DryShips Inc (NASDAQ:DRYS) Eyes More Losses

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DryShips Inc (NASDAQ:DRYS) shares are down more than 10% in pre-market trading at $3.80. The company has a market cap of $72.84 million at 20.57 million shares outstanding. Share prices have been trading in a 52-week range of $4.20 to $114,240.15.

Talks of bankruptcy are currently weighing on DryShips Inc shares. A couple of days back, the company announced a 1-for-5 reverse stock split of the company’s issued common shares that was approved by shareholders in their May meeting. The common shares will begin trading on a split-adjusted basis on the Nasdaq Capital Market as of the opening of trading on June 22, 2017 under the existing trading symbol “DRYS”.

This has cast doubt on CEO George Economou’s ability to steer the company away from shareholder value destruction. Note that the company has also received firm commitment for a senior secured credit facility of up to $150 million with ABN AMRO bank and KEXIM to partly finance the delivery of its four Very Large Gas Carriers.

“We have come a long way since a year ago, when we were in discussions with commercial lenders about the restructuring of our debt. We are pleased that we have put all this behind us and grateful for the support of ABN AMRO and KEXIM in arranging our first bank financing since 2014,” remarked Economou.

“In dollar terms, assuming a modest 50% leverage of the market value of these assets, this would imply the ability to raise approximately $250 million (or $19.13 per share) of additional debt capital. We will now concentrate our efforts on arranging financing for these vessels. This will allow us to focus on further accretive vessel acquisitions without the need to raise further equity,” he continued.

DryShips Inc is a holding company that owns drybulk carriers and offshore support vessels. It operates through two segments: the drybulk carrier and the offshore support. Under its drybulk segment, the company operates as a provider of drybulk commodities transportation services for the steel, electric utility, construction and agri-food industries. Under its offshore support segment, the company operates as a provider of offshore support services to the global offshore energy industry.

The Offshore support segment operates a diversified fleet of offshore support vessels. It owns a fleet of approximately 20 Panamax drybulk carriers, which have a combined deadweight tonnage of approximately 1.5 million dwt and an average age of approximately 10 years, and six offshore supply vessels, comprising over two platform supply and four oil spill recovery vessels, and have an average age of approximately 3.1 years.

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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of ForexMinute.com and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.