BB's Stock Haven

[Mr B]

DRYS up in aftermarket: "We are delighted to have achieved the refinancing of our convertible notes on December 1. Our recent successful equity offering raised $333.7 million in net proceeds for the Company. This equity offering, credit facilities from Nordea Bank and ABN AMRO and the unsecured credit line of $120 million from Ocean Rig covers the $700 million due outstanding.
"Our liquidity position on the shipping side has been positively impacted by the outperforming tanker markets, especially the Suezmax and Aframax segments which continue to perform above expectations for this time of the year. In addition, we expect a boost to our cash reserves from the recent dividend declared by Ocean Rig of which we expect to receive approximately $14.8 million on November 11, as well as from the excess of our financing sources outlined above over the underlying debt repayment. Insofar as the drybulk markets are concerned, the long awaited recovery in freight rates is happening and we believe this may lead to a sustainable recovery in charter rates through 2015. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations. Dryships has a large amount of spot market exposure and is therefore uniquely positioned to take full advantage of the expected recovery in charter rates.
"Turning to our offshore drilling interests, Ocean Rig continues to execute on its business plan. It has produced another record-breaking quarter of $104.3 million net income mainly as a result of 98.6% fleet-wide utilization. More recently, it has announced contract extensions in Brazil adding another $1.1 billion to its backlog taking its contracted revenue backlog to $5.5 billion over the next few years. We believe that while the market outlook has been less positive in recent weeks, talk of a market downturn is overblown and rates are still at profitable levels as evidenced by our recent fixture. Ocean Rig's modern fleet, strong balance sheet and solid contract backlog, provides it with the foundation to implement its previously announced value creation initiatives which will also have a direct benefit to all its shareholders including Dryships."
Financial Review: 2014 Third Quarter
The Company recorded net income of $16.7 million, or $0.04 basic and diluted earnings per share, for the three-month period ended September 30, 2014, as compared to a net loss of $63.9 million, or $0.17 basic and diluted loss per share, for the three-month period ended September 30, 2013. Adjusted EBITDA(1) was $300.2 million for the third quarter of 2014, as compared to $174.8 million for the same period in 2013.