drybulk cargoes through ownership and trading of vessels. The Offshore Support segment consists of offshore support services to the global offshore energy industry through the operation of a diversified fleet of offshore support vessels.