DryShips Sells 17 Vessels for Huge Loss

File photo (c) Shutterstock/Lukasz Z
File photo (c) Shutterstock/Lukasz Z

 

Athens-based dry bulk shipping company DryShips, Inc. announced Monday agreements to sell 17 vessels and says its remaining fleet is now held for sale, which will lead to impairment losses that could reach close to $800 million.

The firm sales agreements were entered into with private entities controlled by DryShips’ Chairman and CEO George Economou.

The 17 vessels sold comprise of 13 capesize and 4 panamax bulk carriers. DryShips’ says the ships and their employment agreements are being sold for an aggregate price of $377 million, including $236.7 million of debt. As a result of the sale, DryShips says it expects to recognize an impairment charge of $373 million in the Q3 2015. The transactions are expected to close in Q4 2015.

In addition to the vessels, DryShips’ Board of Directors will classify the company’s remaining fleet, consisting of 20 panamax and 2 supramax bulk carriers, as held for sale. This is expected to lead to an additional impairment charge of approximately $422 million in Q3 2015, making for a total impairment charge of $795 million.

The NASDAQ-listed company’s stock (DRYS) fell more than 39% to $0.25 per share as of 3 p.m. EDT.

DryShips still has a majority interest in Ocean Rig UDW Inc., an offshore deepwater drilling services company that owns and operates 13 ultra deepwater drilling units, comprised of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, including 3 still under construction.