·
|
on
an actual basis;
|
·
|
on
an adjusted basis to give effect to (i)
the aggregate payment of $8.7 million of dividends
declared and paid in August 2008; (ii) the additional drawdown of $126.4
million for the vessel Flecha of which $10.6 million is payable in the
short term; (iii) the additional drawdown of $51.6 million for
the vessel Sorrento of which $5.3 million is payable in the short term;
(iv) the additional drawdown of $15.9 million for the two drillships under
construction which is payable in the long term; (v) the additional
drawdown of $250 million for Ocean Rig, used for the repayment of the
outstanding bond of $252.3 million which was paid during September 2008,
which is payable in the short term; (vi) the loan installment payments of
$115.8 million paid in July, August and September of 2008; (vii) the
additional drawdown of $750 million for Ocean Rig, which was used to repay
$508.5 million of short term and $267.5 million of long term existing
loan indebtedness. Of this drawdown $70 million is repayable in the
short term and;
|
·
|
on
a further adjusted basis giving effect to (i) our issuance and sale of
4,940,097 shares of common stock pursuant to our Sales Agreement with
Cantor Fitzgerald & Co dated October 12, 2007, at an assumed offering
price of $35.49 per share, the last reported closing price of our common
stock on September 30, 2008, resulting in net proceeds of $172.3 million
including issuance costs of $3.1 million on the basis of 1.75% commission
charged to our last sales;
|
As
of June 30, 2008
|
||||||||||||
Actual
|
As
Adjusted
(1)
|
As
Further Adjusted (2)
|
||||||||||
(in
thousands of U.S. dollars)
|
||||||||||||
Debt
|
||||||||||||
Current
portion of long-term debt
|
$ | 992,137 | $ | 451,362 | $ | 451,362 | ||||||
Total
long-term debt, net of current portion
|
1,900,118 | 2,490,652 | 2,490,652 | |||||||||
Total
debt
|
$ | 2,892,255 | $ | 2,942,014 | $ | 2,942,014 | ||||||
Shareholders’
equity
|
||||||||||||
Preferred
stock, $0.01 par value; 500,000,000 shares authorized, none
issued
|
- | - | - | |||||||||
Common
stock, $0.01 par value; 1,000,000,000 shares authorized, 43,550,000 shares
issued and outstanding at June 30, 2008; 48,490,097 shares as further
adjusted at June 30, 2008.
|
435 | 435 | 484 | |||||||||
Additional
paid-in capital
|
920,821 | 920,821 | 1,093,027 | |||||||||
Retained
earnings
|
1,027,086 | 1,018,376 | 1,018,376 | |||||||||
Total
shareholders’ equity
|
1,948,342 | 1,939,632 | 2,111,887 | |||||||||
Total
capitalization
|
$ | 4,840,597 | $ | 4,881,646 | $ | 5,053,901 |
(1)
|
There
have been no significant adjustments to our capitalization since June 30,
2008, as so adjusted.
|
(2)
|
Assumes
a sale price of $35.49 per share, which was the last reported closing
price of our common stock on September 30,
2008.
|
Page
|
||||
Unaudited
Interim Condensed Consolidated Balance Sheets as of December 31, 2007 and
June 30, 2008
|
F-2
|
|||
Unaudited
Interim Condensed Consolidated Statements of Income for the six month
periods ended June 30, 2007 and 2008
|
F-3
|
|||
Unaudited
Interim Condensed Consolidated Statements of Stockholders' Equity for the
six month periods ended June 30, 2008
|
F-4
|
|||
Unaudited
Interim Condensed Consolidated Statements of Cash Flows for the six month
periods ended June 30, 2007 and 2008
|
F-5
|
|||
Notes
to Unaudited Interim Condensed Consolidated Financial
Statements
|
F-6
|
|||
DRYSHIPS
INC.
|
|||||
Unaudited
Interim Condensed Consolidated Balance Sheets
|
|||||
December
31, 2007 and June 30, 2008
|
|||||
(Expressed
in thousands of U.S. Dollars – except for share and per share
data)
|
December
31, 2007
(as
adjusted)
|
June
30, 2008
|
|||||||
ASSETS
|
(Notes
1 and 4)
|
|||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 111,068 | $ | 293,879 | ||||
Restricted
cash (Note 11)
|
6,791 | 8,103 | ||||||
Trade
accounts receivable, net of allowance for doubtful
receivables of $0 and $ 957 for December 31, 2007 and June 30, 2008
respectively
|
9,185 | 76,356 | ||||||
Insurance
claims
|
4,807 | 5,408 | ||||||
Due
from related parties (Note 5)
|
9,963 | 12,089 | ||||||
Inventories
(Note 6)
|
3,912 | 3,461 | ||||||
Financial
instruments (Note 12)
|
- | 620 | ||||||
Prepayments
and advances
|
7,309 | 31,829 | ||||||
Vessel
held for sale (Note 8)
|
- | 24,083 | ||||||
Total
current assets
|
153,035 | 455,828 | ||||||
FIXED
ASSETS, NET:
|
||||||||
Advances
for vessels under construction and acquisitions (Note 7)
|
118,652 | 322,990 | ||||||
Vessels,
net (Note 8)
|
1,643,867 | 1,985,992 | ||||||
Drilling
rigs, net (Note 9)
|
- | 1,391,924 | ||||||
Other
assets, net of accumulated depreceation $891,
|
- | 423 | ||||||
Total
fixed assets, net
|
1,762,519 | 3,701,329 | ||||||
OTHER
NON CURRENT ASSETS:
|
||||||||
Long
term investments (Note 10)
|
405,725 | - | ||||||
Goodwill
(Note 10)
|
- | 693,980 | ||||||
Financial
instruments (Note 12)
|
- | 13,066 | ||||||
Restricted
cash (Note 11)
|
20,000 | 100,000 | ||||||
Intangible
assets (Note 10)
|
- | 14,063 | ||||||
Other
|
3,153 | 2,030 | ||||||
Total
non current assets
|
428,878 | 823,139 | ||||||
Total
assets
|
$ | 2,344,432 | $ | 4,980,296 | ||||
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Current
portion of long-term debt (Note 11)
|
$ | 194,999 | $ | 986,172 | ||||
Accounts
payable
|
7,166 | 20,677 | ||||||
Accrued
liabilities
|
20,223 | 41,185 | ||||||
Deferred
revenue
|
16,916 | 20,375 | ||||||
Financial
instruments (Note 12)
|
- | 7,516 | ||||||
Other
current liabilities
|
- | 4,912 | ||||||
Total
current liabilities
|
239,304 | 1,080,837 | ||||||
NON
CURRENT LIABILITIES
|
||||||||
Fair
value of below market acquired time charter
|
32,509 | 33,771 | ||||||
Long
term debt, net of current portion (Note 11)
|
1,048,779 | 1,891,008 | ||||||
Financial
instruments (Note 12)
|
1,768 | 1,923 | ||||||
Other
non-current liabilities
|
343 | 2,958 | ||||||
Total
non current liabilities
|
1,083,399 | 1,929,660 | ||||||
MINORITY
INTERESTS (Note 10)
|
- | 21,457 | ||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred
stock, $ 0.01 par value; 30,000,000 shares authorized, none issued at
December 31, 2007 and 500,000,000 shares authorized none issued at June
30, 2008
|
- | - | ||||||
Common
stock, $0.01 par value; 75,000,000 and 1,000,000,000 shares authorized at
December 31, 2007 and June 30, 2008 respectively; 36,681,097 and
43,550,000 shares issued and outstanding at December 31, 2007 and June 30,
2008 respectively.
|
367 | 435 | ||||||
Additional
paid-in capital (Note 13)
|
454,538 | 920,821 | ||||||
Retained
earnings
|
566,824 | 1,027,086 | ||||||
Total
stockholders' equity
|
1,021,729 | 1,948,342 | ||||||
Total
liabilities and stockholders' equity
|
$ | 2,344,432 | $ | 4,980,296 | ||||
The
accompanying notes are an integral part of these unaudited interim
condensed consolidated financial statements.
|
Unaudited
Interim Condensed Consolidated Statements of Income
|
|||||
For
the six month periods ended June 30, 2007 and 2008
|
|||||
(Expressed
in thousands of U.S. Dollars – except for share and per share
data)
|
|||||
Six
Months Ended June 30,
|
||||||||
2007
(as
adjusted)
|
2008
|
|||||||
(Notes
1 and 4)
|
||||||||
REVENUES:
|
||||||||
Voyage
revenues
|
$ | 199,171 | $ | 482,998 | ||||
Voyage
revenues-related party (Note 5)
|
- | 7,986 | ||||||
Revenue
from drilling contracts
|
- | 43,795 | ||||||
199,171 | 534,779 | |||||||
EXPENSES:
|
||||||||
Voyage
expenses
|
11,461 | 25,964 | ||||||
Voyage
expenses – related party (Note 5)
|
2,431 | 6,006 | ||||||
Gain on
sale of bunkers
|
(1,635 | ) | (3,878 | ) | ||||
Vessels’
operating expenses
|
29,967 | 37,650 | ||||||
Drilling
rigs operating expenses
|
- | 13,388 | ||||||
Depreciation
|
34,025 | 57,935 | ||||||
Gain
on sale of vessels (Note 8)
|
(85,634 | ) | (160,258 | ) | ||||
Management
fees – related party (Note 5)
|
4,641 | 5,890 | ||||||
General
and administrative expenses
|
1,979 | 5,075 | ||||||
General
and administrative expenses–related parties (Note 5)
|
1,916 | 14,382 | ||||||
Operating
income
|
200,020 | 532,625 | ||||||
OTHER
INCOME (EXPENSES):
|
||||||||
Interest
and finance costs
|
(23,886 | ) | (44,216 | ) | ||||
Interest
and finance costs – related party (Note 5)
|
(614 | ) | - | |||||
Interest
income
|
1,738 | 5,672 | ||||||
Other,
net
|
1,353 | 6,578 | ||||||
Total
other income (expenses), net
|
(21,409 | ) | (31,966 | ) | ||||
INCOME
BEFORE INCOME TAXES
|
178,611 | 500,659 | ||||||
Income
taxes
|
- | (867 | ) | |||||
NET
INCOME,AFTER TAXES AND BEFORE EQUITY
IN
LOSS OF INVESTEE AND MINORITY INTEREST.
|
178,611 | 499,792 | ||||||
Equity
in loss of investees (Note 10)
|
- | (6,893 | ) | |||||
Minority
interest (Note 10)
|
- | (16,813 | ) | |||||
NET
INCOME
|
$ | 178,611 | $ | 476,086 | ||||
EARNINGS PER COMMON
SHARES (Note 15)
|
||||||||
Basic
|
$ | 5.03 | $ | 11.85 | ||||
Diluted
|
$ | 5.03 | $ | 11.85 | ||||
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES (Note 15)
|
||||||||
Basic
|
35,490,097 | 40,173,941 | ||||||
Diluted
|
35,490,097 | 40,177,016 | ||||||
The
accompanying notes are an integral part of these unaudited interim
condensed consolidated financial statements
|
Unaudited
Interim Condensed Consolidated Statements of Stockholders’
Equity
|
|||||||||||||
For
the six month period ended June 30, 2008
|
|||||||||||||
(Expressed
in thousands of U.S. Dollars – except for share and per share
data)
|
|||||||||||||
Common
Stock
|
Additional
Paid-in
Capital
|
|||||||||||||||||||||||
Comprehensive
Income
|
#
of
Shares
|
Par
Value
|
Retained
|
|||||||||||||||||||||
Earnings
|
Total
|
|||||||||||||||||||||||
BALANCE,
December 31, 2007
|
36,681,097 | $ | 367 | $ | 454,538 | $ | 569,316 | $ | 1,024,221 | |||||||||||||||
-Cumulative
effect adjustment from change in accounting policy for dry-docking
costs
|
- | - | - | (2,492 | ) | (2,492 | ) | |||||||||||||||||
BALANCE,
December 31, 2007 (as adjusted)
|
36,681,097 | $ | 367 | $ | 454,538 | $ | 566,824 | $ | 1,021,729 | |||||||||||||||
-
Net income
|
476,086 | - | - | 476,086 | 476,086 | |||||||||||||||||||
-Issuance
of common stock
|
5,868,903 | 58 | 454,175 | - | 454,233 | |||||||||||||||||||
-Issuance
of restricted shares
|
1,000,000 | 10 | (10 | ) | - | - | ||||||||||||||||||
-Stock
based compensation
|
- | 12,118 | - | 12,118 | ||||||||||||||||||||
-
Dividends declared and paid ($ 0.40 per share)
|
- | - | (15,824 | ) | (15,824 | ) | ||||||||||||||||||
Comprehensive
income
|
$ | 476,086 | ||||||||||||||||||||||
BALANCE,
June 30, 2008
|
43,550,000 | 435 | 920,821 | 1,027,086 | 1,948,342 |
Unaudited
Interim Condensed Consolidated Statements of Cash Flows
|
|||||||
For
the six month periods ended June 30, 2007 and 2008
|
|||||||
(Expressed
in thousands of U.S. Dollars)
|
Six
Months Ended June 30,
|
||||||||
2007
(as
adjusted)
(Notes
1 and 4)
|
2008
|
|||||||
Cash
Flows from Operating Activities:
|
||||||||
Net
income
|
$ | 178,611 | $ | 476,086 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Depreciation
|
34,025 | 57,935 | ||||||
Amortization
and write-off of financing costs
|
1,414 | 9,760 | ||||||
Amortization
of fair value of acquired time charter agreements
|
(2,655 | ) | (14,557 | ) | ||||
Stock
based compensation
|
- | 12,118 | ||||||
Gain
on sale of vessels
|
(85,634 | ) | (160,258 | ) | ||||
Change
in fair value of financial instruments
|
(3,763 | ) | (6,005 | ) | ||||
Minority
interest
|
- | 16,813 | ||||||
Equity
in loss of investee
|
- | 6,893 | ||||||
Amortization
of free lubricants benefit
|
(170 | ) | (182 | ) | ||||
Changes
in operating assets and liabilities:
|
||||||||
Trade
accounts receivable
|
(3,902 | ) | (33,130 | ) | ||||
Insurance
claims
|
(5,566 | ) | (715 | ) | ||||
Due
from related parties
|
(272 | ) | (2,126 | ) | ||||
Inventories
|
(183 | ) | 501 | |||||
Prepayments
and advances
|
(732 | ) | 13,234 | |||||
Accounts
payable
|
(3,014 | ) | 7,070 | |||||
Due
to related parties
|
(86 | ) | - | |||||
Other
current liabilities
|
- | (7,865 | ) | |||||
Accrued
liabilities
|
4,203 | (5,709 | ) | |||||
Deferred
revenue
|
4,804 | (89 | ) | |||||
Net
Cash provided by Operating Activities
|
117,080 | 369,774 | ||||||
Cash
Flows from Investing Activities:
|
||||||||
Insurance
proceeds
|
- | 114 | ||||||
Business
acquisitions, net of cash acquired
|
- | (933,925 | ) | |||||
Advances
for vessel acquisitions / rigs under construction
|
(5,466 | ) | (241,539 | ) | ||||
Vessels
acquisitions and improvements
|
(441,975 | ) | (495,646 | ) | ||||
Drilling
rigs, equipment and other improvements
|
- | (1,911 | ) | |||||
Proceeds
from sale of vessels
|
252,114 | 275,786 | ||||||
Change
in restricted cash
|
- | (80,814 | ) | |||||
Net
Cash used in Investing Activities
|
(195,327 | ) | (1,477,935 | ) | ||||
Cash
Flows from Financing Activities:
|
||||||||
Payments
of long-term debt
|
(150,000 | ) | (382,240 | ) | ||||
Proceeds
from long-term credit facility
|
300,860 | 1,275,550 | ||||||
Proceeds
from short-term credit facility
|
43,400 | - | ||||||
Payment
of short-term credit facility
|
(68,400 | ) | (30,076 | ) | ||||
Change
in restricted cash
|
(124 | ) | - | |||||
Net
proceeds from common stock issuance
|
- | 454,233 | ||||||
Dividends
paid
|
(14,196 | ) | (15,824 | ) | ||||
Payment
of financing costs
|
(2,364 | ) | (10,671 | ) | ||||
Net
Cash provided by Financing Activities
|
109,176 | 1,290,972 | ||||||
Net
increase in cash and cash equivalents
|
30,929 | 182,811 | ||||||
Cash
and cash equivalents at beginning of period
|
2,537 | 111,068 | ||||||
Cash
and cash equivalents at end of period
|
$ | 33,466 | $ | 293,879 | ||||
SUPPLEMENTAL
CASH FLOW INFORMATION
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 23,534 | $ | 31,827 | ||||
Income
taxes
|
- | $ | 541 | |||||
Non-cash
financing activities:
|
||||||||
Issuance
of restricted stock
|
$ | - | $ | 10 |
The
accompanying notes are an integral part of these unaudited interim
condensed consolidated financial
statements
|
Ship-owning
Companies with vessels in operations at June 30, 2008
|
Country of
Incorporation
|
Vessel
|
||||
1.
|
Tolan
Shipping Company Limited (“Tolan”)
|
Malta
|
Tonga
|
|||
2.
|
Malvina
Shipping Company Limited (“Malvina”)
|
Malta
|
Coronado
|
|||
3.
|
Arleta
Navigation Company Limited (“Arleta”)
|
Malta
|
Xanadu
|
|||
4.
|
Selma
Shipping Company Limited (“Selma”)
|
Malta
|
La
Jolla
|
|||
5.
|
Samsara
Shipping Company Limited (“Samsara”)
|
Malta
|
Ocean
Crystal
|
|||
6.
|
Lansat
Shipping Company Limited (“Lansat”)
|
Malta
|
Paragon
|
|||
7.
|
Farat
Shipping Company Limited (“Farat”)
|
Malta
|
Toro
|
|||
8.
|
Iguana
Shipping Company Limited (“Iguana”)
|
Malta
|
Iguana
|
|||
9.
|
Borsari
Shipping Company Limited (“Borsari”)
|
Malta
|
Catalina
|
|||
10.
|
Onil
Shipping Company Limited (“Onil”)
|
Malta
|
Padre
|
|||
11.
|
Fabiana
Navigation Company Limited (“Fabiana Navigation”)
|
Malta
|
Alameda
|
|||
12.
|
Felicia
Navigation Company Limited (“Felicia”)
|
Malta
|
Solana
|
|||
13.
|
Karmen
Shipping Company Limited (“Karmen”)
|
Malta
|
Sonoma
|
|||
14.
|
Thelma
Shipping Company Limited (“Thelma”)
|
Malta
|
Manasota
|
|||
15.
|
Celine
Shipping Company Limited (“Celine”)
|
Malta
|
Mendocino
|
|||
16.
|
Annapolis
Shipping Company Limited (“Annapolis”)
|
Malta
|
Lacerta
|
|||
17.
|
Tempo
Marine Co. (“Tempo”)
|
Marshall
Islands
|
Maganari
|
|||
18.
|
Star
Record Owning Company Limited (“Star”)
|
Marshall
Islands
|
Ligari
|
|||
19.
|
Argo
Owning Company Limited (“Argo”)
|
Marshall
Islands
|
Redondo
|
|||
20.
|
Rea
Owning Company Limited (“Rea”)
|
Marshall
Islands
|
Ecola
|
|||
21.
|
Gaia
Owning Company Limited (“Gaia”)
|
Marshall
Islands
|
Samsara
|
|||
22.
|
Kronos
Owning Company Limited (“Kronos”)
|
Marshall
Islands
|
Primera
|
|||
23.
|
Trojan
Maritime Co. (“Trojan”)
|
Marshall
Islands
|
Brisbane
|
|||
24.
|
Dione
Owning Company Limited (“Dione”)
|
Marshall
Islands
|
Marbella
|
|||
25.
|
Phoebe
Owning Company Limited (“Phoebe”)
|
Marshall
Islands
|
Majorca
|
|||
26.
|
Uranus Owning
Company Limited (“Uranus”)
|
Marshall
Islands
|
Heinrich
Oldendorff
|
|||
27.
|
Selene
Owning Company Limited (“Selene”)
|
Marshall
Islands
|
Bargara
|
|||
28.
|
Tethys
Owning Company Limited (“Tethys”)
|
Marshall
Islands
|
Capitola
|
|||
29.
|
Ioli
Owning Company Limited (“Ioli”)
|
Marshall
Islands
|
Clipper
Gemini
|
|||
30.
|
Iason
Owning Company Limited (“Iason”)
|
Marshall
Islands
|
Oregon
|
|||
31.
|
Orpheus
Owning Company Limited (“Orpheus”)
|
Marshall
Islands
|
Avoca
|
|||
32.
|
Team
up Owning Company Limited (“Team-up”)
|
Marshall
Islands
|
Saldanha
|
|||
33.
|
Iokasti
Owning Company Limited (“Iokasti”)
|
Marshall
Islands
|
VOC
Galaxy
|
|||
34.
|
Boone
Star Owners Inc. (“Boone”)
|
Marshall
Islands
|
Samatan
|
|||
35.
|
Norwalk
Star Owners Inc. (“Norwalk”)
|
Marshall
Islands
|
Capri
|
|||
36.
|
Ionian
Traders Inc.(“Ionian”)
|
Marshall
Islands
|
Positano
|
|||
37.
|
NT
LLC Investors Ltd. (“NT”)
|
Marshall
Islands
|
Conquistador
|
|||
38.
|
Dalian
Star Owners Inc. (“Dalian”)
|
Marshall
Islands
|
Mystic
|
|||
39.
|
Zatac
Shipping Company Limited (“Zatac”)
|
Malta
|
Waikiki
(Note 8)
|
|||
40.
|
Aegean
Traders Inc. (“Aegean”)
|
Marshall
Islands
|
Sorrento
(Note 7)
|
|||
41.
|
Creatan
Shareholders Inc. (“Cretan”)
|
Marshall
Islands
|
Flecha
(Note 7)
|
|||
42.
|
Thassos
Traders Inc. (“Thassos”)
|
Marshall
Islands
|
Panamax
(Note 8)
|
|||
43.
|
Milos
Traders Inc (“Milos”)
|
Marshall
Islands
|
Panamax
(Note 8)
|
|||
Ship-owning
Companies with vessels under construction
|
Country of
Incorporation
|
Hull
Number
|
||||
44.
|
Roscoe
Marine Ltd. (“Roscoe”)
|
Marshall
Islands
|
Hull
1518A
|
|||
45.
|
Monteagle
Shipping S.A. (“Monteagle”)
|
Marshall
Islands
|
Hull
1519A
|
|||
46.
|
Iktinos
Owning Company Limited (“Iktinos”)
|
Marshall
Islands
|
Hull
SS058
|
|||
47.
|
Kallikrates
Owning Company Limited (“Kallikrates”)
|
Marshall
Islands
|
Hull
SS059
|
|||
48.
|
Mensa
Enterprises Inc. (“Mensa”)
|
Marshall
Islands
|
Hull
0002
|
|||
49.
|
Mandarin
Shipholding Co. (“Mandarin”)
|
Marshall
Islands
|
Hull
0003
|
|||
50.
|
Faedon
Owning Company Limited (“Faedon”)
|
Marshall
Islands
|
Hull
2089
|
|||
51.
|
Belulu
Limited (“Belulu”)
|
Marshall
Islands
|
Hull
1128
|
|||
52.
|
Drillship Kithira
Owners Inc. (“Kithira”)
|
Marshall
Islands
|
Drillship Hull
1865
|
|||
53.
|
Drillship Skopelos
Owners Inc.
(“Skopelos”)
|
Marshall
Islands
|
Drillship Hull
1866
|
Ship-owning
Companies with vessels sold
|
Country
of
Incorporation
|
Vessel
|
||||
54.
|
Atlas
Owning Company Limited (“Atlas”)
|
Marshall
Islands
|
Menorca
(sold – June 2008)
|
|||
55.
|
Maternal
Owning Company Limited (“Maternal”)
|
Marshall
Islands
|
Lanzarote
(sold – June 2008)
|
|||
56.
|
Royerton
Shipping Company Limited (“Royerton”)
|
Malta
|
Netadola (sold
– April 2008)
|
|||
57.
|
Lancat
Shipping Company Limited (“Lancat”)
|
Malta
|
Matira
(sold – February 2008)
|
|||
58.
|
Paternal
Owning Company Limited (“Paternal”)
|
Marshall
Islands
|
Formentera
(sold – December 2007)
|
|||
59.
|
Fago
Shipping Company Limited (“Fago”)
|
Malta
|
Lanikai
(sold – July 2007)
|
|||
60.
|
Hydrogen
Shipping Company Limited (“Hydrogen”)
|
Malta
|
Mostoles
(sold – July 2007)
|
|||
61.
|
Madras
Shipping Company Limited (“Madras”)
|
Malta
|
Alona
(sold – June 2007)
|
|||
62.
|
Seaventure
Shipping Limited (“Seaventure”)
|
Marshall
Islands
|
Hille
Oldendorff (sold – June 2007)
|
|||
63.
|
Classical
Owning Company Limited (“Classical”)
|
Marshall
Islands
|
Delray
(sold – May 2007)
|
|||
64.
|
Oxygen
Shipping Company Limited (“Oxygen”)
|
Malta
|
Shibumi
(sold – April 2007)
|
|||
65.
|
Human
Owning Company Limited (“Human”)
|
Marshall
Islands
|
Estepona
(sold – April 2007)
|
|||
66.
|
Helium
Shipping Company Limited (“Helium”)
|
Malta
|
Striggla
(sold – January 2007)
|
|||
67.
|
Blueberry
Shipping Company Limited (“Blueberry”)
|
Malta
|
Panormos
(sold – January 2007)
|
|||
68.
|
Platan
Shipping Company Limited (“Platan”)
|
Malta
|
Daytona
(sold – January 2007)
|
|||
69.
|
Silicon
Shipping Company Limited (“Silicon”)
|
Malta
|
Flecha
(sold – December 2006)
|
|||
Other
companies
|
Activity
|
|||||
70.
|
Wealth
Management Inc. (“Wealth”)
|
Marshall
Islands
|
Cash
Manager
|
|||
71.
|
Primelead
Limited (“Primelead”)
|
Cyprus
|
Investment
Company
|
|
Acquisition
of Ocean Rig SA and its wholly owned subsiadiries (collectively as “Ocean
Rig”)
|
|
The
Company’s Manager
|
a)
|
SFAS 157
“Fair Value Measurements”: Effective January 1, 2008,
the Company adopted FASB Statement No. 157 “Fair Value Measurements”
(“SFAS No. 157”) which had no effect on the Company’s consolidated
financial statements. In addition, on January 1, 2008, the Company made no
election to account for its monetary assets and liabilities at fair values
as allowed by FASB statement No. 159 “The Fair Value Option for Financial
Assets and Financial Liabilities” (“SFAS No.
159”).
|
b)
|
Stock based
compensation: Stock-based compensation represents non-vested common
stock granted to employees for their services. Following the provisions of
SFAS No. 123 (R) “Share-Based Payment”, the Company calculates the total
compensation expense for the award based on its fair value on
the grant date and amortizes the total compensation expense as if it were
one single award with one expected life on a straight-line basis over the
vesting period of the award. Expense is included in “General and
administrative expenses – related parties” in the consolidated statements
of income (Note 5).
|
c)
|
Business
Combinations: In accordance with SFAS No. 141, “Business
Combinations” (“SFAS No. 141”), the purchase price of acquired
businesses or properties is allocated to tangible and identified
intangible assets and liabilities based on their respective fair values.
Costs incurred in relation to pursuing any business acquisition are
capitalized when they are directly related to the business acquisition and
the acquisition is probable. Acquisition costs also include fees paid to
bankers in relation to obtaining related financing. Such financing costs
are an element of the effective interest cost of the debt; therefore they
are classified as a contra to debt upon the business combination and the
receipt of the related debt proceeds and are amortized using the effective
interest method through the term of the respective
debt.
|
d)
|
Goodwill
and intangible assets: Goodwill represents the excess of the
purchase price over the estimated fair value of net assets acquired.
Goodwill is reviewed for impairment whenever events or
circumstances indicate possible impairment in accordance with SFAS No. 142
“Goodwill and Other Intangible Assets”. This statement requires that
goodwill and other intangible assets with an indefinite life not be
amortize but instead tested for impairment at least annually. The Company
will test for impairment each year at November,
30.
|
e)
|
Segment reporting: SFAS No. 131
“Disclosure about Segments of an Enterprise and Related Information”
requires descriptive information about its reportable operating segments.
Operating segments, as defined, are components of an enterprise about
which separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how to
allocate resources and in assessing performance. The Company reports
financial information and evaluates its operations and operating results
by type of vessel and not by the length or type of ship employment for its
customers. The Company does not use discrete financial information to
evaluate the operating results for each such type of charter. Although
revenue can be identified for different types of charters or for charters
with different duration, management cannot and does not identify expenses,
profitability or other financial information for these charters.
Furthermore, when the Company charters a vessel to a charterer, the
charterer is free to trade the vessel worldwide and, as a result, the
disclosure of geographic information is impracticable. Accordingly, the
reportable segments of the Company are the drybulk carriers segment and
the drilling rigs segment.
|
f)
|
Fixed
Assets, Net:
|
(i)
|
Drybulk
Carrier vessels are stated at cost, which consists of the contract price
and any material expenses incurred upon acquisition (initial repairs,
improvements, delivery expenses and other expenditures to prepare the
vessel for its initial voyage). Subsequent expenditures for major
improvements are also capitalized when they appreciably extend the useful
life, increase the earning capacity or improve the efficiency or safety of
the vessels. Otherwise these amounts are charged to expense as incurred.
|
The
cost of each of the Company’s vessels is depreciated beginning when the
vessel is ready for its intended use, on a straight-line
basis over the vessel’s remaining economic useful life, after considering
the estimated residual value (vessel’s residual value is equal to the
product of its lightweight tonnage and estimated scrap rate per ton). With
the exception of the vessel Tonga, management estimates the useful life of
the Company’s vessels to be 25 years from the date of initial delivery
from the shipyard. The useful life of the vessel Tonga is estimated to be
26 years, which coincides with the validity of the class certificate. When
regulations place limitations over the ability of a vessel to trade on a
worldwide basis, its remaining useful life is adjusted at the date such
regulations are adopted.
|
|
(ii)
|
Drilling
rigs are stated at cost less accumulated depreciation. Such costs include
the cost of adding/replacing part of drilling rig machinery and equipment
when that cost is incurred if the recognition criteria are met. The
carryng amount of those parts that are replaced is written
off.
|
|
Machinery
and equipment includes principally IT and office equipment and is recorded
at cost and depreciated on a straight-line basis over estimated useful
lives. The rig’s residual values, useful lives and methods of depreciation
are reviewed based upon both technical and economic evaluations, and
adjusted if appropriate, at each financial year
end.
|
g)
|
Accounting
for Drydocking Costs:
|
(i)
|
Drybulk Carrier vessels:
During the first quarter of 2008, the Company changed the method of
accounting for dry-docking costs from the deferral method to the direct
expense method. This change was effected in the accompanying unaudited
interim condensed consolidated financial statements in accordance
with FASB Statement No. 154 “Accounting Changes and Error
Corrections”, which requires that a change in accounting
policy should be retrospectively applied to all prior periods
presented, unless it is impractical to determine the prior period
impacts.Please also refer to Notes 1 and
4.
|
(ii)
|
Drilling rigs: The
Company follows the direct expense method of accounting for drydocking
costs whereby actual costs incurred are expensed in the period
incurred.
|
h)
|
Accounting
for Revenue and Related Expenses:
|
(i)
|
Drybulk Carrier
vessels: The Company
generates its revenues from charterers for the charterhire of its vessels.
Vessels are chartered using time and bareboat charters, where a contract
is entered into for the use of a vessel for a specific period of time and
a specified daily charterhire rate. If a charter agreement exists, the
price is fixed, service is provided and collection of the related revenue
is reasonably assured, revenue is recognized as it is earned ratably on a
straight line basis over the duration of the period of each time charter
as adjusted for the off-hire days that the vessel spends undergoing
repairs, maintenance and upgrade work depending on the condition and
specification of the
vessel. Deferred revenue includes cash received prior to the
balance sheet date and is related to revenue earned after such
date.
|
For
vessels operating in pooling arrangements, the Company earns a portion of
total revenues generated by the pool, net of expenses incurred by the
pool. The amount allocated to each pool participant vessel, including the
Company’s vessels, is determined in accordance with an agreed-upon
formula, which is determined by points awarded to each vessel in the pool
based on the vessel’s age, design and other performance characteristics.
Revenue under pooling arrangements is accounted for on the accrual basis
and is recognized when the collectibility has been reasonably assured, an
agreement with the pool exists, price is fixed and service is provided.
The allocation of such net revenue may be subject to future adjustments by
the pool however, historically, such changes have not been
material.
|
|
Voyage related and vessel operating costs are expensed as incurred. Under a time charter, specified voyage costs, such as fuel and port charges are paid by the charterer and other non-specified voyage expenses, such as commissions are paid by the Company. Vessel operating costs including crews, maintenance and insurance are paid by the Company. |
(ii)
|
Drilling
rigs: The majority of
revenues are derived from contracts including day rate based compensation
for drilling services. In connection with drilling contracts the Company
may receive revenues for preparation and mobilization of equipment and
personnel or for capital improvements to the drilling rigs and day rate or
fixed price mobilization and demobilization fees. For each contract the
Company determines whether the contract, for accounting purposes, is a
multiple element arrangement and, if so, identifies all deliverables
(elements). For each element the Company determines how and when to
recognize revenue. There are two types of drilling contracts: well
contracts and term contracts.
|
·
|
Well
contracts: These are
contracts where the assignment is to drill a certain number of wells.
Revenue from day rate based compensation for drilling operations is
recognized in the period during which the services are rendered at the
rates established in the
contracts.
|
·
|
Term
contracts: These are contracts where the assignment is to operate
the unit for a specified period of time. For these types of contracts the
Company determines whether the arrangement is a multi element arrangement
containing both a lease element and drilling services
element.
|
i)
|
Earnings per Common
Share: Basic
earnings per common share are computed by dividing net income available to
common stockholders by the weighted average number of common shares
outstanding during the year. Diluted earnings per common share reflects
the potential dilution that could occur if convertible securities or
rights under contracts to issue common stock were exercised and
if non vested common stock becomes
vested.
|
|
j)
|
Financial
Instruments: Financial Accounting
Standards Board (FASB) Statement No. 133 “Accounting for Derivative
Instruments and Certain Hedging Activities”, require all derivative
instruments be recorded on the balance sheet as either an asset or
liability measured at its fair value, with changes in fair value
recognized in earnings unless specific hedge accounting criteria are
met.
|
k)
|
Taxes:
Income taxes have
been provided based upon the tax laws and rates in effect in the countries
in which operations are conducted and income is earned. There
is no expected relationship between the provision for or benefit from
income taxes and income or loss before income taxes because the countries
in which we operate have taxation regimes that vary not only with respect
to nominal rate, but also in terms of the availability of deductions,
credits and other benefits. Variations also arise because
income earned and taxed in any particular country or countries may
fluctuate from year to year. Deferred tax assets and
liabilities are recognized for the anticipated future tax effects of
temporary differences between the financial statement basis and the tax
basis of our assets and liabilities using the applicable enacted tax rates. A valuation allowance for
deferred tax assets is recorded when it is more likely than not that some
or all of the benefit from the deferred tax asset will not be
realized.
|
l)
|
Pension and retirement benefit
obligation: Administrative
personnel employed by Ocean Rig are covered by state-sponsored pension
funds. Both employees and the Company are required to contribute a portion
of the employees’ gross salary to the fund. Upon retirement, the
state-sponsored pension funds are responsible for paying the employees
retirement benefits and accordingly the Company has no such
obligation. Administrative personnel are entitled to an indemnity in
case of dismissal or retirement unless they resign or are dismissed with
cause. The Company’s liability for dismissal or retirement is
determined based on an actuarial
valuation.
|
Consolidated
Balance Sheets
|
December
31, 2007
|
June
30, 2008 (a )
|
||||||||||||||||||||||
As
originally reported under deferral method
|
As
adjusted under direct expense method
|
Effect
of change
|
As
computed under deferral method
|
As
reported under direct expense method
|
Effect
of change
|
|||||||||||||||||||
Increase
(decrease)
|
||||||||||||||||||||||||
Deferred
charges
|
2,492 | - | (2,492 | ) | 1,756 | - | (1,756 | ) | ||||||||||||||||
Total
non-current assets
|
431,370 | 428,878 | (2,492 | ) | 824,895 | 823,139 | (1,756 | ) | ||||||||||||||||
Total
assets
|
2,346,924 | 2,344,432 | (2,492 | ) | 4,982,052 | 4,980,296 | (1,756 | ) | ||||||||||||||||
Retained
earnings
|
569,316 | 566,824 | (2,492 | ) | 1,028,842 | 1,027,086 | (1,756 | ) | ||||||||||||||||
Total
stockholders equity
|
1,024,221 | 1,021,729 | (2,492 | ) | 1,950,098 | 1,948,342 | (1,756 | ) | ||||||||||||||||
Total
liabilities and stockholders’ equity
|
2,346,924 | 2,344,432 | (2,492 | ) | 4,982,052 | 4,980,296 | (1,756 | ) |
Consolidated
Statements of income
|
||||||||||||||||||||||||
June
30, 2007
|
June
30, 2008 (a)
|
|||||||||||||||||||||||
As
originally reported under deferral method
|
As
adjusted under direct expense method
|
Effect
of change
|
As
computed under deferral method
|
As
reported under direct expense method
|
Effect
of change
|
|||||||||||||||||||
Income
(expense)
|
||||||||||||||||||||||||
Vessels’
operating expenses
|
(29,017 | ) | (29,967 | ) | (950 | ) | (36,817 | ) | (37,650 | ) | (833 | ) | ||||||||||||
Amortization
of dry-docking costs
|
(1,572 | ) | - | 1,572 | (957 | ) | - | 957 | ||||||||||||||||
Gain
on sale of vessel
|
84,283 | 85,634 | 1,351 | 159,646 | 160,258 | 612 | ||||||||||||||||||
Operating
income
|
198,047 | 200,020 | 1,973 | 531,889 | 532,625 | 736 | ||||||||||||||||||
Income
before equity in loss of investee and minority interest
|
176,638 | 178,611 | 1,973 | 499,056 | 499,792 | 736 | ||||||||||||||||||
Net
income
|
176,638 | 178,611 | 1,973 | 475,350 | 476,086 | 736 | ||||||||||||||||||
Earnings
per common share, basic
|
$ | 4.98 | $ | 5.03 | $ | 0.05 | $ | 11.83 | $ | 11.85 | $ | 0.02 | ||||||||||||
Earnings
per common share, diluted
|
$ | 4.98 | $ | 5.03 | $ | 0.05 | $ | 11.83 | $ | 11.85 | $ | 0.02 |
Consolidated
Statements of Cash flows
|
||||||||||||||||||||||||
June
30, 2007
|
June
30 2008 (a)
|
|||||||||||||||||||||||
As
originally reported under deferral method
|
As
adjusted under direct expense method
|
Effect
of change
|
As
computed under deferral method
|
As
reported under direct expense method
|
Effect
of change
|
|||||||||||||||||||
Inflow
(outflow)
|
||||||||||||||||||||||||
Net
income
|
176,638 | 178,611 | 1,973 | 475,350 | 476,086 | 736 | ||||||||||||||||||
Amortization
of deferred dry-docking costs
|
1,572 | - | (1,572 | ) | 957 | - | (957 | ) | ||||||||||||||||
Payments
for dry-docking
|
(950 | ) | - | 950 | (833 | ) | - | 833 | ||||||||||||||||
Gain
on sale of vessel
|
84,283 | 85,634 | 1,351 | 159,646 | 160,258 | 612 |
a)
|
The
amounts disclosed under the deferral method for the six month period ended
and at June 30, 2008 are based on the estimated effect of not changing the
dry-docking accounting method to the direct expense method for this
period. Accordingly, these estimated period amounts have not been
previously reported, but are being disclosed in accordance with the
requirements of SFAS No. 154.
|
5.
|
Transactions
with Related Parties- continued:
|
5.
|
Transactions
with Related Parties- continued:
|
December
31, 2007
|
June
30, 2008
|
Lubricants
|
$ | 2,647 | $ | 2,764 | ||||
Victualling
stores
|
324 | 429 | ||||||
Bunkers
|
941 | 268 | ||||||
Total
|
$ | 3,912 | $ | 3,461 |
Vessel
Cost
|
Accumulated
Depreciation
|
Net
Book Value
|
||||||||||
Balance,
December 31, 2007
|
$ | 1,794,184 | (150,317 | ) | $ | 1,643,867 | ||||||
-Vessels
acquisitions
|
532,176 | - | 532,176 | |||||||||
-Vessels
disposals
|
(135,608 | ) | 20,080 | (115,528 | ) | |||||||
-Transfer
to held for sale
|
(30,291 | ) | 6,208 | (24,083 | ) | |||||||
-
Depreciation
|
- | (50,440 | ) | (50,440 | ) | |||||||
Balance,
June 30, 2008
|
$ | 2,160,461 | (174,469 | ) | $ | 1,985,992 |
Vessel
Held for Sale
|
24,083
|
||
Current
Liabilities held for sale
|
(266)
|
Net
Book Value
|
||||
Fair value of drilling rigs acquired | $ | 1,397,368 | ||
-Drilling
rigs improvement and other assets
|
1,911 | |||
-
Depreciation for the period
|
(7,355 | ) | ||
Balance,
June 30, 2008
|
$ | 1,391,924 |
Cash
consideration
|
$
|
1,376,574
|
|
Transaction
costs
|
10,345
|
||
Total purchase
price
|
$
|
1,386,919
|
Total
current assets
|
$ | 106,633 | ||
Drilling
rigs
|
1,397,368 | |||
Intangible
assets
|
14,203 | |||
Other
non current assets
|
423 | |||
Goodwill
|
693,980 | |||
TOTAL
ASSETS ACQUIRED
|
2,212,607 | |||
Total
current liabilities
|
412,441 | |||
Total
non current liabilities
|
390,041 | |||
Fair
value of below market acquired time charter
|
16,799 | |||
Minority
interest
|
6,407 | |||
TOTAL
LIABILITIES ASSUMED
|
$ | 825,688 | ||
TOTAL
PURCHASE PRICE
|
$ | 1,386,919 |
Amount
Acquired
|
Amount
Amortised as of June 30
|
||||||
2008
|
2009
|
2010
|
2011
|
2012
|
2013-18
|
Trade
Names
|
$ | 8,632 | 85 | 855 | 855 | 855 | 855 | $ | 5,127 | |||||||||||||||||||
Software
|
5,571 | 55 | 552 | 552 | 552 | 552 | 3,308 | |||||||||||||||||||||
$ | 14,203 | 140 | 1,407 | 1,407 | 1,407 | 1,407 | $ | 8,435 |
Financial
Positions as of :
|
December
31, 2007
|
|||
Current
assets
|
93,648 | |||
Noncurrent
assets
|
1,168,672 | |||
Current
liabilities
|
145,115 | |||
Noncurrent
liabilities
|
656,524 |
Results
of Operations for the period:
|
December
20, to December 31, 2007
|
January
1 to May 14, 2008
|
||||||
Revenues
|
8,227 | 98,229 | ||||||
Operating
Income/ (Loss)
|
(927 | ) | 20,534 | |||||
Net
Income (Loss)
|
(985 | ) | (19,873 | ) |
June
30,
|
||||||||
2007
|
2008
|
|||||||
Proforma:
|
||||||||
Revenues
|
306,281 | 633,991 | ||||||
Net
Operating Income
|
202,241 | 547,522 | ||||||
Net
Income
|
127,946 | 464,143 | ||||||
Earnings
per Shares, basic and diluted
|
3.61 | 11.55 | ||||||
December
31, 2007
|
June
30, 2008
|
|||||||
Dryships
-Term loans
|
1,220,605 | 2,113,915 | ||||||
Dryships
- Bridge loans
|
30,076 | - | ||||||
Ocean
Rig - Unsecured loans
|
- | 252,340 | ||||||
Ocean
Rig - Term loans
|
- | 526,000 | ||||||
Less
Related deferred financing costs
|
(6,903 | ) | (15,075 | ) | ||||
Total
|
1,243,778 | 2,877,180 | ||||||
Less:
Current portion
|
(194,999 | ) | (986,172 | ) | ||||
Long-term
portion
|
1,048,779 | 1,891,008 |
Year
ending
|
Amount
|
|||
June
30, 2009
|
992,137 | |||
June
30, 2010
|
697,183 | |||
June
30, 2011
|
270,658 | |||
June
30, 2012
|
199,408 | |||
June
30, 2013
|
118,908 | |||
June
30, 2014 and thereafter
|
613,961 | |||
2,892,255 | ||||
Less-Financing
fees
|
(15,075 | ) | ||
2,877,180 |
Drybulk
carriers
|
Drilling
Rigs
|
Total
|
||||||||||
Revenues
from external customers
|
$ | 490,984 | $ | 43,795 | $ | 534,779 | ||||||
Net
income/(Loss)
|
483,795 | (7,709 | ) | 476,086 | ||||||||
Goodwill
|
- | 693,980 | 693,980 | |||||||||
Total
Assets
|
$ | 2,524,889 | $ | 2,455,407 | $ | 4,980,296 |
For
the six month period
ended
June 30,
|
||||||||
2007
|
2008
|
|||||||
Net
income
|
$ | 178,611 | $ | 476,086 | ||||
Less:
Dividends declared during the period for non vested common
stock
|
- | (200 | ) | |||||
Net
income available to common stockholders
|
$ | 178,611 | $ | 475,886 | ||||
Weighted
average common shares outstanding, basic
|
35,490,097 | 40,173,941 | ||||||
Add:
Dilutive effect of non-vested common stock
|
- | 3,075 | ||||||
Weighted
average common shares outstanding, diluted
|
35,490,097 | 40,177,016 | ||||||
Earnings
per share, basic
|
$ | 5.03 | $ | 11.85 | ||||
Earnings
per share, diluted
|
$ | 5.03 | $ | 11.85 |
Obligations
|
Total
|
1
year
|
2-3
years
|
4-5
years
|
||||||||||||
Vessels
|
||||||||||||||||
Shipbuilding
contracts
|
53,200 | 19,950 | 33,250 | - | ||||||||||||
Newbuilding
purchases and vessels acqusitions
|
725,875 | 460,025 | 265,850 | - | ||||||||||||
Drillships
|
||||||||||||||||
Shipbuilding
contracts
|
1,411,266 | 260,387 | 508,888 | 641,991 | ||||||||||||
Total
|
2,190,341 | 740,362 | 807,988 | 641,991 |
a)
|
Declaration of
dividends: On
July 18, 2008, the Company declared dividends of $0.20 per share
paid on August 22, 2008 to the stockholders of record as of
August 8, 2008. In addition, on September 30, 2008 the Company
declared dividends of $0.20 per share payable on October 31, 2008 to the
stockholders of record as of October 15,
2008.
|
b)
|
Purchase of vessels
– delivery: On
July 28 and 30, 2008 the vessels Sorrento and Flecha respectively were
delivered to the Company.
|
c)
|
Purchase of vessel:
During August 2008, the Company concluded a contract to acquire
one Panamax vessel for total consideration of $61,000. The
vessel is expected to be delivered during the first quarter of
2009.
|
d)
|
Sale of vessels -
delivery: On
July 2 and August 14, 2008 the vessels Waikiki and Solana,
respectively were delivered to their new
owners.
|
e)
|
Sale of vessels:
Based on a memoranda of agreement dated July 17 and July 29,
2008, vessels Toro and La Jolla were sold for an aggregate
price of $63,400 and $66,000 respectively. The gain on sale of vessels is
approximately $68,810 and will be recognized upon
the delivery of the vessel to her new owners.The vessels are expected to
be delivered to their new owners during the first quarter of
2009.
|
f)
|
Purchase of shares: On July 14, 2008,
Primelead effected a compulsory transfer of all remaining shares in Ocean
Rig and as a consequence, the Company currently owns 100% of the shares in
Ocean Rig.
|
g)
|
Purchase of
companies: In
July 2008, the Company entered into two agreements to acquire all of the
issued and outstanding shares of two companies previously held by
companies beneficially owned by the Company’s Chief Executive Officer and
Interim Chief Financial Officer. The aggregate purchase price is $140,000,
which represents the fair value of the sole assets of the two
companies. In exchange for the aggregate purchase price, the Company
acquired two newbuilding Panamax vessels that are scheduled to be
delivered in the fourth quarter of 2008 and the first quarter of 2009,
respectively, net of advances of $60,000 in total to be made under the
shipbuilding contract by the Company.
|
17.
|
Subsequent
Events – continued:
|
§
|
In
July 2008, Kithira Owners Inc. and Skopelos Owners Inc. concluded two
facility agreements for an aggregate amount of $1.125 billion in order to
partly finance the construction cost of Drillship Hulls 1865 and
1866. The loans bear interest at LIBOR plus a margin and is
repayable in eighteen semi-annual
installments.
|
§
|
In
July 2008, Cretan Shareholders Inc. concluded a facility agreement for an
amount of $126.4 million in order to partly finance the acquisition of a
second hand vessel, to be re-named Flecha. The loan bears
interest at LIBOR plus a margin and is repayable in forty quarterly
installments.
|
§
|
In
July 29, 2008, Ocean Rig concluded an additional
$250.0 million credit facility that was used to refinance the unsecured
bond issued by Ocean Rig in the same amount. The bond became subject
to mandatory redemption due to the delisting of Ocean Rig from Oslo Stock
Exchange.
|
§
|
In
September 17, 2008, Ocean Rig concluded a facility agreement for an amount
of $1,040 million in order to finance existing loan indebtedness and
for general corporate purposes.
|
i)
|
Swap agreements: In
July, 2008 Kithira Owners Inc. and Skopelos Owners Inc. concluded four
interest rate swap agreements for a notional amount of $4,095 and for a
period between six to nine years, in order to hedge their
exposure to interest rate fluctuations for their floating rate
loans.
|
DryShips
Inc.
(Registrant)
|
||
Dated: October
1, 2008
|
By:
|
/s/George
Economou
George
Economou
Chief
Executive Officer
|