DryShips Inc. Reports Financial and Operating Results for the Second Quarter 2013

DryShips Inc. Reports Financial and Operating Results for the Second Quarter 
2013 
ATHENS, GREECE -- (Marketwired) -- 08/07/13 --  DryShips Inc.
(NASDAQ: DRYS), or DryShips or the Company, an international provider
of marine transportation services for drybulk and petroleum cargoes,
and through its majority owned subsidiary, Ocean Rig UDW Inc., or
Ocean Rig, of offshore deepwater drilling services, today announced
its unaudited financial and operating results for the second quarter
ended June 30, 2013. 
Second Quarter 2013 Financial Highlights 


 
--  For the second quarter of 2013, the Company reported a net loss of
    $18.2 million, or $0.05 basic and diluted loss per share.
    
    
--  The Company reported Adjusted EBITDA of $112.3 million for the second
    quarter of 2013, as compared to $140.2 million for the second quarter
    of 2012. (1)

  
Recent Events 


 
--  On August 1, 2013, the Company entered into two supplemental
    agreements related to two bank loans dated October 5, 2007 and March
    13, 2008, respectively, to amend certain terms and cure a shortfall in
    the security cover ratio, and pledged an aggregate of 5,450,000 of its
    shares of Ocean Rig as additional security under the loans.
    
    
--  On July 30, 2013, Ocean Rig signed definitive documentation with Total
    E&P Congo, following the previously announced Letter of Award, for
    its ultra deepwater drillship Ocean Rig Apollo. The contract is for a
    three-year drilling campaign offshore West Africa, with an estimated
    backlog of approximately $677 million, and is expected to commence in
    the first quarter of 2015.
    
    
--  On July 19, 2013, Ocean Rig received a Letter of Award for its ultra
    deepwater drillship Ocean Rig Skyros from a major oil company. The
    Letter of Award is for a six-year contract for drilling offshore West
    Africa, with an estimated backlog of approximately $1.3 billion. The
    contract is expected to commence in direct continuation of the
    previous contract for the Ocean Rig Skyros with Total E&P Angola
    before the first quarter of 2015.
    
    
--  In July 2013, Ocean Rig entered into a $1.9 billion senior secured
    term loan facility, comprised of tranche B-1 term loans in an
    aggregate pr
incipal amount equal to $1,075.0 million and tranche B-2
    term loans in an aggregate principal amount equal to $825.0 million,
    with respective maturity dates in the first quarter of 2021 and the
    third quarter of 2016.
    
    
--  On July 10, 2013, Ocean Rig entered into a drilling contract with
    Total E&P Angola for a five-well program or a minimum of 275 days
    for its ultra deepwater drillship Ocean Rig Skyros for drilling
    offshore West Africa, with an estimated backlog of approximately $190
    million. The Ocean Rig Skyros is expected to commence this contract
    upon delivery from the shipyard in November 2013.
    
    
--  On May 23, 2013 and June 18, 2013, the Company took delivery of its
    two VLOCs under construction in China and drew down the maximum amount
    available under the secured term loan facility with China Development
    Bank.

  
George Economou, Chairman and Chief Executive Officer of the Company,
commented: 
"We continue to be defensive about the short-term prospects of the
shipping markets. Asset prices seem to be holding up but we do not
expect any positive development in drybulk and tanker charter rates
this year. As a result we have focused this year on reducing our
breakeven levels. We lowered our newbuilding capital expenditures
significantly and are now focusing on other areas.  
As part of this effort, during the second quarter of 2013, we
accelerated our discussions with our lenders to lower our debt
service requirements. So far, we concluded an agreement with a lender
to, among other things, defer certain principal installments until
maturity. As part of this transaction, we provided a pledge of Ocean
Rig shares, underlining our commitment to reach viable solutions with
our lenders.  
We are cautiously optimistic expecting a sustainable recovery in 2014
and beyond and believe DryShips is well positioned to take advantage
of the ensuing recovery in charter rates in the drybulk and tanker
sectors.  
In terms of our shareholding in Ocean Rig UDW Inc., we are pleased
with Ocean Rig's solid results for the quarter. In addition, Ocean
Rig's consummation of the $1.9 billion term loan transaction was
vital, not only in terms of the net cash flow it will generate, but
also in terms of the additional financial flexibility for Ocean Rig
that it will provide. As the largest shareholder in Ocean Rig, we
believe it is optimally positioned in the ultra-deepwater drilling
market and we continue to be positive about the prospects for Ocean
Rig, whose contract backlog currently stands at approximately $6.0
billion."  
Financial Review: 2013 Second Quarter
 The Company recorded a net
loss of $18.2 million, or $0.05 basic and diluted loss per share, for
the three-month periods ended June 30, 2013 and 2012, respectively.
Adjusted EBITDA was $112.3 million for the second quarter of 2013, as
compared to $140.2 million for the same period in 2012.(2) 
For the drybulk carrier segment, net voyage revenues (voyage revenues
minus voyage expenses) amounted to $42.4 million for the three-month
period ended June 30, 2013, as compared to $58.6 million for the
three-month period ended June 30, 2012. For the tanker segment, net
voyage revenues amounted to $9.1 million for the three-month period
ended June 30, 2013, as compared to $8.5 million for the same period
in 2012. For the offshore drilling segment, revenues from drilling
contracts decreased by $3.7 million to $259.8 million for the
three-month period ended June 30, 2013, as compared to $263.5 million
for the same period in 2012.  
Total vessels', drilling rigs' and drillships' operating expenses and
total depreciation and amortization decreased to $142.5 million and
increased to $85.8 million, respectively, for the three-month period
ended June 30, 2013, from $167.3 million and $84.1 million,
respectively, for the three-month period ended March 31, 2012. Total
general and administrative expenses remained approximately the same
at $37.2 million in the second quarters of 2013 and 2012,
respectively.  
Interest and finance costs, net of interest income, amounted to $56.0
million for the three-month period ended June 30, 2013, compared to
$49.8 million for the three-month period ended June 30, 2012.  
(1) Adjusted EBITDA is a non-GAAP measure; please see later in this
press release for reconciliation to net income. 
(2)  Adjusted EBITDA is a non-GAAP measure; please see later in this
press release for a reconciliation to net income. 
Settlement with Cairn Energy 
In July 2013, Ocean Rig reached an out of court settlement with Cairn
Energy to receive compensation amounting to $5.0 million against an
outstanding receivable of $11.0 million. As a result, during the
second quarter of 2013, Ocean Rig wrote off $6.0 million. This
agreement is subject to definitive documentation.  
Fleet List 
 The table below describes our fleet profile as of July
31, 2013: 


 
                                                 Gross                      
                       Year                      rate         Redelivery    
                       Built DWT     Type        Per day   Earliest   Latest
                      ------ ------- ----------- -------- ---------- -------
Drybulk fleet       
                                                        
----------------------                                                      
                                                                            
Capesize:                                                                   
Rangiroa               2013  206,000 Capesize    $23,000  Apr-18     Nov-23 
Negonego               2013  206,000 Capesize    $21,500  Mar-20     Feb-28 
Fakarava               2012  206,000 Capesize    $25,000  Sept-15    Sept-20
Mystic                 2008  170,040 Capesize    $52,310  Aug-18     Dec-18 
Robusto                2006  173,949 Capesize    $26,000  Aug-14     Apr-18 
Cohiba                 2006  174,234 Capesize    $26,250  Oct-14     Jun-19 
Montecristo            2005  180,263 Capesize    $23,500  May-14     Feb-19 
Flecha                 2004  170,012 Capesize    $55,000  Jul-18     Nov-18 
Manasota               2004  171,061 Capesize    $30,000  Jan-18     Aug-18 
Partagas               2004  173,880 Capesize    $11,500  Jun-14     Oct-14 
Alameda                2001  170,662 Capesize    $27,500  Nov-15     Jan-16 
Capri                  2001  172,579 Capesize    $10,000  Nov-13     Mar-14 
                                                                            
Panamax:                                                                    
Raraka                 2012  76,037  Panamax     $7,500   Jan-15     Mar-15 
Woolloomooloo          2012  76,064  Panamax     $7,500   Dec-14     Feb-15 
Amalfi                 2009  75,206  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     $9,250   Sep-13     Nov-13 
Saldanha               2004  75,707  Panamax     Spot     N/A        N/A    
Sorrento               2004  76,633  Panamax     $24,500  Aug-21     Dec-21 
Mendocino              2002  76,623  Panamax     Spot     N/A        N/A    
Bargara                2002  74,832  Panamax     Spot     N/A        N/A    
Oregon                 2002  74,204  Panamax     $9,650   Sept-13    Nov-13 
Ecola                  2001  73,931  Panamax     Spot     N/A        N/A    
Samatan                2001  74,823  Panamax     Spot     N/A        N/A    
Sonoma                 2001  74,786  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    
Coronado               2000  75,706  Panamax     Spot     N/A        N/A    
Marbella               2000  72,561  Panamax     Spot     N/A        N/A    
Redondo                2000  74,716  Panamax     $9,250   Sept-13    Nov-13 
Topeka                 2000  74,716  Panamax     $8,450   Oct-13     Dec-13 
Ocean Crystal          1999  73,688  Panamax     Spot     N/A        N/A    
Helena                 1999  73,744  Panamax     Spot     N/A        N/A    
                                                                            
Supramax:                                                                   
Byron                  2003  51,118  Supramax    Spot     N/A        N/A    
Galveston              2002  51,201  Supramax    Spot     N/A        N/A    
                                                                            
                                                                            
                                                 Gross                      
                       Year                      rate         Redelivery    
                       Built DWT     Type        Per day   Earliest   Latest
                      ------ ------- ----------- -------- ---------- -------
Newbuildings                                                                
Panamax:                                                                    
Newbuilding Ice -class                                                      
Panamax 1              2014  75,900  Panamax     Spot     N/A        N/A    
Newbuilding Ice -class                                                      
Panamax 2              2014  75,900  Panamax     Spot     N/A        N/A    
Newbuilding Ice -class                                                      
Panamax 3              2014  75,900  Panamax     Spot     N/A        N/A    
Newbuilding Ice -class                                                      
Panamax 4              2014  75,900  Panamax     Spot     N/A        N/A    
Tanker fleet                                                                
----------------------                                                      
Suezmax:                                                                    
Bordeira               2013  158,300 Suezmax     Spot     N/A        N/A    
Petalidi               2012  158,300 Suezmax     Spot     N/A        N/A    
Lipari                 2012  158,300 Suezmax     Spot     N/A        N/A    
Vilamoura              2011  158,300 Suezmax     Spot     N/A        N/A    
Aframax:                                                                    
Alicante               2013  115,200 Aframax     Spot     N/A        N/A    
Mareta                 2013  115,200 Aframax     Spot     N/A        N/A    
Calida                 2012  115,200 Aframax     Spot     N/A        N/A    
Saga                   2011  115,200 Aframax     Spot     N/A        N/A    
Daytona                2011  115,200 Aframax     Spot     N/A        N/A    
Belmar                 2011  115,200 Aframax     Spot     N/A        N/A    

 
Drilling Rigs/Drillships: 


 
                                 Year                               Backlog 
Unit                             built   Redelivery Operating area    ($m)  
                                 ------- ---------- -------------- ---------
                                                                            
Leiv Eiriksson                   2001    Q2 - 16    Norway            $542  
Eirik Raude                      2002    Q3 - 13    Ireland           $14   
                                                    Sierra Leone,           
                                         Q3 - 14    Ivory Coast       $217  
Ocean Rig Corcovado              2011    Q2 - 15    Brazil            $292  
Ocean Rig Olympia                2011    Q3 - 15    Gabon, Angola     $432  
Ocean Rig Poseidon               2011    Q2 - 16    Angola            $721  
Ocean Rig Mykonos                2011    Q1 - 15    Brazil            $265  
Newbuildings                                                                
                                                                            
                                                                            
Ocean Rig Mylos (Expected                                                   
delivery Aug. 2013)              2013    Q3 - 16    Brazil            $662  
Ocean Rig Skyros (Expected                                                  
delivery No
v. 2013)              2013    Q4 - 14    Angola            $187  
                                         Q4 - 20    Angola         $1,266(1)
Ocean Rig Athena (Expected                                                  
delivery Dec. 2013)              2013    Q1 - 17    Angola            $752  
Ocean Rig Apollo (Expected                                                  
delivery Jan. 2015)              2015    Q1 - 18    Congo             $677  
Total                                                                $6,027 
                                                                            
(1) Letter of Award is subject to definitive documentation.                 

 
Drybulk Carrier and Tanker Segment Summary Operating Data (unaudited) 
(Dollars in thousands, except average daily results) 


 
                                  Three Months Ended     Six Months Ended   
Drybulk                                June 30,              June 30,       
                                 --------------------  -------------------- 
                                    2012       2013       2012       2013   
                                 ---------  ---------  ---------  --------- 
Average number of vessels(1)          35.4       36.6       35.7       36.3 
Total voyage days for vessels(2)     3,200      3,326      6,481      6,566 
Total calendar days for                                                     
 vessels(3)                          3,218      3,328      6,503      6,568 
Fleet utilization(4)                  99.4%      99.9%      99.7%       100%
Time charter equivalent(5)       $  18,319  $  12,756  $  20,213  $  12,085 
Vessel operating expenses                                                   
 (daily)(6)                      $   5,313  $   5,930  $   5,484  $   5,496 
                                                                            
                                  Three Months Ended     Six Months Ended   
Tanker                                 June 30,              June 30,       
                                 --------------------  -------------------- 
                                    2012       2013       2012       2013   
                                 ---------  ---------  ---------  --------- 
Average number of vessels(1)           6.1         10        5.5        9.7 
Total voyage days for vessels(2)       552        910      1,005      1,758 
Total calendar days for                                                     
 vessels(3)                            552        910      1,005      1,758 
Fleet utilization(4)                   100%       100%       100%       100%
Time charter equivalent(5)       $  15,310  $  10,004  $  15,583  $  11,349 
Vessel operating expenses                                                   
 (daily)(6)                      $   8,690  $   6,371  $   8,096  $   7,704 
                                                                            
(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 days.             
(3) Calendar days are the total number of days the vessels were in our      
    possession for the relevant period including dry-docking 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, which would
    otherwise be 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 for the relevant time period.                             

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


 
                                  Three Months Ended     Six Months Ended   
Drybulk                                June 30,              June 30,       
                                 --------------------  -------------------- 
                                    2012       2013       2012       2013   
                                 ---------  ---------  ---------  --------- 
Voyage revenues                  $  62,487  $  48,315  $ 139,508  $  93,797 
Voyage expenses                     (3,865)    (5,890)    (8,508)   (14,448)
                                 ---------  ---------  ---------  --------- 
Time charter equivalent revenues $  58,622  $  42,425  $ 131,000  $  79,349 
                                 ---------  ---------  ---------  --------- 
Total voyage days for fleet          3,200      3,326      6,481      6,566 
Time charter equivalent TCE      $  18,319  $  12,756  $  20,213  $  12,085 
                                                                            
                                  Three Months Ended     Six Months Ended   
Tanker                                 June 30,              June 30,       
                                 --------------------  -------------------- 
                                    2012       2013       2012       2013   
                                 ---------  ---------  ---------  --------- 
Voyage revenues                  $  10,161  $  27,858  $  17,637  $  55,645 
Voyage expenses                     (1,710)   (18,754)    (1,976)   (35,694)
                                 ---------  ---------  ---------  --------- 
Time charter equivalent revenues $   8,451  $   9,104  $  15,661  $  19,951 
                                 ---------  ---------  ---------  --------- 
Total voyage days for fleet            552        910      1,005      1,758 
Time charter equivalent TCE      $  15,310  $  10,004  $  15,583  $  11,349 
                                                                            
                                                                            
                                                                            
                               Dryships Inc.                        
        
                                                                            
                            Financial Statements                            
         Unaudited Condensed Consolidated Statements of Operations          
                                                                            
(Expressed in                                                               
 Thousands of U.S.                                                          
 Dollars                                                                    
except for share and     Three Months Ended           Six Months Ended      
 per share data)              June 30,                    June 30,          
                     --------------------------  -------------------------- 
                         2012          2013          2012          2013     
                     ------------  ------------  ------------  ------------ 
                                                                            
REVENUES:                                                                   
Voyage revenues      $     72,648  $     76,173  $    157,145  $    149,442 
Revenues from                                                               
 drilling contracts       263,491       259,835       426,490       506,279 
                     ------------  ------------  ------------  ------------ 
                          336,139       336,008       583,635       655,721 
                                                                            
EXPENSES:                                                                   
Voyage expenses             5,575        24,645        10,484        50,142 
Vessel operating                                                            
 expenses                  22,251        25,533        43,796        49,643 
Drilling rigs                                                               
 operating expenses       145,052       116,981       230,392       237,740 
Depreciation and                                                            
 amortization              84,079        85,758       166,034       168,418 
Vessel impairments                                                          
 and other, net              (525)        1,443           963        76,783 
General and                                                                 
 administrative                                                             
 expenses                  37,172        37,187        71,146        73,434 
Legal settlements                                                           
 and other, net            (7,425)        5,405        (1,606)        5,390 
                     ------------  ------------  ------------  ------------ 
                                                                            
Operating income /                                                          
 (loss)                    49,960        39,056        62,426        (5,829)
                                                                            
OTHER INCOME /                                                              
 (EXPENSES):                                                                
Interest and finance                                                        
 costs, net of                                                              
 interest income          (49,768)      (56,008)     (100,545)     (112,870)
Gain/ (Loss) on                                                             
 interest rate swaps      (12,963)       23,082       (21,714)       23,478 
Other, net                  4,824         2,011         2,576         2,689 
Income taxes              (11,596)      (10,411)      (21,628)      (24,575)
                     ------------  ------------  ------------  ------------ 
Total other                                                                 
 expenses, net            (69,503)      (41,326)     (141,311)     (111,278)
                     ------------  ------------  ------------  ------------ 
                                                                            
Net loss                  (19,543)       (2,270)      (78,885)     (117,107)
                                                                            
Net income/ (loss)                                                          
 attributable to Non                                                        
 controlling                                                                
 interests                  1,341       (15,940)       13,227       (17,738)
                     ------------  ------------  ------------  ------------ 
                                                                            
Net loss                                                                    
 attributable to                                                            
 Dryships Inc.       $    (18,202) $    (18,210) $    (65,658) $   (134,845)
                     ============  ============  ============  ============ 
                                                                            
Loss per common                                                             
 share, basic and                                                           
 diluted             $      (0.05) $      (0.05) $      (0.17) $      (0.35)
Weighted average                                                            
 number of shares,                                                          
 basic and diluted    380,152,244   382,657,244   380,152,244   382,657,244 
                                                                            
                                                                            
                                                                            
                                Dryships Inc.                               
                                                                            
               Unaudited Condensed Consolidated Balance Sheets              
                                                                            
                                                   December 31,   June 30,  
(Expressed in Thousands of U.S. Dollars)               2012         2013    
                                                  ------------- ------------
                                                                            
ASSETS                                                                      
                                                                            
  Cash and restricted cash (current and non-                                
   current)                                       $     720,458 $    511,437
  Other current assets                                  338,446      414,860
  Advances for vessels and rigs under                                       
   construction and acquisitions                      1,201,807    1,098,106
  Vessels, net                                        2,059,570    2,310,833
  Drilling rigs, drillships, machinery and                                  
   equipment, net                                     4,446,730    4,422,807
  Other non-current assets                              111,480      146,023
                                                  ------------- ------------
  Total assets                                        8,878,491    8,904,066
                                                  ============= ============
                                                                            
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
                                                                            
  Total debt                                          4,386,715    4,436,193
  Total other liabilities                               623,757      5
85,993
  Total stockholders' equity                          3,868,019    3,881,880
                                                  ------------- ------------
  Total liabilities and stockholders' equity      $   8,878,491 $  8,904,066
                                                  ============= ============

 
Adjusted EBITDA Reconciliation
 Adjusted EBITDA represents earnings
before interest, taxes, depreciation and amortization, vessel
impairments, 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
and efficiency. 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: 


 
                                                                            
                                   Three      Three       Six        Six    
                                   Months     Months     Months     Months  
                                   Ended      Ended      Ended      Ended   
                                  June 30,   June 30,   June 30,   June 30, 
(Dollars in thousands)              2012       2013       2012       2013   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net loss                         $ (18,202) $ (18,210) $ (65,658) $(134,845)
                                                                            
Add: Net interest expense           49,768     56,008    100,545    112,870 
Add: Depreciation and                                                       
 amortization                       84,079     85,758    166,034    168,418 
Add: Impairment losses and other         -      1,443          -     76,783 
Add: Income taxes                   11,596     10,411     21,628     24,575 
Add: Gain/(loss) on interest                                                
 rate swaps                         12,963    (23,082)    21,714    (23,478)
                                 ---------  ---------  ---------  --------- 
Adjusted EBITDA                  $ 140,204  $ 112,328  $ 244,263  $ 224,323 
                                 =========  =========  =========  ========= 

 
Conference Call and Webcast: August 8, 2013 
As announced, the Company's management team will host a conference
call, on Thursday, August 8, 2013 at 9:00 a.m. Eastern Daylight Time
to discuss the Company's financial results. 
Conference Call Details 
Participants should dial into the call 10 minutes before the
scheduled time using the following numbers: 1(866) 819-7111 (from the
US), 0(800) 953-0329 (from the UK) or +(44) (0) 1452 542 301 (from
outside the US). Please quote "DryShips." 
A replay of the conference call will be available until August 15,
2013. The United States replay number is 1(866) 247- 4222; from the
UK 0(800) 953-1533; the standard international replay number is (+44)
(0) 1452 55 00 00 and the access code required for the replay is:
2133051#. 
A replay of the conference call will also be available on the
Company's website at www.dryships.com under the Investor Relations
section. 
Slides and Audio Webcast 
There will also be a simultaneous live webcast over the Internet,
through the DryShips Inc. website (www.dryships.com). Participants to
the live webcast should register on the website approximately 10
minutes prior to the start of the webcast. 
About DryShips Inc. 
DryShips Inc. is an owner of drybulk carriers and tankers that
operate worldwide. Through its majority owned subsidiary, Ocean Rig
UDW Inc., DryShips owns and operates 10 offshore ultra deepwater
drilling units, comprising of 2 ultra deepwater semisubmersible
drilling rigs and 8 ultra deepwater drillships, 3 of which are
scheduled to be delivered to Ocean Rig during 2013 and 1 of which is
scheduled to be delivered during 2015. DryShips owns a fleet of 42
drybulk carriers (including newbuildings), comprising 12 Capesize, 28
Panamax and 2 Supramax with a combined deadweight tonnage of
approximately 4.4 million tons, and 10 tankers, comprising 4 Suezmax
and 6 Aframax, with a combined deadweight tonnage of over 1.3 million
tons. 
DryShips' common stock is listed on the NASDAQ Global Select Market
where it trades under the symbol "DRYS." 
Visit the Company's website at www.dryships.com 
Forward-Looking Statement 
Matters discussed in this 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 our records and
other data available from third parties. Although we believe 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 our control, we cannot assure you that it will achieve or
accomplish these expectations, beliefs or projections. 
Important factors that, in our view, could cause actual results to
differ materially from those discussed in the forward-looking
statements include the strength of world economies and currencies,
general market conditions, including changes in charterhire and
drilling dayrates and drybulk vessel, drilling rig and drillship
values, failure of a seller to deliver one or more drilling rigs,
drillships or drybulk vessels, failure of a buyer to accept delivery
of a drilling rig, drillship, or vessel, inability to procure
acquisition financing, default by one or more charterers of our
ships, changes in demand for drybulk commodities or oil, changes in
demand that may affect attitudes of time charterers and customer
drilling programs, scheduled and unscheduled drydockings and
upgrades, changes in our operating expenses, including bunker prices,
drydocking and insurance costs, changes in governmental rules and
regulations or actions taken by regulatory authorities, potential
liability from pending or future litigation, domestic and
international political conditions, potential disruption of shipping
routes due to accidents and political events or acts by terrorists. 
Risks and uncertainties are further described in reports filed by
DryShips Inc. with the U.S. Securities and Exchange Commission. 
Investor Relations / Media:
Nicolas Bornozis
Capital Link, Inc. (New York)
Tel. 212-661-7566
E-mail: dryships@capitallink.com