DRYSHIPS INC

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 6-K


REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934


For the month of August 2012


Commission File Number 001-33922


DRYSHIPS INC.


80 Kifissias Avenue

Amaroussion 15125, Athens Greece

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


Form 20-F [X]       Form 40-F [  ]


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].


Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].


Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.



1



INFORMATION CONTAINED IN THIS FORM 6-K REPORT


Attached as Exhibit 1 is a press release of DryShips Inc. (the “Company”) dated August 16, 2012: DryShips Inc. Reports Financial and Operating Results for the Second Quarter 2012.



2




SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  

DryShips Inc.                        

  

(Registrant)

  

  

Dated:  August 16, 2012

By:  /s/George Economou    

  

  

George Economou

Chief Executive Officer





3



Exhibit 1

[f081612drys6k001.jpg]


DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING

RESULTS FOR THE SECOND QUARTER 2012

August 16, 2012, Athens, Greece. DryShips Inc. (NASDAQ: DRYS), or the Company, a global provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of off-shore deepwater drilling services, today announced its unaudited financial and operating results for the second quarter ended June 30, 2012.

Second Quarter 2012 Financial Highlights

Ø

For the second quarter of 2012, the Company reported a net loss of $18.2 million, or $0.05 basic and diluted loss per share.


Included in the second quarter 2012 results are:


     - charges to our subsidiary, Ocean Rig, relating to the 10 year class survey costs of $3.0 million for the Eirik Raude, or $0.01 per share

    -   losses incurred on our interest rate swaps totaling $13.0 million, or $0.03 per share

Ø

The Company reported Adjusted EBITDA of $144.6 million for the second quarter of 2012 as compared to $136.2 million for the second quarter of 2011.(1)



Recent Events


-

Ocean Rig signed Letters of Intent (2) with three major oil companies for three drillships for an additional backlog of $2.2 billion over three years.  


-

On August 7, 2012, Ocean Rig entered into an amortizing interest rate swap agreement for an initial notional amount of $450 million maturing in July 2017. This agreement was entered into to hedge the Company’s exposure to interest rate fluctuations by fixing the interest rate at 1.0425% from July 2013 until July 2017.


-

On July 24, 2012, the Company signed a term sheet with ABN AMRO, Korea Development Bank and Korea Trade Insurance Corporation (“KSURE”) for a $107.7 million senior secured term loan facility to partially finance our tankers, Alicante, Mareta and Bordeira. The term of the facility is 6 years and the repayment profile is 12 years. The facility agent will be ABN AMRO. This facility is subject to definitive documentation which we expect to complete in the third quarter of 2012.


-

On July 19, 2012, the Company was notified by Norddeutsche Landesbank (“NordLB”) that a waiver request has been formally granted under our $126.4 million term loan facility dated July 23, 2008, as amended. Under the main terms of the waiver, the Company agrees to make a prepayment to the lender in the amount of $9.1 million (which amount is currently in a cash collateral account pledged to the lender) in return for the relaxation of VMC requirements going forward. This waiver is subject to definitive documentation which the Company expects to complete in the third quarter of 2012.


(1)   Adjusted EBITDA is a non-GAAP measure, please see later in this press release for a reconciliation to net income.

(2)  Subject to certain conditions


-

In July 2012, Ocean Rig formally commenced syndication of a $1.35 billion senior secured term loan facility to partially finance our drillship newbulding hulls 1979, 2013 and 2032. This facility will be led by DNB and Nordea and is expected to have both a commercial tranche and an export credit agency (ECA) tranche. Ocean Rig has received conditional commitments for the commercial tranche, and is expecting to receive commitments from ECAs in the third quarter of 2012.


George Economou, Chairman and Chief Executive Officer of the Company commented:


"The bulk shipping market is in a tough spot facing multiple challenges. In the drybulk and tanker segments, spot charter rates continue to hover at historic lows and asset values have dropped precipitously in the last two years, not to mention from the highs of 2007/2008. Bunker prices have dropped somewhat from the record highs seen earlier this year but remain at high levels. The time charter market lacks liquidity and the rates anyway are very low, well below breakeven rates. And to compound all of this there is a severe lack of liquidity from the traditional lenders as they contract balance sheets to meet Basel III requirements or due to complete exits from the sector. We still have contract coverage of 44% on the drybulk fleet for the remainder of 2012, however, unless the freight market recovers the shipping segment will remain a drag on our results. Additionally we also have significant capital expenditures to finance our newbuilding program, which is something we are pro-actively managing in this challenging environment.  

“Having said that, we remain defensively positioned to weather the storm with a relatively healthy cash position and our holding in Ocean Rig. We are very excited about the prospects for Ocean Rig as we recently signed letters of intent with three major oil companies for three of our drillships, including two of our newbuildings, for an additional backlog of $2.2 billion over three years. Assuming these contracts materialize, our total backlog will nearly double from $2.6 billion to $4.8 billion over three years and will provide Ocean Rig with substantial cash flow visibility and growth. Given strong industry fundamentals and the fact that there are very few ultra deepwater units available in 2013 we expect to further increase our already substantial backlog by entering into long term contracts for our two remaining units available in 2013. We continue to build on the Ocean Rig story and have positioned the company to build further on this strong platform to become the preferred contractor in the ultra deepwater sector. The holding in Ocean Rig provides us the flexibility to navigate through the tough shipping environment and weather the storm."














4



Financial Review: 2012 Second Quarter

The Company recorded a net loss of $18.2 million, or $0.05 basic and diluted loss per share, for the three-month period ended June 30, 2012, as compared to a net loss of $114.1 million, or $0.33 basic and diluted loss per share, for the three-month period ended June 30, 2011. Adjusted EBITDA was $144.6 million for the second quarter of 2012 as compared to $136.2 million for the same period in 2011.

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $58.6 million for the three-month period ended June 30, 2012, as compared to $87.7 million for the three-month period ended June 30, 2011. For the offshore drilling segment, revenues from drilling contracts increased by $136.9 million to $263.5 million for the three-month period ended June 30, 2012 as compared to $126.6 million for the same period in 2011. For the tanker segment, net voyage revenues amounted to $8.5 million for the three-month period ended June 30, 2012 as compared to $4.1 million for the same period in 2011.

Total vessels’, drilling rigs’ and drillships’ operating expenses and total depreciation and amortization increased to $167.3 million and $84.1 million, respectively, for the three-month period ended June 30, 2012, from $84.9 million and $65.1 million, respectively, for the three-month period ended June 30, 2011. Total general and administrative expenses increased to $32.8 million in the second quarter of 2012 from $27.2 million during the comparative period in 2011.

Interest and finance costs, net of interest income, amounted to $54.2 million for the three-month period ended June 30, 2012, compared to $33.3 million for the three-month period ended June 30, 2011.




5



Fleet List

The table below describes our fleet profile as of August 16, 2012:


 

Year

 

 

Gross rate

Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

Drybulk fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Capesize:

 

 

 

 

 

 

Mystic

2008

170,040

Capesize

$52,310

Aug-18

Dec-18

Robusto

2006

173,949

Capesize

$26,000

Aug-14

Dec-14

Cohiba

2006

174,234

Capesize

$26,250

Oct-14

Feb-15

Montecristo

2005

180,263

Capesize

$23,500

May-14

Oct-14

Flecha

2004

170,012

Capesize

$55,000

Jul-18

Nov-18

Manasota

2004

171,061

Capesize

$30,000

Jan-18

Aug-18

Partagas

2004

173,880

Capesize

$10,000

Jun-13

Aug-13

Alameda

2001

170,662

Capesize

$27,500

Nov-15

Jan-16

Capri  

2001

172,579

Capesize

$12,500

Jan-13

Apr-13

 

 

 

 

 

 

 

Panamax:

 

 

 

 

 

 

Raraka

2012

76,037

Panamax

$13,150

Feb-13

Apr-13

Woolloomooloo

2012

76,064

Panamax

$13,150

Jan-13

Mar-13

Amalfi

2009

75,206

Panamax

$39,750

Aug- 13

Oct- 13

Rapallo

2009

75,123

Panamax

Spot

N/A

N/A

Catalina

2005

74,432

Panamax

$40,000

Jun-13

Aug-13

Majorca

2005

74,477

Panamax

Spot

N/A

N/A

Ligari

2004

75,583

Panamax

Spot

N/A

N/A

Saldanha

2004

75,707

Panamax

Spot

N/A

N/A

Sorrento

2004

76,633

Panamax

$24,500

Aug-21

Dec-21

Mendocino

2002

76,623

Panamax

Spot

N/A

N/A

Bargara

2002

74,832

Panamax

Spot

N/A

N/A

Oregon

2002

74,204

Panamax

Spot

N/A

N/A

Ecola

2001

73,931

Panamax

Spot

N/A

N/A

Samatan

2001

74,823

Panamax

Spot

N/A

N/A

Sonoma

2001

74,786

Panamax

Spot

N/A

N/A

Capitola  

2001

74,816

Panamax

Spot

N/A

N/A

Levanto

2001

73,925

Panamax

Spot

N/A

N/A

Maganari

2001

75,941

Panamax

Spot

N/A

N/A

Coronado

2000

75,706

Panamax

Spot

N/A

N/A

Marbella

2000

72,561

Panamax

Spot

N/A

N/A

Redondo

2000

74,716

Panamax

Spot

N/A

N/A

Topeka

2000

74,716

Panamax

$12,250

Dec-12

Feb-13

Ocean Crystal

1999

73,688

Panamax

Spot

N/A

N/A

Helena

1999

73,744

Panamax

Spot

N/A

N/A

 

 

 

 

 

 

 

Supramax:

 

 

 

 

 

 

Byron

2003

51,118

Supramax

Spot

N/A

N/A

Galveston

2002

51,201

Supramax

Spot

N/A

N/A

 





Year

 

 





Gross rate





Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

Newbuildings

 

 

 

 

 

 

Newbuilding Ice –class Panamax 1

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 2

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 3

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding Ice –class Panamax 4

2014

75,900

Panamax

Spot

N/A

N/A

Newbuilding VLOC #4

2013

206,000

Capesize

Spot

N/A

N/A

Newbuilding VLOC #5

2013

206,000

Capesize

Spot

N/A

N/A

Newbuilding VLOC #3

2013

206,000

Capesize

$21,500

Jan- 20

Jan-27

Newbuilding Capesize 1

2012

176,000

Capesize

Spot

N/A

N/A

Newbuilding Capesize 2

2012

176,000

Capesize

Spot

N/A

N/A

Newbuilding VLOC #1

2012

206,000

Capesize

$25,000

June-15

June-20

Newbuilding VLOC #2

2012

206,000

Capesize

$23,000

Oct- 17

Oct-22

 

 

 

 

 

 

 

Tanker fleet

 

 

 

 

 

 

Petalidi

2012

158,300

Suezmax

Spot

N/A

N/A

Calida

2012

115,200

Aframax

Spot

N/A

N/A

Lipari

2012

158,300

Suezmax

Spot

N/A

N/A

Vilamoura

2011

158,300

Suezmax

Spot

N/A

N/A

Saga

2011

115,200

Aframax

Spot

N/A

N/A

Daytona

2011

115,200

Aframax

Spot

N/A

N/A

Belmar

2011

115,200

Aframax

Spot

N/A

N/A

 

 

 

 

 

 

 

Newbuildings

 

 

 

 

 

 

Blanca

2013

158,300

Suezmax

Spot

N/A

N/A

Bordeira

2013

158,300

Suezmax

Spot

N/A

N/A

Esperona

2013

158,300

Suezmax

Spot

N/A

N/A

Alicante

2012

115,200

Aframax

Spot

N/A

N/A

Mareta

2012

115,200

Aframax

Spot

N/A

N/A


Drilling Rigs/Drillships:

Unit

Year built

Redelivery

Operating area

Backlog ($m) (1)(2)

Leiv Eiriksson

2001

Q4 – 12

Falkland Islands

$78

Leiv Eiriksson

2001

Q1 – 16

North Sea

$653

Eirik Raude

2002

Q3 – 12

Equatorial Guinea

$49

Eirik Raude

2002

Q1- 13

West Africa

$75

Ocean Rig Corcovado

2011

Q2 – 15

Brazil

$483

Ocean Rig Olympia

2011

Q3 – 12

Ghana

$4

Ocean Rig Olympia

2011

Q3- 15

Angola

$652

Ocean Rig Poseidon

2011

Q2 – 13

Tanzania

$162

Ocean Rig Mykonos

2011

Q1 – 15

Brazil

$452

Total

 

 

 

$2,608

(1) Backlog as of June 30, 2012

(2) Does not include additional backlog of $2.2 billion over three years resulting from conditional LOIs


Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited)

 (Dollars in thousands, except average daily results)

Drybulk

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2011

 

2012

 

2011

 

2012

Average number of vessels(1)

35.0

 

35.4

 

35.9

 

35.7

Total voyage days for vessels(2)

3,136

 

3,200

 

6,404

 

6,476

Total calendar days for vessels(3)

3,188

 

3,218

 

6,503

 

6,503

Fleet utilization(4)

98.4%

 

99.4%

 

98.5%

 

99.6%

Time charter equivalent(5)

$27,964

 

$18, 319

 

$27,829

 

$20,229

Vessel operating expenses (daily)(6)

$6,435

 

$5,313

 

$6,107

 

$5,484










Tanker

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2011

 

2012

 

2011

 

2012

Average number of vessels(1)

2.6

 

6.1

 

1.8

 

5.5

Total voyage days for vessels(2)

245

 

552

 

326

 

1,005

Total calendar days for vessels(3)

245

 

552

 

326

 

1,005

Fleet utilization(4)

100%

 

100%

 

100%

 

100%

Time charter equivalent(5)

$16,935

 

$15,310

 

$15,945

 

$15,583

Vessel operating expenses (daily)(6)

$8,600

 

$8,690

 

$12,239

 

$8,096


(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of off hire days.

(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including off hire days.

(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods.

(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period.


Drybulk

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2011

 

2012

 

2011

 

2012

Voyage revenues

$         93,140

$

62,487

$

190,128

$

139,508

Voyage expenses

(5,446)

 

(3,865)

 

(11,912)

 

(8,508)

Time charter equivalent revenues

$        87,694

$

58,622

$

178,216

$

131,000

Total voyage days for fleet   

3,136

 

3,200

 

6,404

 

6,476

Time charter equivalent TCE

$        27,964

$

18,319

$

27,829

$

20,229




Tanker

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2011

 

2012

 

2011

 

2012

Voyage revenues

$  4,249        

$

10,161

$

5,348

$

17,637

Voyage expenses

(100)

 

(1,710)

 

(150)

 

(1,976)

Time charter equivalent revenues

$  4,149        

$

8,451

$

5,198

$

15,661

Total voyage days for fleet   

245

 

552

 

326

 

1,005

Time charter equivalent TCE

$16,935          

$

15,310

$

15,945

$

15,583



Dryships Inc.


Financial Statements

Unaudited Condensed Consolidated Statements of Operations


(Expressed in Thousands of U.S. Dollars

except for share and per share data)

 


Three Months Ended June 30,

 


Six Months Ended June 30,

 

 

 

2011

 

2012

 

2011

 

2012

 

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

Voyage revenues

$

97,389

$

72,648

$

195,476

$

157,145

 

Revenues from drilling contracts

 

126,629

 

263,491

 

235,955

 

426,490

 

 

 

224,018

 

336,139

 

431,431

 

583,635

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Voyage expenses

 

5,546

 

5,575

 

12,062

 

10,484

 

Vessel operating expenses

 

22,622

 

22,251

 

43,706

 

43,796

 

Drilling rigs operating expenses

 

62,288

 

145,052

 

104,137

 

230,392

 

Depreciation and amortization

 

65,106

 

84,079

 

121,021

 

166,034

 

Vessel impairments and other, net

 

87,747

 

(525)

 

87,745

 

963

 

General and administrative expenses

 

27,214

 

32,770

 

53,930

 

65,344

 

Legal settlements and other

 

-

 

(7,425)

 

-

 

(1,606)

 

 

 

 

 

 

 

 

 

 

 

Operating income / (loss)

 

(46,505)

 

54,362

 

8,830

 

68,228

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME / (EXPENSES):

 

 

 

 

 

 

 

 

 

Interest and finance costs, net of interest income

 

(33,293)

 

(54,170)

 

(48,902)

 

(106,347)

 

Loss on interest rate swaps

 

(35,920)

 

(12,963)

 

(39,775)

 

(21,714)

 

Other, net

 

1,717

 

4,824

 

3,812

 

2,576

 

Income taxes

 

(3,817)

 

(11,596)

 

(9,778)

 

(21,628)

 

Total other expenses

 

(71,313)

 

(73,905)

 

(94,643)

 

(147,113)

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(117,818)

 

(19,543)

 

(85,813)

 

(78,885)

 

 

 

 

 

 

 

 

 

 

 

Net income/ (loss) attributable to Non controlling interests

 

3,729

 

1,341

 

(2,511)

 

13,227

 

 

 

 

 

 

 

 

 

 

 

Net  loss attributable

to Dryships Inc.


$

(114,089)


$

(18,202)


$

(88,324)


$

(65,658)

 

 

 

 

 

 

 

 

 

 

 

Loss per common share, basic and diluted

$

(0.33)

$

(0.05)

$

(0.27)

$

(0.17)

 

Weighted average number of shares, basic and diluted

 

351,297,180

 

380,152,244

 

344,259,487

 

380,152,244

 

 

 

 

 

 

 

 

 

 

 





















Dryships Inc.


Unaudited Condensed Consolidated Balance Sheets


 (Expressed in Thousands of U.S. Dollars)

 

December 31, 2011

   




June 30, 2012

 

 

 

 

 

ASSETS

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

$

251,143

$

366,292

 

Restricted cash

 

72,765

 

67,344

 

Other current assets  

 

246,169

 

343,193

 

Total current assets

 

570,077

 

776,829

 

 

 

 

 

 

FIXED ASSETS, NET:

 

 

 

 

 

Advances for vessels and rigs under construction and acquisitions

 

1,027,889

 

972,570

 

Vessels, net

 

1,956,270

 

2,063,115

 

Drilling rigs, drillships, machinery and equipment, net

 

4,587,916

 

4,527,770

 

Total fixed assets, net

 

7,572,075

 

7,563,455

 

 

 

 

 

 

OTHER NON-CURRENT ASSETS:

 

 

 

 

 Restricted cash

 

332,801

 

301,899

 Other non-current assets

 

146,736

 

152,103

Total non-current assets

 

479,537

 

454,002

 

Total assets

 

8,621,689

 

8,794,286

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Current portion of long-term debt

 

429,149

 

499,823

 

Other current liabilities

 

327,114

 

405,080

 

Total current liabilities

 

756,263

 

904,903

 

 

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

Long-term debt, net of current portion

 

3,812,686

 

3,694,951

Other non-current liabilities

 

114,078

 

139,076

Total non-current liabilities

 

3,926,764

 

3,834,027

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

 

 

Total stockholders’ equity

 

3,938,662

 

4,055,356

 

Total liabilities and stockholders’ equity

$

8,621,689

$

8,794,286

 

 

 

 

 

 

 










Adjusted EBITDA Reconciliation

Adjusted EBITDA represents net income before interest, taxes, depreciation and amortization, vessel impairments and gains or losses on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations and efficiency. Adjusted EBITDA is also used by our lenders as a measure of our compliance with certain covenants contained in our loan agreements and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

The following table reconciles net income to Adjusted EBITDA:

(Dollars in thousands)

 

 Three Months Ended June 30, 2011

 

 Three Months Ended June 30, 2012

 

Six Months Ended June 30, 2011

 

Six Months Ended June 30, 2012

 

 

 

 

 

 

 

 

 

Net loss

 

(114,089)

 

(18,202)

 

(88,324)

 

(65,658)

 

 

 

 

 

 

 

 

 

Add: Net interest expense

 

33,293

 

54,170

 

48,902

 

106,347

Add: Depreciation and amortization

 

65,106

 

84,079

 

121,021

 

166,034

Add: Impairment losses

 

112,104

 

-

 

112,104

 

-

Add: Income taxes

 

3,817

 

11,596

 

9,778

 

21,628

Add: Loss on interest rate swaps

 

35,920

 

12,963

 

39,775

 

21,714

Adjusted EBITDA

 

136,151

 

144,606

 

243,256

 

250,065




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Conference Call and Webcast: August 17, 2012

As announced, the Company’s management team will host a conference call, on Friday, August 17, 2012 at 8:00 a.m. Eastern Daylight Time to discuss the Company's financial results.

Conference Call Details

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1(866) 819-7111 (from the US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from outside the US). Please quote "DryShips."

A replay of the conference call will be available until August 24, 2012. The United States replay number is 1(866) 247- 4222; from the UK 0(800) 953-1533; the standard international replay number is (+44) (0) 1452 55 00 00 and the access code required for the replay is: 2133051#.

A replay of the conference call will also be available on the Company’s website at www.dryships.com under the Investor Relations section.

Slides and Audio Webcast

There will also be a simultaneous live webcast over the Internet, through the DryShips Inc. website (www.dryships.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About DryShips Inc.


DryShips Inc. is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 9 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 7 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013.  DryShips owns a fleet of 46 drybulk carriers (including newbuildings), comprising 11 Capesize, 28 Panamax, 2 Supramax and 5 newbuilding Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of approximately 5.1 million tons, and 12 tankers (including newbuildings), comprising 6 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.6 million tons.


DryShips’ common stock is listed on the NASDAQ Global Select Market where it trades under the symbol “DRYS.”

Visit the Company’s website at www.dryships.com



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Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in our operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by DryShips Inc. with the US Securities and Exchange Commission.

Investor Relations / Media:

Nicolas Bornozis

Capital Link, Inc. (New York)

Tel. 212-661-7566

E-mail: dryships@capitallink.com





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