DryShips Opts for Second VLGC Newbuild

Posted by Eric Haun

DryShips Inc., owner of ocean going cargo vessels, said it has
exercised its second option under a previously announced option
agreement to acquire up to four very large gas carriers (VLGCs)
currently under construction at Hyundai Heavy Industries Co.,
Ltd. (HHI) for a purchase price of $83.5 million.

George Economou, DryShips Chairman and Chief Executive Officer,
said, "This second investment in the gas carrier segment marks
our confidence to the expected positive long-term fundamentals of
the gas market and allows us to deploy the company's available
liquidity immediately."

Approximately 25 percent of the purchase price will be paid on
closing, expected within March 2017, with the balance payable in
installments until the vessel's delivery from HHI.

The VLGC will be employed on a fixed rate time charter with five
years firm duration to an oil major. The charterer has options to
extend the firm employment period by up to three years.

"We are very pleased to have declared our second option to
purchase a high specification VLGC with long term employment to
an oil major at above market rates," Economou said.

DryShips said it expects the total gross backlog associated with
this time charter to be $54 million, or $92.7 million including
the optional periods, and expects to take delivery of the vessel
in September 2017.

The transaction was approved by the independent directors of the
company based on third party broker valuations.

Mar 6, 2017

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