To put things in perspective at a macro level, the BDI was at 946 this time last year versus 1547 as of yesterday or a 615 improvement YoY. Worldwide GDP is expected to grow again in 2018, which will drive additional shipping demand.
From a DRYS perspective, they have low debt and stability from several long-term contracts. Half of the ships are working at spot rates, which also seemed headed higher. The major drag on DRYS at the moment are the 6 laid up ships in the OSV fleet. Although I expect GE to end up with those ships on the cheap, his buying them should put something back into the coffers.
And then there is Hiedmar. It seems clear from 3Q financials that DRYS once again over paid for this unit. With that said though, what is its value? There was no hint in the financials about any revenue. While it is a cipher at the moment, the question remains what revenue will be generated by the unit?
