DryShips Acquires A Second Large Gas Carrier For $84 Million

DryShips Inc. DRYS is the nano-cap drybulk carrier and offshore supporter that gained notoriety in 2016 for a 1,500 percent run in mere weeks. However, its reputation is turning, as the stock has seen shares plummet 95 percent since the start of 2017, likely due to investors' increasing frustration with many aspects of the company, including a total of four reverse stock splits in the past year alone.

But the company isn't going down without a fight and has been active in raising hundreds of millions of dollars — and also spending hundreds of millions of dollars in acquiring modern tanker vessels.

Latest Acquisition

On Monday, DryShips said that it exercised its second option under a previously announced option agreement to acquire up to four Very Large Gas Carriers (VLGCs) for $83.5 million.

Approximately 25 percent of the cost will be paid on closing, which is expected to occur at some point in March. The remaining cost will be payable in installments until the vessel is received from Hyundai Heavy Industries in September of this year.

The VLGCs will be employed on a fixed rate time charter with a five-year firm duration to an oil major. DryShips expects the total gross backlog will be $54.0 million, or $92.7 million including an option three-year extension.

George Economou, chairman and CEO commented: "We are very pleased to have declared our second option to purchase a high specification VLGC with long term employment to an oil major at above market rates. This second investment in the gas carrier segment marks our confidence to the expected positive long-term fundamentals of the gas market and allows us to deploy the Company's available liquidity immediately."

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Related Link: DryShips Initiates New Quarterly Dividend, Will Total $0.07/Share