DryShips Inc. Reports Financial and Operating Results for the Third Quarter Ended September 30, 2009
October 26, 2009, Athens, Greece. DryShips Inc. (NASDAQ: DRYS), a global provider of marine
transportation services for drybulk cargoes and offshore oil deep water drilling, today announced its
unaudited financial and operating results for the third quarter and nine month period ended September
30, 2009.
Third Quarter 2009 Financial Highlights
For the third quarter of 2009, the Company reported a net profit of $35.6 million or $0.12 basic
and diluted profit per share. Included in the third quarter 2009 results is a loss of $39.3 million or
$0.15 per share associated with the valuation of the Company’s interest rate swaps. Excluding this
item, net income would amount to $74.9 million or $0.27 per share.
- Basic earnings per share for the third quarter of 2009 include a non-cash accrual for the
cumulative dividends on the Series A Convertible Preferred Stock, amounting to $4.0
million, which reduces the income available to common shareholders (basic earnings per
share is calculated as net income less accrued dividends on preferred stock divided by
weighted average number of common shares outstanding).
George Economou, Chairman and Chief Executive Officer of the Company commented:
“We are pleased to report another quarter of profitable operating results for DryShips as both our drilling
and drybulk units continued to perform at high utilization rates. We are particularly pleased with the high
utilization rates achieved by the Eirik Raude, which is drilling off Ghana at the Jubilee field for Tullow Oil.
The Leiv Eiriksson is expected to complete its assignment with Shell in the North Sea during October and
commence mobilization for drilling operations in the Black Sea under a 3-year contract for Petrobras.
Most economic indicators for the world economy seem to indicate the end of the recession and we are also
seeing the signs of recovery from countries besides China and India. The stimulus plan implemented by the
Chinese government earlier in the year has by no means played itself out, as the majority of this money
went to infrastructure development which is medium to long term projects. While drybulk shipping
demand is projected to remain strong for the coming years, the large orderbook remains a cause for
concern, especially for 2010. Actual deliveries in the first nine months of 2009 were much smaller than
were anticipated at the beginning of the year and offer some hope that cancellations and delays will
alleviate the projected oversupply.
Our drybulk fleet is now virtually fully fixed for the remainder of 2009 and 2010 and 77% fixed for 2011
at healthy levels and we are prepared to leverage the volatility in freight rates in the future through further
vessel acquisitions. DryShips now has $1.44 billion in fixed EBITDA from its dry bulk and drilling units
over the next 2.25 years and we are well positioned to take advantage of acquisition opportunities as they
arise.”
Financial Review: 2009 Third Quarter
The Company recorded a net profit of $35.6 million, or $0.12 basic and diluted profit per share for
the three-month period ended September 30, 2009, as compared to a net profit of $180.0 million, or
$4.13 basic and diluted earnings per share for the three-month period ended September 30, 2008.
EBITDA, which is defined and reconciled later in this press release, was $104.8 million for the third
quarter of 2009 as compared to $258.5 million for the same period in 2008.
Included in the third quarter results is a loss of $39.3 million or $0.15 per share associated with the
valuation of the Company’s interest rate swaps. Excluding this item, net income would amount to
$74.9 million or $0.27 per share.
For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) decreased by $113.4 million to $114.8 million for the three-month period ended September 30, 2009, as compared to $228.2 million for the three-month period ended September 30, 2008. The decrease is attributable to the substantially lower freight market during the third quarter of 2009 as compared to the third quarter of 2008. For the offshore drilling segment, revenues from drilling contracts amounted to $107.6 million for the three-month period ended September 30, 2009 as compared to $88.1 for the same period in 2008.
Total vessel and rig operating expenses and total depreciation and amortization decreased to $56.2 million and $49.4 million, respectively, for the three-month period ended September 30, 2009 from $58.3 million and $50.4 million, respectively, for the three-month period ended September 30, 2008. Total general and administrative expenses decreased to $22.9 million from $27.8 million during the comparative periods.
Interest and finance costs net of interest income decreased to $16.3 million for the three-month period ended September 30, 2009, compared to $27.4 million for the three-month period ended September 30, 2008. This decrease is primarily attributable to decreased average interest rate levels during the three-month period ended September 30, 2009, as compared to the same period in 2008. About DryShips Inc. DryShips Inc., based in Greece, is an owner and operator of drybulk carriers and offshore oil deep water drilling that operate worldwide. As of the day of this release, DryShips owns a fleet of 39 drybulk carriers comprising seven Capesize, 30 Panamax and two Supramax, with a combined deadweight tonnage of over 3.4 million tons, 2 ultra deep water semisubmersible drilling rigs and 4 ultra deep water newbuilding drillships.
DryShips Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "DRYS".
Visit the Company’s website at www.dryships.com
DryShips Inc.