DryShips Inc (fka DRYS)

[Net-Man]

2Q wasn't expected to be much and was similar to other dry bulk shippers. I did find the lack of forward guidance disappointing. It wasn't just the lack of dry bulk future revenues, but what of the tankers and Heidmar? What is DRYS plans for the 6 now laid up OSVR ships? That is at least $75 million floating on a mooring not adding anything to the bottom line but costs.

There are a number of key questions that need to be answered. The macro view of shipping is looking better though. Fewer ships being delivered at this point (<1% 2017 growth) along with a generally stable 2% to 2.5% worldwide GDP is creating the upswing in the shipping cycle. Spot rates could be significantly higher next year. I originally was forecasting that to take place this year basing that on the ballast water system upgrades. That was pushed back 2 years and owners now have more time to make the decision to either upgrade or scrap. Increasing demand will move rates up and keep those ships in play longer now. The only offset will be if ship orders stay low for the next few years.