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 2013


Commission File Number 001-33922


DRYSHIPS INC.


74-76 V. Ipeirou Street

151 25, Marousi

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 99.1 to this Report on Form 6-K is a press release of DryShips Inc. (the “Company”) dated August 7, 2013: Dryships Inc. Reports Financial and Operating Results for the Second Quarter 2013.




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 7, 2013

By:  /s/George Economou    

  

  

George Economou

Chief Executive Officer





3



Exhibit 99.1

[f080713drys6k001.jpg]


DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING

RESULTS FOR THE SECOND QUARTER 2013


August 7, 2013, Athens, Greece. DryShips Inc. (NASDAQ: DRYS), or DryShips or the Company, an international provider of marine transportation services for drybulk and petroleum cargoes, and through its majority owned subsidiary, Ocean Rig UDW Inc., or Ocean Rig, of offshore deepwater drilling services, today announced its unaudited financial and operating results for the second quarter ended June 30, 2013.

Second Quarter 2013 Financial Highlights

Ø

For the second quarter of 2013, the Company reported a net loss of $18.2 million, or $0.05 basic and diluted loss per share.


Ø

The Company reported Adjusted EBITDA of $112.3 million for the second quarter of 2013, as compared to $140.2 million for the second quarter of 2012. (1)


Recent Events


-

On August 1, 2013, the Company entered into two supplemental agreements related to two bank loans dated October 5, 2007 and March 13, 2008, respectively, to amend certain terms and cure a shortfall in the security cover ratio, and pledged an aggregate of 5,450,000 of its shares of Ocean Rig as additional security under the loans.


-

On July 30, 2013, Ocean Rig signed definitive documentation with Total E&P Congo, following the previously announced Letter of Award, for its ultra deepwater drillship Ocean Rig Apollo. The contract is for a three-year drilling campaign offshore West Africa, with an estimated backlog of approximately $677 million, and is expected to commence in the first quarter of 2015.


-

On July 19, 2013, Ocean Rig received a Letter of Award for its ultra deepwater drillship Ocean Rig Skyros from a major oil company. The Letter of Award is for a six-year contract for drilling offshore West Africa, with an estimated backlog of approximately $1.3 billion. The contract is expected to commence in direct continuation of the previous contract for the Ocean Rig Skyros with Total E&P Angola before the first quarter of 2015.


-

In July 2013, Ocean Rig entered into a $1.9 billion senior secured term loan facility, comprised of tranche B-1 term loans in an aggregate principal amount equal to $1,075.0 million and tranche B-2 term loans in an aggregate principal amount equal to $825.0 million, with respective maturity dates in the first quarter of 2021 and the third quarter of 2016.


-

On July 10, 2013, Ocean Rig entered into a drilling contract with Total E&P Angola for a five-well program or a minimum of 275 days for its ultra deepwater drillship Ocean Rig Skyros for drilling offshore West Africa, with an estimated backlog of approximately $190 million. The Ocean Rig Skyros is expected to commence this contract upon delivery from the shipyard in November 2013.


-

On May 23, 2013 and June 18, 2013, the Company took delivery of its two VLOCs under construction in China and drew down the maximum amount available under the secured term loan facility with China Development Bank.


____________________________________________

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




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


"We continue to be defensive about the short-term prospects of the shipping markets. Asset prices seem to be holding up but we do not expect any positive development in drybulk and tanker charter rates this year. As a result we have focused this year on reducing our breakeven levels. We lowered our newbuilding capital expenditures significantly and are now focusing on other areas.  


As part of this effort, during the second quarter of 2013, we accelerated our discussions with our lenders to lower our debt service requirements. So far, we concluded an agreement with a lender to, among other things, defer certain principal installments until maturity. As part of this transaction, we provided a pledge of Ocean Rig shares, underlining our commitment to reach viable solutions with our lenders.


We are cautiously optimistic expecting a sustainable recovery in 2014 and beyond and believe DryShips is well positioned to take advantage of the ensuing recovery in charter rates in the drybulk and tanker sectors.


In terms of our shareholding in Ocean Rig UDW Inc., we are pleased with Ocean Rig’s solid results for the quarter. In addition, Ocean Rig’s consummation of the $1.9 billion term loan transaction was vital, not only in terms of the net cash flow it will generate, but also in terms of the additional financial flexibility for Ocean Rig that it will provide. As the largest shareholder in Ocean Rig, we believe it is optimally positioned in the ultra-deepwater drilling market and we continue to be positive about the prospects for Ocean Rig, whose contract backlog currently stands at approximately $6.0 billion.”














4




Financial Review: 2013 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 periods ended June 30, 2013 and 2012, respectively. Adjusted EBITDA was $112.3 million for the second quarter of 2013, as compared to $140.2 million for the same period in 2012.(2)

For the drybulk carrier segment, net voyage revenues (voyage revenues minus voyage expenses) amounted to $42.4 million for the three-month period ended June 30, 2013, as compared to $58.6 million for the three-month period ended June 30, 2012. For the tanker segment, net voyage revenues amounted to $9.1 million for the three-month period ended June 30, 2013, as compared to $8.5 million for the same period in 2012. For the offshore drilling segment, revenues from drilling contracts decreased by $3.7 million to $259.8 million for the three-month period ended June 30, 2013, as compared to $263.5 million for the same period in 2012.

Total vessels’, drilling rigs’ and drillships’ operating expenses and total depreciation and amortization decreased to $142.5 million and increased to $85.8 million, respectively, for the three-month period ended June 30, 2013, from $167.3 million and $84.1 million, respectively, for the three-month period ended March 31, 2012. Total general and administrative expenses remained approximately the same at $37.2 million in the second quarters of 2013 and 2012, respectively.

Interest and finance costs, net of interest income, amounted to $56.0 million for the three-month period ended June 30, 2013, compared to $49.8 million for the three-month period ended June 30, 2012.

Settlement with Cairn Energy

In July 2013, Ocean Rig reached an out of court settlement with Cairn Energy to receive compensation amounting to $5.0 million against an outstanding receivable of $11.0 million. As a result, during the second quarter of 2013, Ocean Rig wrote off $6.0 million. This agreement is subject to definitive documentation.













___________________________

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


Fleet List

The table below describes our fleet profile as of July 31, 2013:

 

Year

 

 

Gross rate

Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

Drybulk fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Capesize:

 

 

 

 

 

 

Rangiroa

2013

206,000

Capesize

$23,000

Apr-18

Nov-23

Negonego

2013

206,000

Capesize

$21,500

Mar-20

Feb-28

Fakarava

2012

206,000

Capesize

$25,000

Sept-15

Sept-20

Mystic

2008

170,040

Capesize

$52,310

Aug-18

Dec-18

Robusto

2006

173,949

Capesize

$26,000

Aug-14

Apr-18

Cohiba

2006

174,234

Capesize

$26,250

Oct-14

Jun-19

Montecristo

2005

180,263

Capesize

$23,500

May-14

Feb-19

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

$11,500

Jun-14

Oct-14

Alameda

2001

170,662

Capesize

$27,500

Nov-15

Jan-16

Capri  

2001

172,579

Capesize

$10,000

Nov-13

Mar-14

 

 

 

 

 

 

 

Panamax:

 

 

 

 

 

 

Raraka

2012

76,037

Panamax

$7,500

Jan-15

Mar-15

Woolloomooloo

2012

76,064

Panamax

$7,500

Dec-14

Feb-15

Amalfi

2009

75,206

Panamax

Spot

N/A

N/A

Rapallo

2009

75,123

Panamax

Spot

N/A

N/A

Catalina

2005

74,432

Panamax

Spot

N/A

N/A

Majorca

2005

74,477

Panamax

Spot

N/A

N/A

Ligari

2004

75,583

Panamax

$9,250

Sep-13

Nov-13

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

$9,650

Sept-13

Nov-13

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

$9,250

Sept-13

Nov-13

Topeka

2000

74,716

Panamax

$8,450

Oct-13

Dec-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

 

 

 

 

 

 

Panamax:

 

 

 

 

 

 

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

Tanker fleet

 

 

 

 

 

 

Suezmax:

 

 

 

 

 

 

Bordeira

2013

158,300

Suezmax

Spot

N/A

N/A

Petalidi

2012

158,300

Suezmax

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

Aframax:

 

 

 

 

 

 

Alicante

2013

115,200

Aframax

Spot

N/A

N/A

Mareta

2013

115,200

Aframax

Spot

N/A

N/A

Calida

2012

115,200

Aframax

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

 

 

 

 

 

 

 

Drilling Rigs/Drillships:

Unit


Leiv Eiriksson

Year built


2001

Redelivery


Q2 – 16

Operating area


Norway

Backlog ($m)


        $542

Eirik Raude

2002

Q3 – 13

Ireland

$14

 

 

Q3 – 14

Sierra Leone, Ivory Coast

$217

Ocean Rig Corcovado

2011

Q2 – 15

Brazil

$292

Ocean Rig Olympia

2011

Q3 – 15

Gabon, Angola

$432

Ocean Rig Poseidon

2011

Q2 – 16

Angola

$721

Ocean Rig Mykonos

2011

Q1 – 15

Brazil

$265

Newbuildings


Ocean Rig Mylos  (Expected delivery Aug. 2013)



2013



Q3 – 16



Brazil



$662

Ocean Rig Skyros (Expected delivery Nov. 2013)

2013

Q4 – 14

Angola

$187

 

 

Q4 – 20

 Angola

$1,266(1)

Ocean Rig Athena (Expected delivery Dec. 2013)

2013

Q1 – 17

Angola

$752

Ocean Rig Apollo (Expected delivery Jan. 2015)

2015

Q1 – 18

 Congo

$677

Total

 

 

 

$6,027







(1)

Letter of Award is subject to definitive documentation.











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,

 

2012

 

2013

 

2012

 

2013

Average number of vessels(1)

35.4

 

36.6

 

35.7

 

36.3

Total voyage days for vessels(2)

3,200

 

3,326

 

6,481

 

6,566

Total calendar days for vessels(3)

3,218

 

3,328

 

6,503

 

6,568

Fleet utilization(4)

99.4%

 

99.9%

 

99.7%

 

100%

Time charter equivalent(5)

$18, 319

 

$12,756

 

$20,213

 

$12,085

Vessel operating expenses (daily)(6)

$5,313

 

$5,930

 

$5,484

 

$5,496










Tanker


Three Months Ended June 30,

 


Six Months Ended June 30,

 

2012

 

2013

 

2012

 

2013

Average number of vessels(1)

6.1

 

10

 

5.5

 

9.7

Total voyage days for vessels(2)

552

 

910

 

1,005

 

1,758

Total calendar days for vessels(3)

552

 

910

 

1,005

 

1,758

Fleet utilization(4)

100%

 

100%

 

100%

 

100%

Time charter equivalent(5)

$15,310

 

$10,004

 

$15,583

 

$11,349

Vessel operating expenses (daily)(6)

$8,690

 

$6,371

 

$8,096

 

$7,704



(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 dry-docking days.

(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including dry-docking 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 revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from our vessels, the most directly comparable U.S. GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also 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. Please see below for a reconciliation of TCE rates to voyage revenues.

(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.


(In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days)



Drybulk

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2012

 

2013

 

2012

 

2013

Voyage revenues

$            62,487

$

48,315

$

139,508

$

93,797

Voyage expenses

(3,865)

 

(5,890)

 

(8,508)

 

(14,448)

Time charter equivalent revenues

$          58,622

$

42,425

$

131,000

$

79,349

Total voyage days for fleet   

3,200

 

3,326

 

6,481

 

6,566

Time charter equivalent TCE

$          18,319

$

12,756

$

20,213

$

12,085



Tanker

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2012

 

2013

 

2012

 

2013

Voyage revenues

$         10,161

$

27,858

$

17,637

$

55,645

Voyage expenses

(1,710)

 

(18,754)

 

(1,976)

 

(35,694)

Time charter equivalent revenues

$           8,451

$

9,104

$

15,661

$

19,951

Total voyage days for fleet   

552

 

910

 

1,005

 

1,758

Time charter equivalent TCE

$         15,310

$

10,004

$

15,583

$

11,349







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,

 

 

 

2012

 

2013

 

2012

 

2013

 

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

Voyage revenues

$

72,648

$

76,173

$

157,145

$

149,442

 

Revenues from drilling contracts

 

263,491

 

259,835

 

426,490

 

506,279

 

 

 

336,139

 

336,008

 

583,635

 

655,721

 

 

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

 

Voyage expenses

 

5,575

 

24,645

 

10,484

 

50,142

 

Vessel operating expenses

 

22,251

 

25,533

 

43,796

 

49,643

 

Drilling rigs operating expenses

 

145,052

 

116,981

 

230,392

 

237,740

 

Depreciation and amortization

 

84,079

 

85,758

 

166,034

 

168,418

 

Vessel impairments and other, net

 

(525)

 

1,443

 

963

 

76,783

 

General and administrative expenses

 

37,172

 

37,187

 

71,146

 

73,434

 

Legal settlements and other, net

 

(7,425)

 

5,405

 

(1,606)

 

5,390

 

 

 

 

 

 

 

 

 

 

 

Operating income / (loss)

 

49,960

 

39,056

 

62,426

 

(5,829)

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME / (EXPENSES):

 

 

 

 

 

 

 

 

 

Interest and finance costs, net of interest income

 

(49,768)

 

(56,008)

 

(100,545)

 

(112,870)

 

Gain/ (Loss) on interest rate swaps

 

(12,963)

 

23,082

 

(21,714)

 

23,478

 

Other, net

 

4,824

 

2,011

 

2,576

 

2,689

 

Income taxes

 

(11,596)

 

(10,411)

 

(21,628)

 

(24,575)

 

Total other expenses, net

 

(69,503)

 

(41,326)

 

(141,311)

 

(111,278)

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(19,543)

 

(2,270)

 

(78,885)

 

(117,107)

 

 

 

 

 

 

 

 

 

 

 

Net income/ (loss) attributable to Non controlling interests

 

1,341

 

(15,940)

 

13,227

 

(17,738)

 

 

 

 

 

 

 

 

 

 

 

Net  loss attributable

to Dryships Inc.


$

(18,202)


$

(18,210)


$

(65,658)


$

(134,845)

 

 

 

 

 

 

 

 

 

 

 

Loss per common share, basic and diluted

$

(0.05)

$

(0.05)

$

(0.17)

$

(0.35)

 

Weighted average number of shares, basic and diluted

 

380,152,244

 

382,657,244

 

380,152,244

 

382,657,244

 

 

 

 

 

 

 

 

 

 

 


























Dryships Inc.


Unaudited Condensed Consolidated Balance Sheets


(Expressed in Thousands of U.S. Dollars)

 

December 31, 2012

   




June 30, 2013

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and restricted cash (current and non-current)

$

720,458

$

511,437

 

Other current assets  

 

338,446

 

414,860

 

Advances for vessels and rigs under construction and acquisitions

 

1,201,807

 

1,098,106

 

Vessels, net

 

2,059,570

 

2,310,833

 

Drilling rigs, drillships, machinery and equipment, net

 

4,446,730

 

4,422,807

 Other non-current assets

 

111,480

 

146,023

 

Total assets

 

8,878,491

 

8,904,066

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

4,386,715

 

4,436,193

 

Total other liabilities

 

623,757

 

585,993

 

Total stockholders’ equity

 

3,868,019

 

3,881,880

 

Total liabilities and stockholders’ equity

$

8,878,491

$

8,904,066

 

 

 

 

 

 

 



















Adjusted EBITDA Reconciliation

Adjusted EBITDA represents earnings 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 loss to Adjusted EBITDA:

(Dollars in thousands)

 

Three Months Ended June 30, 2012

 

Three Months Ended June 30, 2013

 

Six Months Ended June 30, 2012

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$     (18,202)             

 

$       (18,210)                 

 

$   (65,658)

 

$     (134,845)   

 

 

 

 

 

 

 

 

 

 

 

Add: Net interest expense

 

49,768

 

56,008

 

100,545

 

112,870

 

Add: Depreciation and amortization

 

84,079

 

85,758

 

166,034

 

168,418

 

Add: Impairment losses and other

 

-

 

1,443

 

-

 

76,783

 

Add: Income taxes

 

11,596

 

10,411

 

21,628

 

24,575

 

Add: Gain/(loss) on interest rate swaps

 

12,963

 

(23,082)

 

21,714

 

(23,478)

 

Adjusted EBITDA

 

$     140,204

 

$       112,328      

 

$    244,263

 

$      224,323    

 




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Conference Call and Webcast: August 8, 2013

As announced, the Company’s management team will host a conference call, on Thursday, August 8, 2013 at 9:00 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 15, 2013. 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 10 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 8 ultra deepwater drillships, 3 of which are scheduled to be delivered to Ocean Rig during 2013 and 1 of which is scheduled to be delivered during 2015.  DryShips owns a fleet of 42 drybulk carriers (including newbuildings), comprising 12 Capesize, 28 Panamax and 2 Supramax with a combined deadweight tonnage of approximately 4.4 million tons, and 10 tankers, comprising 4 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.3 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


Forward-Looking Statement

Matters discussed in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with such safe harbor legislation.

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 and drilling dayrates and drybulk vessel, drilling rig and drillship values, failure of a seller to deliver one or more drilling rigs, drillships or drybulk vessels, failure of a buyer to accept delivery of a drilling rig, drillship, or vessel, inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for drybulk commodities or oil, changes in demand that may affect attitudes of time charterers and customer drilling programs, scheduled and unscheduled drydockings and upgrades, changes in our operating expenses, including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations 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 U.S. 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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