DryShips Inc., an international owner of drybulk carriers and offshore support vessels, announced its unaudited financial and operating results for the quarter ended December 31, 2015.
Fourth Quarter 2015 Financial Highlights:
- For the fourth quarter of 2015, the Company reported a net loss of $527.6 million, or $0.79 basic and diluted loss per share.
Included in the fourth quarter 2015 results are:
- Vessel impairment charges and non-cash losses, of $119.1 million, or $0.18 per share.
- Non-cash write down of our investment in Ocean Rig of $310.5 million, or $0.47 per share.
- Excluding these impairment charges and losses, the Company’s net results would have amounted to a net loss of $98.0 million, or $0.14 per share. (1)
- The Company reported negative Adjusted EBITDA of $14.8 million for the fourth quarter of 2015. (2)
Recent Highlights
On March 3, 2016, the Company received notice of termination from Petroleo Brasileiro S.A. (Petrobras) of the contract for the oil spill recovery vessel Vega Juniz effective as of March 9, 2016. The contract of the Vega Juniz was expiring on April 25, 2017 and this termination represents a loss in contracted EBITDA of approximately $2.8 million for the balance of 2016.
On February 19, 2016, the Company’s Board of Directors (the “Board”) approved a 1-for-25 reverse stock split of the Company’s common shares. The reverse stock split will take effect, and the Company’s common stock will begin trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on March 11, 2016.
On February 15, 2016, the Company announced that the previously disclosed sale of its Capesize vessels, the Fakarava, Rangiroa and Negonego, to entities controlled by its Chairman and CEO Mr. George Economou has failed. In addition, the Company reached a settlement agreement with the charterer of these vessels for an upfront lump-sum payment and the conversion of the daily rates to index-linked time charters.
On February 15, 2016, the Company announced that Petrobras has given notice of termination of the contract for the platform supply vessel Vega Crusader effective as of March 6, 2016. The contract of the Vega Crusader was expiring on January 8, 2017 and this termination represents a loss in contracted EBITDA of approximately $2.2 million for the balance of 2016.
(1) The net result includes approximately 40.44% of Ocean Rig’s results, which are owned by DryShips Inc. common shareholders.
(2) Adjusted EBITDA is a non-GAAP measure; please see later in this press release for reconciliation to net loss.
(3) Shares and per share data does not give effect to the 1-for -25 reverse stock split, approved on February 19, 2016, which becomes effective on March 11, 2016.
Bank Update / Liquidity
Given the prolonged market downturn in the drybulk segment and the continued depressed outlook on freight rates, the Company is presently engaged in discussions with its lenders for the restructuring of its debt facilities.
Three of these bank facilities have matured and the Company has not made the final balloon installment. For the remaining bank facilities, the Company has elected to suspend principal repayments to preserve cash liquidity.
Related news: Dryships Acquires Six Offshore Supply Vessels from Nautilus Offshore
Source: DryShips Inc.