-- The Company reported Net Income of $103.5 million or $2.92 per share,
for the third quarter of 2007. Included in the third quarter results is a
capital gain on the sale of 2 vessels of $19.2 million or $0.54 per share.
Excluding this gain, Net Income would amount to $84.3 million or $2.38 per
share.
-- For the third quarter of 2007 the Company reported EBITDA, excluding
vessel gains, of $117.3 million, which is the highest EBITDA reported in a
single quarter since the Company's inception(1).
-- In September 2007 the Company declared its tenth consecutive quarterly
cash dividend of $0.20 per common share which was paid on October 31, 2007.
George Economou, the Chairman and Chief Executive Officer of DryShips Inc.,
commented:
"We are pleased to report a third consecutive quarter with record EBITDA
reflecting the strength of the current drybulk market. We continue to
actively manage our fleet portfolio with a goal to ensure the longevity and
quality of our fleet's earning capacity. Once the recently announced sale
and purchase activity has been completed by the second quarter of 2008, the
Company's fleet will consist of a total of 46 vessels (including 8
newbuildings) with an average age of 8.5 years, well below the industry
average of about 13 years.
"We remain committed to implementing our chartering philosophy. By having
the majority of the Company's vessels operating in the spot market we are
able to take advantage of market opportunities as they arise. As of today,
36% of our fleet operating days for the fourth quarter of 2007 remain
unfixed.
"The outlook for 2008 remains positive. We will have approximately 16% more
fleet operating days compared to 2007 and approximately 85% of the fleet
operating days unfixed. With overall debt leverage of just below 25%
adjusted for the market values of its vessels, DryShips is in a unique
position to seek growth opportunities as they arise."
Third Quarter 2007 Results
For the third quarter ended September 30, 2007, Time charter equivalent
revenues (Voyage revenues less voyage expenses) amounted to $140.5 million
as compared to $56.2 million for the third quarter ended September 30,
2006. Operating Income was $118.2 million for the quarter ended September
30, 2007, as compared to $15.7 million for the quarter ended September 30,
2006. Net Income for the third quarter ended September 30, 2007 was $103.5
million or $2.92 Earnings Per Share calculated on 35.49 million weighted
average basic and diluted shares outstanding as compared to $3.5 million or
$0.11 Earnings Per Share calculated on 33.23 million weighted average
basic and diluted shares outstanding for the quarter ended September 30,
2006. EBITDA for the third quarter of 2007 was $136.5 million as compared
to $35.8 million in the quarter ended September 30, 2006.(1)
An average of 33.7 vessels were owned and operated during the third quarter
of 2007, earning an average Time Charter Equivalent, or TCE, rate of
$45,525 per day as compared to an average of 29.8 vessels owned and
operated during the third quarter of 2006 earning an average TCE rate of
$20,808 per day.
Nine Months ended September 30, 2007 Results
For the nine months ended September 30, 2007, Time charter equivalent
revenues (Voyage revenues less voyage expenses) amounted to $327.4 million
as compared to $158.5 million for the nine months ended September 30, 2006.
Operating Income was $316.2 million for the nine month period ended
September 30, 2007, as compared to $50.3 million for the nine month period
ended September 30, 2006. Net Income for the nine months ended September
30, 2007 was $280.2 million or $7.89 Earnings Per Share calculated on 35.49
million weighted average basic and diluted shares outstanding as compared
to $20.8 million or $0.66 Earnings Per Share calculated on 31.34 million
weighted average basic and diluted shares outstanding for the nine months
ended September 30, 2006. EBITDA for the nine month period ended September
30, 2007 was $371.5 million as compared to $95.3 million for the nine month
period ended September 30, 2006.(1)
An average of 32.8 vessels were owned and operated during the nine months
ended September 30, 2007, earning an average or TCE rate of $37,108 per day
as compared to an average of 28.4 vessels owned and operated during the
nine months ended September 30, 2006 earning an average TCE rate of $20,902
per day.
Drydock related expenses
During the third quarter of 2007, one vessel completed drydocking for a
total cost of $0.5 million. Such costs are capitalized and amortized until
the vessels' next drydock.
(1) Please see later in this release for a reconciliation of EBITDA
to net cash provided by Operating activities.
Capitalization
On September 30, 2007, debt to total capitalization (debt, net of deferred
financing fees and stockholder's equity) was 53.81% and net debt (total
debt less cash and cash equivalents) to total capitalization was 51.43%.
As of September 30, 2007, the Company had a total liquidity of
approximately $74.7 million.
Financing activities
On August 30, 2007 the Company concluded a bridge facility of up to $30.1
million with HSH Nordbank. The loan bears interest at LIBOR plus 1.5% and
will be repaid in one installment during the first quarter of 2008.
On October 2, 2007 the Company concluded a loan agreement of up to $35
million with Deutsche Schiffsbank in order to partly finance the
acquisition cost of the second hand vessel MV Clipper Gemini. The loan
bears interest at LIBOR plus 0.9% and will be repaid in thirty-six
quarterly installments starting in the first quarter of 2008.
On October 5, 2007 the Company concluded a loan agreement of up to $90
million with Piraeus Bank in order to partly finance the acquisition cost
of the second hand vessels MV Samatan and MV VOC Galaxy. The loan bears
interest at LIBOR plus between 0.95% and 1.05% depending on corporate
leverage and will be repaid in thirty-two quarterly installments starting
in the first quarter of 2008.
As of November 6, 2007 the Company had a total of $794.2 million in debt
outstanding under its main credit facility with HSH Nordbank.
Fleet Developments
Vessels Acquired and Delivered
On August 29, 2007, the Company took delivery of the MV Ecola, a 2001 built
second-hand 73,931 dwt Panamax drybulk carrier, which it had agreed to
acquire on November 23, 2006, for a purchase price of $39.7 million.
On October 9, 2007, the Company took delivery of the MV Clipper Gemini, a
2003 built second-hand 51,201 dwt Supramax drybulk carrier, which it had
agreed to acquire on June 8, 2007, for a purchase price of $50.2 million.
The vessel commenced a bareboat charter back to the Seller for a period of
between 13 and 15 months at a daily bareboat rate of $27,000.
On October 17, 2007, the Company took delivery of the MV Samatan, a 2001
built second-hand 74,823 dwt Panamax drybulk carrier, which it had agreed
to acquire on August 15, 2007, for a purchase price of $71.0 million.
Vessels Sold - To be delivered
On October 1, 2007 the Company entered into an agreement to sell the MV
Matira, a 1994 built, 45,863 dwt Handymax drybulk carrier for a sale price
of $46.5 million with delivery to the new owners scheduled to take place in
the first quarter of 2008. The Company expects to realize a gain of
approximately $24.6 million.
Newbuilding Acquisitions - To be delivered
On October 1, 2007 the Company entered into an agreement, with an
unaffiliated third party, to acquire a resale contract for a 170,000 dwt
Capesize bulk carrier under construction in South Korea, for a price of
$147.5 million. The vessel is expected to be delivered during the second
quarter of 2008.
The above vessel is being acquired as re-sale from the sellers and delivery
to DryShips is expected to be "back to back" with the delivery of the
vessel to the seller by the shipyard.
Gain on Vessel Disposals
As of September 30, 2007 DryShips has realized an aggregate gain on vessel
disposals of $103.5 million or $2.92 per share and expects to realize
additional vessel gains for the remainder of the year in the amount of
approximately $31.0 million or $0.87 per share. For the whole of 2007
DryShips expects to realize a total gain on vessel disposals of
approximately $134.5 million or $3.79 per share.
When all the second hand acquisitions and disposals are concluded by the
end of the second quarter of 2008, DryShips' fleet will include 46 drybulk
carriers comprising 6 Capesize, 31 Panamax, 2 Supramax, and 7 newbuilding
drybulk vessels, with a combined deadweight capacity of approximately 4.2
million deadweight tons, and an average age of 8.4 years.
Fleet Employment Developments
The Company has entered its 2004 built 73,601 dwt Panamax bulk carrier MV
Padre into a time charter for a period of about 12 months at a daily rate
of $81,000. The vessel commenced its new charter on November 6, 2007.
The Company has entered its 2000 built 75,706 dwt Panamax bulk carrier MV
Coronado into a time charter for a period of about 12 months at a daily
rate of $81,750. The vessel commenced its new charter on November 2, 2007.
The Company has entered its 1998 built 72,495 dwt Panamax bulk carrier MV
Primera into a time charter for a period of about 12 months at a daily rate
of $78,600. The vessel commenced its new charter on October 19, 2007.
The Company has entered its 1996 built 70,349 dwt Panamax bulk carrier MV
Iguana into a time charter for a period of about 12 months at a daily rate
of $77,000. The vessel is expected to commence its new charter on or about
November 13, 2007.
As of November 6, 2007, approximately 36% and 85% of the total vessel
operating days for fourth quarter 2007 and calendar year 2008 respectively
remain unfixed.
Capital expenditures
The Company expects to incur the following capital expenditures associated
with vessel drydocking costs:
Fourth quarter
2007 2008
Number of vessels 1 5
Expected cost in USD millions 0.5 4.5
Off-hire days 15 125
Such costs are capitalized and amortized until the vessel's next drydock.
The actual days and expenses in connection with vessel drydockings will
vary based on the shipyard schedule, weather, condition of the vessel and
other factors.
In addition the Company expects to incur expenses for peripheral supplies
and other repair works while the vessels will be in drydock which will be
included in vessel operating expenses for the respective quarter.
Dividend Payment
In September 2007, DryShips declared its tenth consecutive quarterly cash
dividend of $0.20 per common share which was paid on October 31, 2007 to
stockholders of record on October 15, 2007. Since the Company's IPO in
February 2005, DryShips has paid total dividends of $2.00 per common share.
Fleet Data
Third Quarter 2007
Total TCE revenue increased during the third quarter of 2007 compared to
the third quarter of 2006, primarily as a result of an increase in the
average number of vessels operated, from an average of 29.8 vessels in the
third quarter of 2006 to 33.7 vessels in the third quarter of 2007, and an
increase in the daily average TCE rate from $20,808 in the third quarter of
2006 to $45,525 in the third quarter of 2007.
Vessel operating expenses increased to $15.3 million for the third quarter
of 2007 compared to $11.9 million for the third quarter of 2006. The
increase is attributable to the increase in the number of vessels operated
from an average of 29.8 vessels for the third quarter of 2006 to 33.7
vessels for the third quarter of 2007 and costs typically associated with
the delivery of new vessels.
Depreciation and amortization increased to $20.8 million in the third
quarter of 2007 compared to $15.5 million in the third quarter of 2006.
This was a direct result of the increase in the Company's fleet from an
average of 29.8 vessels in the third quarter of 2006 to an average of 33.7
vessels in the third quarter of 2007.
Management fees increased to $2.4 million in the third quarter of 2007
compared to $1.7 million in the third quarter of 2006 as a direct result of
the increase in the number of fleet calendar days from 2,738 in the third
quarter of 2006 to 3,098 in the third quarter of 2007 due to the growth of
the fleet and the appreciation of the Euro versus the USD.
General and administrative expenses increased to $3.0 million in the third
quarter of 2007 from $1.8 million in the third quarter of 2006. The
increase results mainly from increased legal and audit fees, fees relating
to compliance with the requirements of the Sarbanes-Oxley Act of 2002 and
the appreciation of the Euro versus the USD.
Nine Months ended September 30, 2007
Total TCE revenue increased during the nine months ended September 30, 2007
compared to the nine months ended September 30, 2006, primarily as a result
of an increase in the average number of vessels operated, from an average
of 28.4 vessels in the nine months ended September 30, 2006 to 32.8 vessels
in the nine months ended September 30, 2007, and an increase in the daily
average TCE rate from $20,902 in the nine months ended September 30, 2006
to $37,108 in the nine months ended September 30, 2007.
Vessel operating expenses increased to $44.3 million during the nine months
ended September 30, 2007 compared to $33.5 million during the nine months
ended September 30, 2006. The increase is attributable to the increase in
the number of vessels operated from an average of 28.4 vessels during the
nine months ended September 30, 2006 to 32.8 vessels during the nine months
ended September 30, 2007 and costs typically associated with the delivery
of new vessels.
Depreciation and amortization increased to $56.4 million during the nine
months ended September 30, 2007 compared to $43.7 million during the nine
months ended September 30, 2006. This was a direct result of the increase
in the Company's fleet from an average of 28.4 vessels during the nine
months ended September 30, 2006 to an average of 32.8 vessels during the
nine months ended September 30, 2007.
Management fees increased to $7.0 million in the nine months ended
September 30, 2007 compared to $4.7 million in the nine months ended
September 30, 2006 as a direct result of the increase in the number of
fleet calendar days from 7,743 during the nine months ended September 30,
2006 to 8,965 during the nine months ended September 30, 2007 due to the
growth of the fleet and the appreciation of the Euro versus the USD.
General and administrative expenses increased to $6.9 million during the
nine months ended September 30, 2007 from $3.8 million during the nine
months ended September 30, 2006. The increase results mainly from increased
legal and audit fees, fees relating to compliance with the requirements of
Sarbanes-Oxley Act of 2002 and the appreciation of the Euro versus the USD.
Third Quarter 2007
(Dollars in thousands, except
Average Daily Results - unaudited) Three Months Three Months
Ended Ended
September 30, September 30,
2007 2006
============ ============
Average number of vessels (1) 33.7 29.8
Total voyage days for fleet (2) 3,086 2,700
Total calendar days for fleet (3) 3,098 2,738
Fleet Utilization (4) 99.6% 98.6%
Time charter equivalent (5) 45,525 20,808
Capesize 61,163 29,542
Panamax 43,174 19,219
Handymax 30,521 15,038
Vessel operating expenses (daily) (6) 4,932 4,344
Management fees (daily) 780 625
General and administrative expenses (daily) (7) 973 661
Total vessel operating expenses (daily) (8) 6,685 5,630
Nine Months ended September 30, 2007
(Dollars in thousands, except
Average Daily Results - unaudited) Nine Months Ended Nine Months Ended
September 30, 2007 September 30, 2006
================== ==================
Average number of vessels (1) 32.8 28.4
Total voyage days for fleet (2) 8,823 7,582
Total calendar days for fleet (3) 8,965 7,743
Fleet Utilization (4) 98.4% 97.9%
Time charter equivalent (5) 37,108 20,902
Capesize 52,536 31,033
Panamax 35,331 18,913
Handymax 24,016 14,751
Vessel operating expenses (daily)
(6) 4,941 4,325
Management fees (daily) 787 602
General and administrative expenses
(daily) (7) 771 493
Total vessel operating expenses
(daily) (8) 6,499 5,420
(1) Average number of vessels is the number of vessels that constituted our
fleet for the relevant period, as measured by the sum of the number of days
each vessel was a part of our fleet during the period divided by the number
of calendar days in that period.
(2) Total voyage days for the fleet are the total days vessels were owned
by us for the relevant period net of off hire days associated with major
repairs, drydockings or special or intermediate surveys.
(3) Calendar days are the total days the vessels were owned by us for the
relevant period including off hire days associated with major repairs,
drydockings or special or intermediate surveys.
(4) Fleet utilization is the percentage of time that our vessels were
available for revenue generating voyage days, and is determined by dividing
voyage days by fleet calendar days for the relevant period.
(5) Time charter equivalent, or TCE, is a measure of the average daily
revenue performance of a vessel on a per voyage basis. Our method of
calculating TCE is consistent with industry standards and is determined by
dividing voyage revenues (net of voyage expenses) by voyage days for the
relevant time period. Voyage expenses primarily consist of port, canal and
fuel costs that are unique to a particular voyage, which would otherwise be
paid by the charterer under a time charter contract, as well as
commissions. TCE is a standard shipping industry performance measure used
primarily to compare period-to-period changes in a shipping company's
performance despite changes in the mix of charter types (i.e., spot
charters, time charters and bareboat charters) under which the vessels may
be employed between the periods.
(6) Daily vessel operating expenses, which includes crew costs, provisions,
deck and engine stores, lubricating oil, insurance, maintenance and repairs
is calculated by dividing vessel operating expenses by fleet calendar days
for the relevant time period.
(7) Daily general and administrative expense is calculated by dividing
general and administrative expense by fleet calendar days for the relevant
time period
(8) Total vessel operating expenses, or TVOE, is a measurement of our total
expenses associated with operating our vessels. TVOE is the sum of vessel
operating expenses, management fees and general and administrative
expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days
for the relevant time period.
TCE Rates:
The following table reflects the calculation of our TCE rates for the
periods then ended:
(Dollars in Three Three Nine Nine
thousands) Months Ended Months Ended Months Ended Months Ended
Sept. 30, 2007 Sept. 30, 2006 Sept. 30, 2007 Sept. 30, 2006
------------- ------------- ------------- -------------
Voyage revenues 150,011 59,968 349,182 169,324
Voyage expenses (9,522) (3,787) (21,779) (10,843)
------------- ------------- ------------- -------------
Time charter
equivalent
revenues 140,489 56,181 327,403 158,481
============= ============= ============= =============
Total voyage
days for fleet 3,086 2,700 8,823 7,582
Time charter
equivalent
(TCE) rate 45,525 20,808 37,108 20,902
DryShips Inc. Fleet
As at September 30, 2007, the Company's fleet consisted of 34 vessels.
During the three month period ended September 30, 2007, the Company
operated the following types of vessels:
Capesize Panamax Handymax Total
-------- ------- -------- -----
Average number of vessels
during period 5.00 27.67 1.00 33.67
Number of vessels at end
of period 5.00 28.00 1.00 34.00
Dwt at end of period 792,657 2,054,965 45,863 2,893,485
DWT as percentage of
total fleet 27.39% 71.02% 1.59% 100.00%
During the nine month period ended September 30, 2007, the Company operated
the following types of vessels:
Capesize Panamax Handymax Total
-------- ------- -------- -----
Average number of vessels
during period 4.69 25.97 2.18 32.84
Number of vessels at end
of period 5.00 28.00 1.00 34.00
Dwt at end of period 792,657 2,054,965 45,863 2,893,485
DWT as percentage
of total fleet 27.39% 71.02% 1.59% 100.00%
Financial Statements
The following are DryShips Inc.'s Unaudited Condensed Consolidated
Statements of Income for the three and nine-month periods ended September
30, 2007 and September 30, 2006:
(Dollars in thousands, except
per share data - unaudited) Nine Nine Three Three
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
---------- ---------- ---------- ----------
INCOME STATEMENT DATA
Voyage revenues $ 349,182 $ 169,324 $ 150,011 $ 59,968
Loss on forward freight
agreements 22,473 9,610
Voyage expenses 21,779 10,843 9,522 3,787
Vessel operating expenses 44,296 33,490 15,279 11,894
Depreciation and amortization 56,423 43,749 20,826 15,475
Gain on sale of vessels -103,512 -19,229
Management fees 7,057 4,666 2,416 1,712
General and administrative 6,911 3,814 3,016 1,810
---------- ---------- ---------- ----------
Operating Income 316,228 50,289 118,181 15,680
---------- ---------- ---------- ----------
Interest and finance costs, net -34,887 -30,703 -12,125 -16,779
Other, net -1,155 1,233 -2,508 4,612
---------- ---------- ---------- ----------
NET INCOME $ 280,186 $ 20,819 $ 103,548 $ 3,513
========== ========== ========== ==========
Basic and fully diluted
earnings per share $ 7.89 $ 0.66 $ 2.92 $ 0.11
========== ========== ========== ==========
Weighted average basic and
diluted shares outstanding 35,490,097 31,343,241 35,490,097 33,233,421
---------- ---------- ---------- ----------
The following are DryShips Inc.'s Consolidated Balance Sheets as at
September 30, 2007 (unaudited) and December 31, 2006 (audited):
(Expressed in thousands of U.S. Dollars -
except for share and per share data)
December 31, September 30,
2006 2007
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 2,537 47,949
Restricted cash 6,614 6,775
Accounts receivable trade 3,187 6,814
Insurance claims 671 4,816
Due from related parties 3,353 6,690
Inventories 2,571 2,873
Prepayments and advances 5,568 7,550
Fair value of above market acquired time
charter 1,335 -
Financial instruments 39
------------- -------------
Total current assets 25,875 83,467
------------- -------------
FIXED ASSETS, NET:
Advances for vessels under construction and
acquisitions 27,380 111,444
Vessels, net 1,084,924 1,340,657
------------- -------------
Total fixed assets, net 1,112,304 1,452,101
------------- -------------
OTHER NON CURRENT ASSETS:
Deferred charges, net 6,200 2,495
Restricted cash 20,000 20,000
Financial instruments 946 564
Other 2,848 2,215
------------- -------------
Total assets 1,168,173 1,560,842
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt 71,412 110,198
Accounts payable 11,423 8,261
Due to related parties 25,086 -
Accrued liabilities 6,326 10,905
Deferred revenue 12,270 10,131
Financial Instruments 2,625 -
Other current liabilities 202 184
Dividends payable - 7,098
------------- -------------
Total current liabilities 129,344 146,777
------------- -------------
NON CURRENT LIABILITIES:
Fair value of below market acquired time
charter - 2,385
Long term debt, net of current portion 587,330 708,538
Financial Instruments - 89
Other 607 367
------------- -------------
Total non current liabilities 587,937 711,379
------------- -------------
COMMITMENTS AND CONTIGENCIES - -
STOCKHOLDERS' EQUITY:
Preferred stock, $ 0.01 par value; 30,000,000
shares authorized, none issued. - -
Common stock, $0.01 par value; 75,000,000
shares authorized; 35,490,097 shares issued
and outstanding. 355 355
Additional paid-in capital 327,446 327,446
Retained earnings 123,091 374,885
------------- -------------
Total stockholders' equity 450,892 702,686
------------- -------------
Total liabilities and stockholders'
equity 1,168,173 1,560,842
============= =============
EBITDA Reconciliation
DryShips Inc. considers EBITDA to represent net income before interest,
taxes, depreciation and amortization. EBITDA does not represent and should
not be considered as an alternative to net income or cash flow from
operations, as determined by United States generally accepted accounting
principles, or U.S. GAAP, and our calculation of EBITDA may not be
comparable to that reported by other companies. EBITDA is included herein
because it is a basis upon which the Company assesses its liquidity
position, it is used by our lenders as a measure of our compliance with
certain loan covenants and because the Company believes that it presents
useful information to investors regarding a company's ability to service
and/or incur indebtedness.
The following table reconciles net cash from operating activities to
EBITDA:
(Dollars in thousands) 3 Months Ended 3 Months Ended
September 30, 2007 September 30, 2006
------------------ ------------------
Net cash provided by operating
activities 102,409 27,575
Net (decrease) / increase in
current assets 2,105 (12,826)
Net decrease / (increase) in
current liabilities, excluding
currrent portion of long term debt 1,162 9,486
Gain on sale of vessels 19,229
Amortization of deferred revenue 1,069 (1,750)
Amortization of free lubricants 88 203
Change in fair value of derivatives (1,648) (17,049)
Net Interest expense 12,125 16,779
Amortization of deferred financing
costs included in interest expense 230 (182)
Payments for dry-docking costs (318) 668
Freight Forward Agreements 0 12,863
------------------ ------------------
EBITDA 136,451 35,767
================== ==================
(Dollars in thousands) 9 Months Ended 9 Months Ended
September 30, 2007 September 30, 2006
------------------ ------------------
Net cash provided by operating
activities 219,489 73,442
Net (decrease) / increase in
current assets 12,760 1,824
Net decrease / (increase) in
current liabilities, excluding
currrent portion of long term debt (4,745) 3,965
Gain on sale of vessels 103,512 -
Amortization of deferred revenue 3,724 (1,598)
Amortization of free lubricants 258 120
Change in fair value of derivatives 2,115 (13,927)
Net interest expense 34,887 30,703
Amortization of deferred financing
costs included in interest expense (1,732) (3,290)
Payments for dry-docking costs 1,228 4,032
------------------ ------------------
EBITDA 371,496 95,271
================== ==================
Fleet List
The table below describes in detail our fleet development and current
employment profile as of November 6, 2007:
Gross
Year Current Rate Redelivery
Built DWT Type Employment per Day Earliest Latest
Capesize:
Manasota 2004 171,061 Capesize Spot $ 166,000 Prompt Prompt
Alameda 2001 170,269 Capesize TC $ 73,000 Jan-08 Mar-08
Samsara 1996 150,393 Capesize TC $ 55,500 Prompt Prompt
Netadola 1993 149,475 Capesize TC $ 52,500 Prompt Prompt
Brisbane 1995 151,066 Capesize Spot $ 95,000 Prompt Prompt
9.0 792,264 5
Panamax:
Heinrich
Oldendorff 2001 73,931 Panamax BB $ 28,000 Apr-08 Jun-08
Ligari 2004 75,583 Panamax TC $ 31,550 Prompt Prompt
Padre 2004 73,601 Panamax TC $ 81,000 Oct-08 Nov-08
Mendocino 2002 76,623 Panamax TC $ 37,500 Prompt Dec-07
Maganari 2001 75,941 Panamax TC $ 18,400 Apr-08 Jul-08
Coronado 2000 75,706 Panamax TC $ 81,750 Sep-08 Oct-08
Ocean
Crystal 1999 73,688 Panamax TC $ 40,000 Prompt Prompt
Primera 1998 72,495 Panamax TC $ 78,600 Sep-08 Oct-08
La Jolla 1997 72,126 Panamax TC $ 46,000 Prompt Dec-07
Lanzarote 1996 73,008 Panamax TC $ 43,750 Prompt Prompt
Iguana 1996 70,349 Panamax TC $ 77,000 Oct-08 Nov-08
Waikiki 1995 75,473 Panamax TC $ 36,750 Jan-08 Mar-08
Sonoma 2001 74,786 Panamax Baumarine $ 60,941
Toro 1995 73,034 Panamax Baumarine $ 58,742
Lacerta 1994 71,862 Panamax Baumarine $ 59,176
Catalina 2005 74,432 Panamax Spot $ 80,000 Prompt Prompt
Majorca 2005 74,364 Panamax Spot $ 72,000 Prompt Prompt
Bargara 2002 74,832 Panamax Spot $ 75,300 Prompt Prompt
Capitola 2001 74,832 Panamax Spot $ 80,000 Prompt Prompt
Samatan 2001 74,823 Panamax Spot $ 80,000 Prompt Prompt
Ecola 2001 73,931 Panamax Spot $ 82,000 Prompt Prompt
Redondo 2000 74,716 Panamax Spot $ 85,000 Prompt Prompt
Marbella 2000 72,561 Panamax Spot $ 61,000 Prompt Prompt
Xanadu 1999 72,270 Panamax Spot $ 84,500 Prompt Prompt
Menorca 1997 71,662 Panamax Spot $ 75,000 Prompt Prompt
Formentera 1996 70,002 Panamax Spot $ 72,000 Prompt Prompt
Solana 1995 75,100 Panamax Spot $ 88,750 Prompt Prompt
Paragon 1995 71,259 Panamax Spot $ 64,000 Prompt Prompt
Tonga 1984 66,798 Panamax Spot $ 70,500 Prompt Prompt
8.2 2,129,788 29
Handymax:
Matira 1994 45,863 Handymax TC $ 32,300 Oct-07 Dec-07
13.0 45,863 1
Supramax
Clipper
Gemini 2003 51,201 Supramax BB $ 27,000 Nov-08 Jan-09
4 51,201 1
Newbuildings:
TBN 2007 170,000 Capesize
TBN 2009 180,000 Capesize
TBN 2009 180,000 Capesize
TBN 2010 180,000 Capesize
TBN 2010 82,000 Kamsrmax
TBN 2010 82,000 Kamsrmax
TBN 2009 75,000 Panamax
TBN 2010 75,000 Panamax
1,024,000 8
Total Fleet 8.4 4,043,116 44
1. For spot vessels the TCE rate is for the current voyage
2. Prompt implies current month
3. For vessels trading in the Baumarine pool the TCE rate is the Pool's
estimate for earnings in the month of October
4. The quoted rates are not indications of future earnings and the Company
gives no assurance or guarrantee of future rates.
Conference Call and Webcast: November 7, 2007, at 10 a.m. EST DryShips management team will host a conference call on November 7, 2007, at 10 a.m. Eastern Time to discuss the Company's financial results for the third quarter and nine months ended September 30, 2007. Conference Call details: Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819- 7111 (from the US), 0(800) 953 953- 0329 (from the UK) or +(44) 1452 542 301 (from outside the US). Please quote "DryShips." In case of any problem with the above numbers, please dial 1(866) 223 0615 (from the US), 0(800) 694- 1503 (from the UK) or +(44) 1452 586 -513 (from outside the US). Quote "DryShips." A replay of the conference call will be available until November 14, 2007. The United States replay number is 1(866) 247 4222; the international replay number is (0(800) 953 -1533; from the UK or (+44) 1452- 550 000 and the access code required for the replay is: 2133051#. Slides and audio webcast: There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. About DryShips Inc. DryShips Inc. is an international provider of drybulk cargo marine transportation services. Headquartered in Athens, Greece, DryShips owns and operates a fleet of 44 drybulk carriers comprising 5 Capesize, 29 Panamax, 1 Supramax, 1 Handymax and 8 newbuilding drybulk vessels, with a combined capacity of approximately 4.0 million deadweight tons. DryShips Inc.'s common stock is listed on NASDAQ Global Market where it trades under the symbol "DRYS." Visit our website at www.dryships.com Forward-Looking Statement Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although DryShips Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, DryShips Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in DryShips Inc.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by DryShips Inc. with the US Securities and Exchange Commission.
Contact Information: Investor Relations / Media: Nicolas Bornozis Capital Link, Inc. (New York) Tel. 212-661-7566 E-mail: nbornozis@capitallink.com