Stock Update (NASDAQ:DRYS): DryShips Inc. Announces Acquisition of Four Modern Newcastlemax Vessels
DryShips Inc. (NASDAQ:DRYS) announced that it has entered into agreements with unaffiliated third parties to acquire four modern Newcastlemax bulk carriers of approximately 206,000 DWT and with an average age of 3.0 years. The Company expects to take delivery of the vessels before the end of June 2017.
The Company will finance the total gross purchase price of approximately $124 million using cash on hand. Current liquidity stands at approximately $455 million.
Two of the vessels will be employed under time charter contracts, while the other two will trade in the spot market.
George Economou, Chairman and Chief Executive Officer commented: “We are very pleased to have increased the size of our drybulk fleet by acquiring four modern sister vessels at historical low prices. Spot rates for drybulk vessels have continued to improve since the beginning of the year and our outlook for drybulk is positive given the modest order-book and the continued strength of the Chinese economy that generates demand for raw commodities. We continue to look at opportunities to diversify and grow our fleet with high quality tonnage and significant operating leverage.”
Shares of DryShips are currently trading at $1.40, 0.05 or 3.70%. DRYS has a 1-year high of $2227.20 and a 1-year low of $1.01. The stock’s 50-day moving average is $2.57 and its 200-day moving average is $4.20.
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.