DRYSHIPS
INC.
|
||||
(Registrant)
|
||||
Dated: August
3, 2010
|
By
|
/s/
George Economou
|
||
George
Economou
|
||||
Chief
Executive Officer
|
||||
|
|
Six-months
ended
June
30
|
|
|
Change
|
|
||||||||||
|
|
2009
(As
restated)
|
|
|
2010
|
|
|
Amount
|
|
|
%
|
|
||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Voyage
revenues
|
|
$
|
204,468
|
|
|
$
|
229,169
|
|
|
$
|
24,701
|
|
|
|
12.1%
|
|
Revenues
from drilling contracts
|
|
|
196,680
|
|
|
|
189,228
|
|
|
|
(7,452)
|
|
(3.8)%
|
|||
|
|
|
401,148
|
|
|
|
418,397
|
|
|
|
17,249
|
|
|
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||
Voyage
expenses
|
|
|
15,705
|
|
|
|
13,537
|
|
|
(2,168)
|
|
|
(13.8)%
|
|||
Vessels'
operating expenses and drilling rigs operating expenses
|
|
|
101,917
|
|
|
|
95,094
|
|
|
(6,823)
|
|
|
(6.7)%
|
|||
Depreciation
and amortization
|
|
|
97,153
|
|
|
|
95,482
|
|
|
(1,671)
|
|
|
(1.7)%
|
|||
Gain
on sale of assets, net
|
|
|
(2,432)
|
|
|
(10,254)
|
|
|
7,822
|
|
|
321.6%
|
||||
Gain
on contract cancellation
|
|
|
(15,270)
|
|
|
-
|
|
|
15,270
|
|
|
100%
|
||||
Contract
termination fees and forfeiture of vessels deposits
|
|
|
226,686
|
|
|
-
|
|
|
(226,686)
|
|
|
(100)%
|
||||
General
and administrative expenses
|
|
|
43,420
|
|
|
44,011
|
|
|
591
|
|
|
1.4%
|
||||
Operating
income/ (loss)
|
|
|
(66,031)
|
|
|
180,527
|
|
|
246,558
|
|
|
373.4%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
OTHER
INCOME /(EXPENSES):
|
|
|
|
|
|
|
|
|
||||||||
Interest
and finance costs
|
|
|
(53,505)
|
|
|
(57,715)
|
|
|
(4,210)
|
|
|
(7.9)%
|
||||
Interest
income
|
|
|
4,851
|
|
|
9,934
|
|
|
5,083
|
|
|
104.8%
|
||||
Gain/(loss)
on interest rate swaps
|
|
|
60,294
|
|
|
(98,427)
|
|
|
(158,721)
|
|
|
(263.2)%
|
||||
Other,
net
|
|
|
(535)
|
|
|
(7,209)
|
|
|
(6,674)
|
|
|
(1,247.5)%
|
||||
Total
other expenses, net
|
|
|
11,105
|
|
|
(153,417)
|
|
|
(164,522)
|
|
|
(1,481.5)%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME/(LOSS)
BEFORE INCOME TAXES
|
|
|
(54,926)
|
|
|
27,110
|
|
|
82,036
|
|
|
149.4%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income
taxes
|
|
|
(6,354)
|
|
|
(11,938)
|
|
|
5,584
|
|
|
87.9%
|
||||
NET
INCOME/ (LOSS)
|
(61,280)
|
15,172
|
76,452
|
124.8%
|
||||||||||||
Less:
Net Income attributable to non controlling interest
|
|
|
(6,115)
|
|
|
-
|
|
|
6,115
|
|
|
100%
|
||||
NET
INCOME/ (LOSS) ATTRIBUTABLE TO DRYSHIPS INC.
|
|
$
|
(67,395)
|
|
$
|
15,172
|
|
$
|
82,567
|
|
|
122.5%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
months ending
|
|
Total
(in
thousands of dollars)
|
|
|
June
30, 2011
|
|
$
|
1,648,597
|
|
June
30, 2012
|
|
|
111,667
|
|
June
30, 2013
|
|
|
70,000
|
|
June
30,2014
|
|
|
417,500
|
|
June
30, 2015
|
|
|
700,000
|
|
|
|
|
2,947,764
|
|
Less:
Financing fees
|
|
|
(226,788)
|
|
|
|
$
|
2,720,976
|
|
|
|
Page
|
|
|
Consolidated
Balance Sheets as of December 31, 2009 and June 30, 2010
(unaudited)
|
F-2
|
|
|
Unaudited
Interim Condensed Consolidated Statements of Operations for the six-month
periods ended June 30, 2009 and 2010
|
F-3
|
|
|
Unaudited
Interim Condensed Consolidated Statements of Cash Flows for the six-month
periods ended June 30, 2009 and 2010
|
F-4
|
|
|
Notes
to Unaudited Interim Condensed Consolidated Financial
Statements
|
F-5
|
|
|
December
31,
2009
|
|
|
June
30,
2010
|
|
||
ASSETS
|
|
|
|
|
|
|||
CURRENT
ASSETS:
|
|
|
|
|
|
|
||
Cash
and cash equivalents
|
|
$
|
693,169
|
|
|
$
|
394,002
|
|
Restricted
cash (Note 8)
|
|
|
350,833
|
|
|
|
470,187
|
|
Trade
accounts receivable, net of allowance for doubtful receivables of $487 and
$487, respectively
|
|
|
66,681
|
|
|
|
51,251
|
|
Insurance
claims
|
|
|
1,853
|
|
|
|
2,331
|
|
Due
from related parties (Note 5)
|
|
|
27,594
|
|
|
|
27,410
|
|
Inventories
|
|
|
3,118
|
|
|
|
3,048
|
|
Financial
instruments (Note 9)
|
|
|
993
|
|
|
|
195
|
|
Other
current assets
|
|
|
36,409
|
|
|
|
41,152
|
|
Total
current assets
|
|
|
1,180,650
|
|
|
|
989,576
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS, NET:
|
|
|
|
|
|
|
|
|
Vessels
and rigs under construction and acquisitions (Note 6)
|
|
|
1,174,693
|
|
|
|
1,670,452
|
|
Vessels,
net (Note 7)
|
|
|
2,058,329
|
|
|
|
1,969,307
|
|
Drilling
rigs, net (Note 7)
|
|
|
1,329,641
|
|
|
|
1,280,300
|
|
Total
fixed assets, net
|
|
|
4,562,663
|
|
|
|
4,920,059
|
|
|
|
|
|
|
|
|
|
|
OTHER
NON-CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Intangible
assets, net
|
|
|
12,639
|
|
|
|
11,228
|
|
Above-market
acquired time charter
|
|
|
2,048
|
|
|
|
1,782
|
|
Other
non-current assets (Note 9)
|
|
|
41,088
|
|
|
|
60,400
|
|
Total
other non-current assets
|
|
|
55,775
|
|
|
|
73,410
|
|
Total
assets
|
|
$
|
5,799,088
|
|
|
$
|
5,983,045
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
|
|
Current
portion of long-term debt (Note 8)
|
|
$
|
1,698,692
|
|
|
$
|
1,625,576
|
|
Accounts
payable
|
|
|
19,727
|
|
|
|
8,153
|
|
Accrued
liabilities
|
|
|
80,236
|
|
|
|
45,818
|
|
Deferred
revenue
|
|
|
19,693
|
|
|
|
65,210
|
|
Financial
instruments (Note 9)
|
|
|
72,837
|
|
|
|
75,452
|
|
Other
current liabilities
|
|
|
4,838
|
|
|
|
2,096
|
|
Total
current liabilities
|
|
|
1,896,023
|
|
|
|
1,822,305
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Below-
market acquired time charter
|
|
|
7,632
|
|
|
|
4,271
|
|
Long-term
debt, net of current portion (Note 8)
|
|
|
985,992
|
|
|
|
1,095,400
|
|
Financial
instruments (Note 9)
|
|
|
104,763
|
|
|
|
177,010
|
|
Other
non-current liabilities
|
|
|
43
|
|
|
|
1,842
|
|
Total
non-current liabilities
|
|
|
1,098,430
|
|
|
|
1,278,523
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 12)
|
|
|
—
|
|
|
|
—
|
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
|
|
|
|
|
Preferred
stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2009
and June 30, 2010; none issued and outstanding (Note 10)
|
|
|
—
|
|
|
|
—
|
|
Series
A Convertible preferred stock, $0.01 par value; 100,000,000 shares
authorized and 52,238,806 issued and outstanding at December 31, 2009 and
June 30, 2010
|
|
|
522
|
|
|
|
522
|
|
Common
stock, $0.01 par value; 1,000,000,000 shares authorized at December 31,
2009 and June 30, 2010; 280,326,271 and 294,827,171 shares issued and
outstanding at December 31, 2009 and June 30, 2010,
respectively
|
|
|
2,803
|
|
|
|
2,948
|
|
Accumulated
other comprehensive loss
|
|
|
(28,137
|
)
|
|
|
(38,194)
|
|
Additional
paid-in capital
|
|
|
2,681,974
|
|
|
|
2,760,740
|
|
Retained
earnings
|
|
|
147,473
|
|
|
|
156,201
|
|
Total
stockholders' equity
|
|
|
2,804,635
|
|
|
|
2,882,217
|
|
Total
liabilities and stockholders' equity
|
|
$
|
5,799,088
|
|
|
$
|
5,983,045
|
|
|
|
|
|
|
|||
|
|
Six
months ended June 30,
|
||||||
|
|
2009
|
|
|
2010
|
|||
|
|
(As
restated-note 3)
|
|
|
|
|||
REVENUES:
|
|
|
|
|
|
|||
Revenues
(Note 14)
|
|
$
|
401,148
|
|
$
|
418,397
|
||
|
|
|
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
EXPENSES:
|
|
|
|
|
||||
Voyage
expenses
|
|
|
15,705
|
|
|
13,537
|
||
Vessel
and drilling rigs operating expenses
|
|
|
101,917
|
|
|
95,094
|
||
Depreciation
and amortization
|
|
|
97,153
|
|
|
95,482
|
||
Gain
on sale of assets, net (Note 7)
|
|
|
(2,432)
|
|
|
(10,254)
|
||
Gain
on contract cancellation
|
|
|
(15,270)
|
|
|
-
|
||
Contract
termination fees and forfeiture of vessels deposits
|
|
|
226,686
|
|
|
-
|
||
General
and administrative expenses
|
|
|
43,420
|
|
|
44,011
|
||
Operating
income/(loss)
|
|
|
(66,031)
|
|
|
180,527
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
OTHER
INCOME / (EXPENSES):
|
|
|
|
|
||||
Interest
and finance costs (Note 13)
|
|
|
(53,505)
|
|
|
(57,715)
|
||
Interest
income
|
|
|
4,851
|
|
|
9,934
|
||
Gain/(loss)
on interest rate swaps (Note 9)
|
|
|
60,294
|
|
|
(98,427)
|
||
Other,
net (Note 9 )
|
|
|
(535)
|
|
|
(7,209)
|
||
Total
expenses, net
|
|
|
11,105
|
|
|
(153,417)
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
INCOME
/(LOSS) BEFORE INCOME TAXES
|
|
|
(54,926)
|
|
|
27,110
|
||
Income
taxes
|
|
|
(6,354)
|
|
|
(11,938)
|
||
|
|
|
|
|
||||
NET
INCOME / (LOSS)
|
(61,280)
|
15,172
|
||||||
|
|
|
|
|
||||
Less:
Net income attributable to non controlling interest
|
(6,115)
|
-
|
||||||
NET
INCOME/(LOSS) ATTRIBUTABLE TO DRYSHIPS INC.
|
|
$
|
(67,395)
|
|
$
|
15,172
|
||
|
|
|
|
|
|
|
|
|
NET INCOME/(LOSS) ATTRIBUTABLE
TO COMMON STOCKHOLDERS (Note 15)
|
|
$
|
(67,395)
|
|
|
$
|
8,622
|
|
EARNINGS/(LOSS)
PER COMMON SHARE ATTRIBUTABLE TO DRYSHIPS INC. COMMON STOCKHOLDERS, BASIC
AND DILUTED (Note 15)
|
|
$
|
(0.41
|
)
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES, BASIC
AND
DILUTED (Note 15)
|
$
|
163,011,168
|
$
|
255,012,737
|
||||
|
|
Six
months ended June 30,
|
|
|||||
|
|
2009
|
|
|
2010
|
|
||
Net
Cash Provided by Operating Activities
|
|
$
|
96,231
|
|
|
$
|
175,644
|
|
|
|
|
|
|
|
|||
Cash
Flows from Investing Activities:
|
|
|
|
|
|
|||
Insurance
proceeds
|
|
|
452
|
|
|
-
|
|
|
Acquisition
of drillships
|
248
|
-
|
||||||
Vessels
acquisitions and improvements
|
(24,241)
|
-
|
||||||
Proceeds
from sale at subsidiary
|
100
|
-
|
||||||
Advances
for vessel acquisitions / rig under construction
|
|
|
(15,636)
|
|
|
(485,447)
|
||
Drilling
rigs, equipment and other improvements
|
|
|
(5,423)
|
|
|
(3,671)
|
||
Proceeds
from sale of vessels, net of costs
|
|
|
45,433
|
|
|
42,190
|
|
|
Increase
in restricted cash
|
|
|
(9,592)
|
|
|
(119,354)
|
||
Net
Cash Used in Investing Activities
|
|
|
(8,659)
|
|
|
(566,282)
|
||
|
|
|
|
|
|
|||
Cash
Flows from Financing Activities :
|
|
|
|
|
|
|||
Proceeds
from issuance of convertible notes
|
-
|
237,552
|
||||||
Proceeds
from long-term credit facility
|
|
|
855
|
|
|
4,075
|
|
|
Payments
of short-term credit facility
|
(150,000)
|
-
|
||||||
Proceeds
from short-term credit facility
|
150,000
|
-
|
||||||
Payments
of long-term credit facility
|
|
|
(864,481)
|
|
|
(149,152)
|
||
Proceeds
of share-lending arrangement
|
-
|
100
|
||||||
Net
proceeds from common stock issuance
|
|
|
950,680
|
|
|
-
|
|
|
Payment
of financing costs
|
|
|
(1,836)
|
|
|
(1,104)
|
||
|
|
|
|
|
|
|||
Net
Cash provided by Financing Activities
|
|
|
85,218
|
|
|
91,471
|
||
Net
increase/(decrease) in cash and cash equivalents
|
|
|
172,790
|
|
|
(299,167)
|
||
|
|
|
|
|
|
|||
Cash
and cash equivalents at beginning of period
|
|
|
303,114
|
|
|
693,169
|
|
|
Cash
and cash equivalents at end of period
|
|
$
|
475,904
|
|
$
|
394,002
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Income Statement
|
|
June
30, 2009
|
|
|||||
|
|
As
previously reported
|
|
|
As
restated
|
|
||
|
|
|
|
|
|
|
||
Revenues
from drilling contracts
|
|
$
|
202,632
|
$
|
196,680
|
|||
Rig
operating expenses
|
|
|
69,326
|
65,839
|
||||
Loss
on contract termination deposits and forfeiture of vessel
deposits
|
|
|
230,802
|
226,686
|
||||
Operating
loss
|
|
|
67,682
|
66,031
|
||||
Net
loss
|
|
|
69,046
|
67,395
|
||||
Loss
per common share, basic and diluted
|
|
$
|
0.42
|
$
|
0.41
|
|||
|
|
|
|
|
|
|
|
|
|
December
31,
2009
|
June
30,
2010
|
||||||
Balance
Sheet
|
|
|
||||||
|
|
|
||||||
Due
from related party – Cardiff Marine Inc
|
$ | 27,594 | $ | 27,410 |
|
|
Six-
month period
ended
June 30,
|
|
|||||
|
|
2009
(As
Restated)
|
|
|
2010
|
|
||
Statement
of Operations
|
|
|
|
|
|
|
||
Gain
on sale of vessels
|
|
$
|
308
|
|
|
$
|
435
|
|
Contract
termination fee and forfeiture of vessel deposits- Various
Affiliates
|
|
|
25,350
|
|
|
|
-
|
|
General
and administrative expenses
|
|
|
|
|
|
|
||
-Management
fees - Cardiff Marine Inc
|
|
|
8,366
|
|
|
|
8,492
|
|
-
Consultancy fees – Fabiana Services S.A
|
|
|
1,336
|
|
|
|
1,797
|
|
-
SOX fees – Cardiff Marine Inc
|
|
|
1,471
|
|
|
|
1,490
|
|
-
Rent
|
|
|
6
|
|
|
|
6
|
|
-
Amortization of CEO stock based compensation
|
|
$
|
18,747
|
|
|
$
|
17,597
|
Acquisition
of drillships-(continued):
|
|
|
|
|
|
Fair
value of assets and liabilities acquired
|
|
|
|
|
Cash
equivalents
|
|
$
|
248
|
|
Advances
for rigs under construction
|
|
|
625,445
|
|
Short-term
borrowings
|
|
|
(31,102
|
)
|
Other
current liabilities
|
|
|
(7,656
|
)
|
Long-term
debt
|
|
|
(228,810
|
)
|
Total
fair value of net assets
|
|
$
|
358,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
December
31, 2009
|
|
|
June
30, 2010
|
|
||||||||||||||||||||
Vessel
name
|
Expected
delivery
|
|
Contract
amount
|
|
|
Contract
payments
|
|
|
Capitalized
expenses
and
fair
value
adjustments
|
|
|
Total
|
|
|
Contract
payments
|
|
|
Capitalized
expenses
and
fair
value
adjustments
|
|
|
Total
|
|
||||||||
H1637A |
November
2011
|
|
$
|
33,050
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,305
|
|
|
|
26
|
|
$
|
3,331
|
|
||
H1638A |
January
2012
|
|
|
33,050
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,305
|
|
|
|
26
|
|
|
3,331
|
|
||
Gemini
S tbn Amalfi
|
August
2010
|
43,000
|
-
|
-
|
-
|
4,300
|
17
|
4,317
|
||||||||||||||||||||||
H1865 |
July
2011
|
|
|
701,555
|
|
|
|
205,939
|
|
|
|
14,068
|
|
|
|
220,007
|
|
|
|
309,980
|
|
|
|
35,828
|
|
|
345,808
|
|
||
H1866 |
September
2011
|
|
|
701,555
|
|
|
|
205,939
|
|
|
|
12,913
|
|
|
|
218,852
|
|
|
|
309,980
|
|
|
|
34,201
|
|
|
344,181
|
|
||
H1837 |
December
2010
|
|
|
689,795
|
|
|
|
254,347
|
|
|
|
114,250
|
|
|
|
368,597
|
|
|
|
359,669
|
|
|
|
129,439
|
|
|
489,108
|
|
||
H1838 |
March
2011
|
|
|
689,545
|
|
|
|
254,347
|
|
|
|
112,890
|
|
|
|
367,237
|
|
|
|
359,669
|
|
|
|
120,707
|
|
|
480,376
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
$
|
2,891,550
|
|
|
|
920,572
|
|
|
|
254,121
|
|
|
|
1,174,693
|
|
|
|
1,350,208
|
|
|
|
320,244
|
|
$
|
1,670,452
|
|
7.
|
Vessels
and Drilling Rigs:
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Cost
|
|
|
Accumulated
Depreciation
|
|
|
Net
Book
Value
|
|
|||
Balance,
December 31, 2009
|
|
$
|
2,372,390
|
(314,061)
|
|
$
|
2,058,329
|
|
||||
Vessel
disposals
|
|
|
(32,513)
|
1,007
|
|
|
(31,506
|
)
|
||||
Depreciation
|
|
|
-
|
(57,516)
|
|
|
(57,516
|
)
|
||||
Balance,
June 30, 2010
|
|
$
|
2,339,877
|
(370,570)
|
|
$
|
1,969,307
|
|
|
|
Cost
|
|
|
Accumulated
Depreciation
|
|
|
Net
Book
Value
|
|
|||
Balance,
December 31, 2009
|
|
$
|
1,453,391
|
|
|
|
(123,750)
|
|
$
|
1,329,641
|
||
Additions
|
|
|
3,671
|
|
|
|
-
|
|
|
3,671
|
||
Disposals
|
(20,870)
|
|
5,104
|
(15,766)
|
||||||||
Depreciation
|
|
|
- |
|
|
(37,246)
|
|
|
(37,246)
|
|||
Balance
June 30, 2010
|
|
$
|
1,436,192
|
|
|
|
(155,892)
|
|
$
|
1,280,300
|
|
|
December
31, 2009
|
|
|
June
30, 2010
|
|
||
Convertible Senior Notes
|
|
$
|
460,000
|
|
|
$
|
700,000
|
|
Loan Facilities – Drybulk Segment
|
|
|
1,168,016
|
|
|
|
1,079,983
|
|
Loan Facilities – Drilling Rig Segment
|
|
|
1,224,824
|
|
|
|
1,167,781
|
|
Less: Deferred financing costs and unamortized discount
|
|
|
(168,156
|
)
|
|
|
(226,788)
|
|
Total debt
|
|
|
2,684,684
|
|
|
|
2,720,976
|
|
Less: Current portion
|
|
|
(1,698,692
|
)
|
|
|
(1,625,576)
|
|
Long-term portion
|
|
$
|
985,992
|
|
|
$
|
1,095,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30, 2011
|
|
$
|
1,648,597
|
|
June
30, 2012
|
|
|
111,667
|
|
June
30, 2013
|
|
|
70,000
|
|
June
30, 2014
|
|
|
417,500
|
|
June
30, 2015
|
|
|
700,000
|
|
Total
principal payments
|
|
|
2,947,764
|
|
Less:
Financing fees
|
|
|
(226,788)
|
|
Total
debt
|
|
$
|
2,720,976
|
|
|
|
December
31, 2009
|
|
|
June
30, 2010
|
|
||||||||||||||||||||||||||
|
|
Interest
Rate
Swaps
|
|
|
Forward
Freight
Agreements
|
|
|
Foreign
Currency
Forward
Contracts
|
|
|
Total
|
|
|
Interest
Rate
Swaps
|
|
|
Forward
Freight
Agreements
|
|
|
Foreign
Currency
Forward
Contracts
|
|
|
Total
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Current
Assets
|
|
$
|
-
|
|
|
|
559
|
|
|
|
434
|
|
|
|
993
|
|
|
|
-
|
|
195
|
|
|
|
-
|
|
|
$
|
195
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Current
liabilities
|
|
|
(65,129
|
)
|
|
|
(7,708
|
)
|
|
|
-
|
|
|
|
(72,837
|
)
|
|
|
(68,541)
|
|
(3,593)
|
|
|
(3,318)
|
|
|
(75,452)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non
current liabilities
|
|
|
(103,765
|
)
|
|
|
(998
|
)
|
|
|
-
|
|
|
|
(104,763
|
)
|
|
|
(176,525)
|
|
(485)
|
|
|
-
|
|
|
(177,010)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
$
|
(168,894
|
)
|
|
|
(8,147
|
)
|
|
|
434
|
|
|
|
(176,607
|
)
|
|
|
(245,066)
|
|
(3,883)
|
|
|
(3,318)
|
|
$
|
(252,267)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Asset
Derivatives
|
|
|
|
Liability
Derivatives
|
|
||||||||||
Derivatives
designated as
hedging instruments
|
Balance
Sheet Location
|
|
December
31,
2009
Fair
value
|
|
|
June
30,
2010
Fair
value
|
|
Balance
Sheet Location
|
|
December
31,
2009
Fair
value
|
|
|
June
30,
2010
Fair
value
|
|
||||
Interest
rate swaps
|
Financial
instruments
|
|
$
|
-
|
|
|
$
|
-
|
|
Financial
instruments non current liabilities
|
|
$
|
31,028
|
|
|
$
|
40,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total
derivatives designated as hedging instruments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
31,028
|
|
|
|
40,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Derivatives
not designated
as hedging instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest
rate swaps
|
Financial
instruments-current assets
|
|
|
-
|
|
|
|
-
|
|
Financial
instruments-current liabilities
|
|
|
65,129
|
|
|
|
68,541
|
|
Interest
rate swaps
|
Financial
instruments-non current assets
|
|
|
-
|
|
|
|
-
|
|
Financial
instruments-non current liabilities
|
|
|
72,737
|
|
|
|
135,790
|
|
Forward
freight agreements
|
Financial
instruments-current assets
|
|
|
559
|
|
|
|
195
|
|
Financial
instruments current liabilities
|
|
|
7,708
|
|
|
|
3,593
|
|
Forward
freight agreements
|
Financial
instruments-non current assets
|
|
|
-
|
|
|
|
-
|
|
Financial
instruments non current liabilities
|
|
|
998
|
|
|
|
485
|
|
Foreign
currency forward contracts
|
Financial
instruments-current assets
|
|
|
434
|
|
|
|
-
|
|
Financial
instruments current liabilities
|
|
|
-
|
|
|
|
3,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total
derivatives not designated as hedging instruments
|
|
|
|
993
|
|
|
|
195
|
|
|
|
|
146,572
|
|
|
|
211,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total
derivatives
|
|
|
$
|
993
|
|
|
$
|
195
|
|
Total
derivatives
|
|
$
|
177,600
|
|
|
$
|
252,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.
|
Financial
Instruments and Fair Value
Measurements-(continued):
|
|
|
|
|
|
|
|
||
|
|
Amount
of Gain/(Loss) Recognized in OCI on Derivative
(Effective
Portion)
|
|
|||||
Derivatives
designated for cash flow hedging relationships
|
|
Six-month
period Ended
June
30, 2009
|
|
|
Six-month
period Ended
June
30, 2010
|
|
||
Int Interest
rate swaps
|
|
$
|
18,607
|
|
|
$
|
(9,707)
|
|
Total
|
|
$
|
18,607
|
|
|
$
|
(9,707)
|
|
|
|
Amount
of Gain/(Loss)
|
|
|||||
Derivatives
not designated as hedging instruments
|
Location
of Gain or (Loss)
Recognized
|
|
Six-month
period
Ended
June
30, 2009
|
|
|
Six-month
period
Ended
June
30, 2010
|
|
||
Interest
rate swaps
|
Gain/(loss)
on interest rate swaps
|
|
$
|
60,294
|
|
|
$
|
(98,427)
|
|
Forward
freight agreements
|
Other,
net
|
|
|
(2,615)
|
|
|
|
(3,962)
|
|
Foreign
currency forward contracts
|
Other,
net
|
|
|
2,135
|
|
|
|
(3,318)
|
|
Total
|
|
|
$
|
59,814
|
|
|
$
|
(105,707
|
)
|
9.
|
Financial
Instruments and Fair Value
Measurements-(continued):
|
|
|
June
30,
2010
|
|
|
Quoted
Prices
in
Active
Markets
for
Identical
Assets
(Level
1)
|
|
|
Significant
Other
Observable
Inputs
(Level
2)
|
|
|
Unobservable
Inputs
(Level
3)
|
|
||||
Recurring
measurements:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest
rate swaps-liability position
|
|
$
|
(245,066)
|
|
|
-
|
|
|
|
(245,066)
|
$
|
-
|
||||
Forward
freight agreements – asset position
|
|
|
195
|
|
|
195
|
|
|
|
-
|
|
|||||
Forward
freight agreements – liability
position
|
(4,078)
|
|
|
(4,078)
|
-
|
|
-
|
|||||||||
Foreign
currency forward contracts – liability position
|
|
|
(3,318)
|
|
|
-
|
(3,318)
|
|
-
|
|||||||
Series
A preferred stock dividend
|
|
|
(6,444)
|
|
|
-
|
(6,444)
|
|
-
|
|||||||
Total
|
|
$
|
(258,711)
|
|
|
(3,883)
|
(254,828)
|
$
|
-
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Number
of
non
vested shares
|
|
|
Weighted
average grant
date
fair value per
non
vested shares
|
|
||
Balance
as at January 1, 2010
|
|
|
202,971
|
|
|
$
|
48.69
|
|
Granted
|
|
|
4,503,000
|
|
|
|
6.05
|
|
Vested
|
|
|
(1,169,273
|
)
|
|
|
13.36
|
|
|
|
|
|
|
|
|
|
|
Balance
June 30, 2010
|
|
|
3,536,698
|
|
|
$
|
6.08
|
|
12.2
|
Purchase
obligations:
|
|
|
|
|
|
|
|
|
|
|
|||
Obligations:
|
|
Total
|
|
|
1st year
|
|
|
2nd year
|
|
|||
Vessel
Shipbuilding contracts
|
|
$
|
59,490
|
|
|
|
16,525
|
|
|
$
|
42,965
|
|
Vessel
Acquisitions
|
38,700
|
38,700
|
-
|
|||||||||
Drillship
Shipbuilding contracts
|
|
|
1,539,619
|
|
|
|
815,933
|
|
|
|
723,686
|
|
Total
obligations
|
|
$
|
1,637,809
|
|
|
$
|
871,158
|
|
|
$
|
766,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Six
month period
June
30,
|
|
|||||
|
|
2009
|
|
|
2010
|
|
||
Interest
on long-term debt
|
|
$
|
39,848
|
|
$
|
37,365
|
||
Long-term
debt commitment fees
|
|
|
3,066
|
|
|
2,870
|
||
Bank
charges
|
|
|
855
|
|
|
759
|
||
Amortization
and write-off of financing fees
|
|
|
9,730
|
|
|
4,208
|
||
Amortization
of convertible Notes discount
|
|
|
-
|
|
|
10,831
|
||
Amortization
of share lending agreement- Notes issuance costs
|
|
|
-
|
|
|
930
|
||
Other
|
|
|
6
|
|
|
752
|
||
Total
|
|
$
|
53,505
|
|
$
|
57,715
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
Drybulk
Segment
|
|
|
Drilling
Rigs Segment
|
|
|
Total
|
|
|||||||||||||||
|
|
As
of and for the six-months period
ended
June 30,
|
|
|
As
of and for the six-months period
ended
June 30,
|
|
|
As
of and for the six-months period
ended
June 30,
|
|
|||||||||||||||
|
|
2009
(as
restated)
|
|
|
2010
|
|
|
2009
|
|
|
2010
|
|
|
2009
(as
restated)
|
|
|
2010
|
|
||||||
Revenues
from external customers (comparable period restated)
|
|
$
|
204,468
|
|
|
|
229,169
|
|
196,680
|
|
|
|
189,228
|
|
|
|
401,148
|
|
|
$
|
418,397
|
|
||
Income
tax expenses
|
|
|
-
|
|
|
|
-
|
|
6,354
|
|
|
|
11,938
|
|
|
|
6,354
|
|
|
|
11,938
|
|
||
Net
income/(loss) (comparable period restated)
|
|
$
|
(133,049)
|
|
(6,262)
|
|
65,654
|
|
|
21,434
|
|
|
|
(67,395)
|
|
$
|
15,172
|
|
|
|
Six-months
period ended June 30,
|
|
|||||||||||||||||||||
|
|
2009 (As
Restated)
|
|
|
2010
|
|
||||||||||||||||||
|
|
Income
(numerator)
|
|
|
Weighted-
average
number
of
outstanding
shares
(denominator)
|
|
|
Amount
per
share
|
|
|
Income
(numerator)
|
|
|
Weighted-
average
number
of
outstanding
shares
(denominator)
|
|
|
Amount
per
share
|
|
||||||
Net
income/(loss) attributable to DryShips Inc.
|
|
$
|
(67,395)
|
|
-
|
|
-
|
15,172
|
-
|
|
|
$
|
-
|
|||||||||||
Less:
Series A Convertible
Preferred
stock dividends
|
|
|
-
|
|
-
|
|
-
|
(6,444)
|
-
|
|
|
|
-
|
|||||||||||
Less:
Non- vested common stock dividends declared and undistributed
earnings
|
-
|
-
|
-
|
(106)
|
-
|
-
|
||||||||||||||||||
Basic
and diluted EPS
|
|
|
|
|
|
|
|
|||||||||||||||||
Income/(loss)
available to common stockholders
|
|
$
|
(67,395)
|
|
163,011,168
|
|
(0.41)
|
8,622
|
255,012,737
|
|
|
$
|
0.03
|