UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 6-K


REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934


For the month of February 2017


Commission File Number 001-33922


DRYSHIPS INC.


109 Kifissias Avenue and Sina Street

151 24, Marousi

Athens, Greece


(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.


Form 20-F [X]       Form 40-F [  ]


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [  ].


Note : Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.


Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [  ].


Note : Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.












INFORMATION CONTAINED IN THIS FORM 6-K REPORT


Attached as Exhibit 99.1 to this Report on Form 6-K is a press release of DryShips Inc. dated February 7, 2017: Dryships Inc. Reports Financial And Operating Results For The Fourth Quarter 2016








SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

  

DRYSHIPS INC.                         

  

(Registrant)

  

  

Dated:  February 8, 2017

By:  /s/George Economou    

  

  

George Economou

Chief Executive Officer










Exhibit 99.1

[F020817DRYS6K001.JPG]



DRYSHIPS INC. REPORTS FINANCIAL AND OPERATING

RESULTS FOR THE FOURTH QUARTER 2016

February 7, 2017, Athens, Greece. DryShips Inc. (NASDAQ:DRYS), or DryShips or the Company, a diversified owner of ocean going cargo vessels, today announced its unaudited financial and operating results for the quarter ended December 31, 2016.



Updated Key Information as of February 7, 2017:


-

Cash and cash equivalents about $243.0 million, (or $6.70 per share)


-

Book value of Vessels, net about $95.3 million


-

3 rd Party Loans about $16.5 million


-

Sifnos Loan Facility balance about $142.9 million


-

Sifnos Loan available liquidity about $57.1 million


-

Number of Shares Outstanding  36,253,866




George Economou, Chairman and Chief Executive Officer of the Company, commented:


“We are pleased to have put 2016 behind us. Having now restored our balance sheet and successfully raised over $300 million in new equity in the last 12 months, DryShips is in a unique position to opportunistically acquire vessels at prices close to historic lows.”

Fleet List

The table below describes our fleet profile as of February 7, 2017:


 

Year

 

 

Gross rate

Redelivery

 

 

Built

DWT

Type

Per day

Earliest

Latest

Drybulk fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Panamax:

 

 

 

 

 

 

Raraka

2012

76,037

Panamax

Spot

N/A

N/A

Rapallo

2009

75,123

Panamax

Spot

N/A

N/A

Catalina

2005

74,432

Panamax

Spot

N/A

N/A

Majorca

2005

74,477

Panamax

Spot

N/A

N/A

Ligari

2004

75,583

Panamax

Spot

N/A

N/A

Mendocino

2002

76,623

Panamax

Spot

N/A

N/A

Bargara

2002

74,832

Panamax

Spot

N/A

N/A

Ecola

2001

73,931

Panamax

Spot

N/A

N/A

Capitola  

2001

74,816

Panamax

Spot

N/A

N/A

Levanto

2001

73,925

Panamax

Spot

N/A

N/A

Maganari

2001

75,941

Panamax

Spot

N/A

N/A

Marbella

2000

72,561

Panamax

Spot

N/A

N/A

Redondo

2000

74,716

Panamax

Spot

N/A

N/A

 

 

 

 

 

 

 

Offshore Supply fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform Supply Vessels:

 

 

 

 

 

 

Crescendo

2012

1,457

PSV

Laid up

N/A

N/A

Vega Corona

2012

1,430

PSV

Idle

N/A

N/A

Oil Spill Recovery Vessels:

 

 

 

 

 

 

Indigo

2013

1,393

OSRV

Laid up

N/A

N/A

Vega Jaanca

2012

1,393

OSRV

T/C

Jul.-17

Jul.-21

Vega Emtoli

2012

1,363

OSRV

T/C

May-17

May-21

Jubilee

2012

1,317

OSRV

Laid up

N/A

N/A

 

 

 

 

 

 

 

Gas Carrier fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

Newbuildings:

 

CBM

 

 

 

 

Very Large Gas Carrier (1)

2017

78,700

VLGC

$30,000

Jun.-22

Jun.-25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1) Expected to be delivered during June 2017.




Drybulk Carrier Segment Summary Operating Data(unaudited)

(Dollars in thousands, except average daily results)



Drybulk

Three Months Ended December 31,

 

Year Ended December 31,

 

2015

 

2016

 

2015

 

2016

Average number of vessels (1)

26.5

 

15.2

 

35.8

 

19.4

Total voyage days for vessels (2)

2,341

 

1,221

 

12,562

 

6,404

Total calendar days for vessels (3)

2,434

 

1,394

 

13,060

 

7,116

Fleet utilization (4)

96.2%

 

87.6%

 

96.2%

 

90.0%

Time charter equivalent (5)

$5,097

 

$5,444

 

$9,171

 

$3,658

Vessel operating expenses (daily) (6)

$6,528

 

$4,772

 

$6,715

 

$4,826


(1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

(2) Total voyage days for fleet are the total days the vessels were in our possession for the relevant period net of dry-docking and laid-up days.

(3) Calendar days are the total number of days the vessels were in our possession for the relevant period including dry-docking days and laid-up days.

(4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

(5) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage and are paid by the charterer under a time charter contract, as well as commissions. TCE revenues, a non-U.S. GAAP measure, provides additional meaningful information in conjunction with revenues from our vessels, the most directly comparable U.S. GAAP measure, because it assists our management in making decisions regarding the deployment and use of its vessels and in evaluating their financial performance. TCE is also a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Please see below for a reconciliation of TCE rates to voyage revenues.

(6) Daily vessel operating expenses, which includes crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs is calculated by dividing vessel operating expenses by fleet calendar days net of laid-up days for the relevant time period.

(7) Does not include accrual for the provision of the purchase options and write off in overdue receivables under certain time charter agreements.


(In thousands of U.S. dollars, except for TCE rate, which is expressed in Dollars, and voyage days)


Drybulk

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2015

 

2016

 

2015

 

2016

Voyage revenues (7)

$

15,660

$

8,745

$

138,828

$

30,777

Voyage expenses

 

(3,729)

 

(2,098)

 

(23,619)

 

(7,349)

Time charter equivalent revenues

$

11,931

$

6,647

$

115,209

$

23,428

Total voyage days for fleet   

 

2,341

 

1,221

 

12,562

 

6,404

Time charter equivalent TCE

$

5,097

$

5,444

$

9,171

$

3,658




DryShips Inc.


Financial Statements

Unaudited Condensed Consolidated Statements of Operations

(Expressed in Thousands of U.S. Dollars

except for share and per share data)

 


Three Months Ended December 31,

 

Year Ended December 31,

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

Voyage revenues

$

23,766

$

12,844

$

244,020

$

51,934

Revenues from drilling contracts

 

-

 

-

 

725,805

 

-

 

 

23,766

 

12,844

 

969,825

 

51,934

 

 

 

 

 

 

 

 

 

EXPENSES:

 

 

 

 

 

 

 

 

Voyage expenses

 

4,385

 

2,461

 

65,286

 

9,209

Vessel operating expenses

 

20,271

 

9,009

 

111,451

 

45,563

Drilling units operating expenses

 

-

 

-

 

259,623

 

-

Depreciation and amortization

 

672

 

871

 

227,652

 

3,466

Vessels impairment, (gain)/loss on sales and other

 

119,054

 

64,507

 

1,085,357

 

106,343

Goodwill impairment charge

 

-

 

7,002

 

-

 

7,002

General and administrative expenses

 

14,814

 

14,333

 

104,912

 

39,708

Other, net

 

(145)

 

1,014

 

(2,948)

 

(258)

 

 

 

 

 

 

 

 

 

Operating loss

 

(135,285)

 

(86,353)

 

(881,508)

 

(159,099)

 

 

 

 

 

 

 

 

 

OTHER INCOME / (EXPENSES):

 

 

 

 

 

 

 

 

Interest and finance costs, net of interest income

 

(3,020)

 

(1,713)

 

(171,605)

 

(8,776)

Gain on debt restructuring

 

-

 

10,465

 

-

 

10,477

(Gain)/loss on interest rate swaps

 

718

 

-

 

(11,601)

 

403

Other, net

 

(2,617)

 

102

 

(9,275)

 

(199)

Income taxes

 

(188)

 

(17)

 

(37,119)

 

(38)

Total other income/(expenses), net

 

(5,107)

 

8,837

 

(229,600)

 

1,867

 

 

 

 

 

 

 

 

 

Net loss

 

(140,392)

 

(77,516)

 

(1,111,108)

 

(157,232)

 

 

 

 

 

 

 

 

 

Loss due to deconsolidation of Ocean Rig

 

-

 

-

 

(1,347,106)

 

-

Equity in losses of Ocean Rig

 

(387,281)

 

-

 

(349,872)

 

(41,454)

Net (income)/loss attributable to Non controlling interests

 

54

 

-

 

(38,975)

 

-

 

 

 

 

 

 

 

 

 

Net loss attributable to DryShips Inc.


$

(527,619)


$

(77,516)

$

(2,847,061)

$

(198,686)

 

 

 

 

 

 

 

 

 

Net loss attributable to DryShips Inc. common stockholders

 

(527,619)

 

(84,607)

 

(2,847,631)

 

(206,381)


Loss per common share, basic and diluted (1)(2)

$

(9,518.31)

$

(54.16)

$

(51,389.22)

$

(464.76)

Weighted average number of shares, basic and diluted (1) (2)

 

55,432

 

1,562,258

 

55,413

 

444,056

 

 

 

 

 

 

 

 

 




(1)Shares and per share data for 2015 give effect to a cumulative 1-for-1,500 reverse stock split.

(2)Shares and per share data give effect to the 1-for -8 reverse stock split, approved on January 18, 2017, which became effective on January 23, 2017.




DryShips Inc.


Unaudited Condensed Consolidated Balance Sheets


(Expressed in Thousands of U.S. Dollars)

 

December 31, 2015

   




December 31, 2016

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents, including restricted cash (current and non-current)

$

15,026

$

76,774

 

Assets held for sale

 

216,026

 

-

 

Other current assets  

 

38,015

 

19,906

 

Vessels, net

 

96,428

 

95,550

 Investment in affiliate

 

91,410

 

-

 Other non-current assets

 

19,147

 

1,500

 

Total assets

 

476,052

 

193,730

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt

 

236,942

 

133,428

 

Liabilities held for sale

 

104,366

 

-

 

Total other liabilities

 

13,332

 

10,528

 

Total stockholders’ equity

 

121,412

 

49,774

 

Total liabilities and stockholders’ equity

$

476,052

$

193,730

 

 

 

 

 

 

 

Adjusted EBITDA Reconciliation

Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortization, goodwill, vessel and investment impairments and certain other non-cash items as described below, dry-dockings, class survey costs and gains or losses on interest rate swaps. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of adjusted EBITDA may not be comparable to that reported by other companies. Adjusted EBITDA is included herein because it is a basis upon which the Company measures its operations. Adjusted EBITDA is also used by our lenders as a measure of our compliance with certain covenants contained in our loan agreements and because the Company believes that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

The following table reconciles net loss to Adjusted EBITDA:

(Dollars in thousands)

 

Three Months Ended December 31, 2015

 

Three Months Ended December 31, 2016

 

Year Ended         December 31, 2015

 

Year Ended      December 31, 2016

 

 

 

 

 

 

 

 

 

Net loss attributable to Dryships Inc

$

(527,619)

$

(77,516)

$

(2,847,061)

$

(198,686)

 

 

 

 

 

 

 

 

 

Add: Net interest expense

 

3,020

 

1,713

 

171,605

 

8,776

Add: Depreciation and amortization

 

672

 

871

 

227,652

 

3,466

Add: Dry-dockings and class survey costs

 

3,393

 

-

 

23,686

 

181

Add: Impairments losses, (gain)/loss on sales and other

 

119,054

 

64,507

 

1,108,587

 

106,343

Add: Goodwill impairment charge

 

-

 

7,002

 

-

 

7,002

Add: Loss due to deconsolidation of Ocean Rig

 

-

 

-

 

1,347,106

 

-

Add: Gain on debt restructuring

 

-

 

(10,465)

 

-

 

(10,477)

Add: Income taxes

 

188

 

17

 

37,119

 

38

Add: (Gain)/Loss on interest rate swaps

 

(718)

 

-

 

11,601

 

(403)

Add: Equity in losses of affiliate

 

387,281

 

-

 

349,872

 

41,454

Add: Net income/(loss) attributable to Non controlling interests

 

(54)

 

-

 

38,975

 

-

Adjusted EBITDA

$

(14,783)

$

(13,871)

$

469,142

$

(42,306)

About DryShips Inc.


DryShips Inc. is a diversified owner of ocean going cargo vessels that operate worldwide.  The Company owns a fleet of 13 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.0 million tons, 1 Very Large Gas Carrier newbuilding and 6 offshore supply vessels, comprising 2 platform supply and 4 oil spill recovery vessels.


DryShips’ common stock is listed on the NASDAQ Capital Market where it trades under the symbol “DRYS.”

Visit the Company’s website at www.dryships.com


Forward-Looking Statement


Matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with such safe harbor legislation.


Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company’s control, the Company cannot assure you that it will achieve or accomplish these expectations, beliefs or projections.


Important factors that, in the Company’s view, could cause actual results to differ materially from those discussed in the forward-looking statements include the factors related to the strength of world economies and currencies, general market conditions, including changes in charter rates and vessel values, failure of a seller or shipyard to deliver one or more vessels, failure of a buyer to accept delivery of a vessel, our inability to procure acquisition financing, default by one or more charterers of our ships, changes in demand for drybulk or LPG commodities, changes in demand that may affect attitudes of time charterers, scheduled and unscheduled drydocking, changes in our voyage and operating expenses, including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations, changes in our relationships with the lenders under our debt agreements, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, international hostilities and political events or acts by terrorists.


Risks and uncertainties are further described in reports filed by DryShips Inc. with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 20-F.

Investor Relations / Media:

Nicolas Bornozis

Capital Link, Inc. (New York)

Tel. 212-661-7566

E-mail: dryships@capitallink.com







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