DryShips upgraded to Outperform from Neutral at Credit Suisse. (Source: FlyOnTheWall)
Petrobas gives Letter of Award to DRYS subsidiary Ocean Rig ASA for 3 years of exploration drilling in the Black Sea
DRYS sells its Paragon, La Jolla, and Toro ships for $61 million, $66 million, and $36 million respectively.
DRYS reworks an outstanding loan of $650 million with creditor Nordea Bank Finland.
Ocean shipping has been hit hard with soft global consumer demand for discretionary items, a weak housing market, and credit market concerns. Freight rates will likely stay low for several years until trade recovers.Weak demand for U.S. goods due to a strengthening dollar also have hurt the ocean shipping industry.According to a February 2009 forecast by PIERS, U.S. containerized imports and exports in the trans-Pacific trade will decline 4.1% in 2009, following a 3.9% drop in 2008.Imports from Asia fell 8% in 2008, and nearly 11% in the fourth quarter.Carriers estimate that housing-related products account for at least 25% of eastbound cargo volume from Asia.Spot rates from Hong Kong to Los Angeles plunged 35% to $1,350 in mid-February from early September 2008.
DRYS announces that it will sell its 1995-built M/V Toro, a Panamax ship, to Samsun Logix at a 43% discount.
DryShips reached an agreement with one of its largest lenders - Piraeus Bank - for a covenant waiver and deferral of loan instalments.
DRYS announces it is in violation of certain loan covenants in its loan agreements and that it will sell up to $500 million new common shares. DRYS is in negotiations for the waiver and amendment of certain financial and other covenants contained in these loan agreements. If DRYS is unsuccessful in these negotiations, the banks can foreclose on these vessels.
in after hours opinhimer down graded
People rush into the dry bulks as the BDI shows a stop in bleeding and beins is slow move back to reality. The masses were probably a little premature as it did record numbers in volume, but volume never lies, drys stands to benefit BIG with the spot market turn around.
China began drawing down its iron ore stockpiles to reduce realized prices on the raw material. This is only temporary as the stockpiles are not large, but the effect on dry bulk rates was large. The BDI shed 20% during this temporary crack in demand.
The company reported revenues and net income nearly doubling as spot rates increased and a significant capital gain was recorded on the sale of a ship. The earnings of $4.13 beat the consensus estimate of $4.05.
The Baltic Dry Index rates exploded upward past the 2007 highs on soaring spot rates.
Since DRYS is revenues are so closely tied to the Baltic Dry Index, the recent recovery in rates has pushed the stock price up accordingly.
Dryships announced that they had acquired 30.7% of Ocean Rig ASA and were attempting to buy the company.
China steel makers hold off on chartering ships. Some cite as a possible slow down in the demand for steel while others speculate china is trying to downplay the industry boom in an attempt to control rising shipping costs.