DryShips Inc. (DRYS), Sino-Global Shipping America, Ltd. (SINO): What’s New In The Shipping World
DryShips Inc. (NASDAQ:DRYS) announced that it has exercised its first option under the previously announced option agreement to acquire one Very Large Gas Carrier currently under construction at Hyundai Heavy Industries (“HHI”) for a purchase price of $83.5 million. Part of the purchase price (abt. 25%) will be paid on closing, expected within January, with the balance 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 the total gross backlog associated with this time charter to be $54.0 million, or $92.7 million including the optional periods, and expects to take delivery of the vessel in June 2017.
“We are very pleased to have declared our first option to purchase a high specification VLGC with long term employment to an oil major at above market rates. This acquisition allows us to deploy the Company’s available liquidity immediately and will be highly accretive to earnings and cash flow. This marks the first acquisition of the Company since the restructuring of its balance sheet and our first investment in the gas carrier segment which we believe has very positive long-term fundamentals,” CEO George Economou commented.
DryShips shares closed today at $2.73, down $0.30 or nearly 10%,
Sino-Global Shipping America, Ltd.
Sino-Global Shipping America, Ltd. (NASDAQ:SINO) announced that it has entered into a joint venture agreement with Jetta Global Logistics Inc. Pursuant to the agreement, short haul transportation services will be provided for all shipping requests received via the Company’s new full service logistic platform.
Sino-Global’s proprietary logistics management application was launched in December 2016 to seamlessly connect shipping customers with short to long haul trucking transportation services throughout the United States. The Company designed the website portal to enhance productivity and convenience for customers and partners while simultaneously providing Sino-Global with a steady fee income from providing the connection.
“The joint venture agreement is a step forward in assisting our customers throughout the entire logistic supply chain. Through the agreement, we are able to ensure that our customers in China will be connected with short haul trucking transportation services for all shipments arriving in New Jersey and New York ports. The agreement will leverage our new logistic web-based application and the Company will collect a percentage of the total profits for the connection. We intend to continue to seek additional customers and strategic partnerships that will further supplement our end to end global logistics services in the future and for the long-term,” CEO Lei Cao stated.
Sino-Global Shipping shares closed today at $14.24, up $0.86 or 6.43%.