DryShips returns to second-quarter profitability

(Posted on 02/08/18)

Nasdaq-listed DryShips Inc. , a diversified owner and operator of ocean going cargo vessels, has announced its unaudited financial and operating results for the quarter ended June 30, 2018. The company, founded in 2004 by its current Chief Executive Officer, George Economou, has suspended its dividend, preferring instead to spend free cash on a stock repurchase programme. DryShips was the first dry bulk company to go public in the United States.

For the second quarter of 2018, the Company reported net income of $3.6 million, or $0.04 basic and diluted earnings per share.

Included in the second quarter of 2018 results are the following: Vessel dry-docking costs of $3.3 million, or $0.03 per share; Gain of $5.1 million, or $0.05 per share, on the sale of the Company’s 2001 built Panamax vessel, the

Maganari, to an unaffiliated buyer.

Excluding the above, the Company’s net results would have amounted to a net income of $1.8 million, or $0.02 per share.

The Company reported Adjusted EBITDA of $13.3 million for the second quarter of 2018.

As of 31 July, 2018, the Company has repurchased a total of 5,565,992 shares of its common stock for an aggregate amount of $23.1 million, including commissions, pursuant to its previously announced stock repurchase programme under which the Company may repurchase up to $50.0 million of its outstanding common stock until February 28, 2019. The current number of the Company’s outstanding common stock is 98,708,716.

While announcing the results of its common stock repurchase program under which the Company has repurchased a total of 5,565,992 shares, the Company’s Board of Directors has decided to suspend the Company’s previously announced cash dividend policy until further notice. As previously noted, both the dividend policy and common stock repurchase program are subject to the discretion of the Company’s Board of Directors and may be suspended or amended at any time without notice.

On July 18 and July 24, 2018, the Company’s Panamax vessels Redondo and Marbella, respectively, were delivered to their new owners according to the terms of the previously announced Memoranda of Agreement with unaffiliated buyers.