DryShips Inc. Further Reduces CAPEX

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Thursday, 04 June 2009

DryShips Inc., a global provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services, announced yesterday that: The Company has entered into agreements to cancel the previously announced acquisition of a 180,000 dwt Capesize newbuilding, Hull 2089, currently under construction in South Korea for a contract price of $114 million. Under the terms of the various agreements, DryShips will pay a total cancellation penalty of $42.8 million, including the initial deposit of 20%. This cancellation will further reduce DryShips' 2009 capital expenditures by $71.2 million.
George Economou, Chairman and CEO commented:
"This cancellation reaffirms the Company's strategy to cut down our CAPEX requirements. This cancellation is consistent with our continued position to evaluate all of our funding options which includes potential further capex reductions, fleet additions, equity issuances and debt placements."
Source: DryShips Inc.