DryShips Inc (fka DRYS)

[Net-Man]

The higher cost of low sulfur fuels will likely be a pass through cost and not add to net profitabilty. There is a larger issue that could benefit all shippers though. The higher cost of the scrubbers needed to remove the sulfur from a ship's exhaust is expensive and could drive a number ships to the scrap yard. Reduced fleet size will benefit the ships left in the fleet due to less competition.Throw in ballast water treatment equipment and the over all costs could significantly change the supply side of the shipping equation.