DryShips Inc. (NASDAQ:DRYS) a diversified possessor of ocean group cargo vessels, reported that it has bought a Very Large Gas Carrier currently under construction at “HHI” for a buy price of $83.5 million. The firm funded the closing price of $21.9 million by utilizing part its unused liquidity under the $200 million New Sifnos Revolver, which is noted at $142.9 million. The balance of the buy price amounting to $61.6 million for the VLGC will be due in installments until the container’s delivery from HHI.
The Very Large Gas Carrier will be engaged on a fixed rate time contract with five-year firm period to an oil major. It has options to extend the company employment period by up to 3 years. DryShips anticipates a total gross backlog linked with this time contract of up to $92.7 million counting the optional periods, and anticipates to take delivery of this vessel in coming June.
The management view
Mr. Anthony Kandylidis, the Chief Financial Officer and President of DryShips, said that they are extremely delighted to have bought their first high design VLGC newbuilding inaugural a new period of investments since the rearrangement of their balance sheet. The completion of their first investment in the gas carrier division, which they consider will be highly accretive to cash flow and earnings, was financed by New Sifnos Revolver supporting once more George Economou’ s commitment to company.
DryShips is a differentiated owner of ocean group cargo containers that operate globally. The firm owns a fleet of Panamax drybulk carriers counting 13 with a collective deadweight tonnage of about 1 million tons, one Very Large Gas Carrier and six offshore supply vessels, including 4 oil spill recovery and 2 platform supply vessels.
In the last trading session, the stock price of jumped over 700% to close the week at $8.08.