DryShips to Purchase Quartet from Economou Entities

Greece-based ship owner and operator DryShips has reached an agreement to buy four vessels from entities owned by its Chairman and Chief Executive Officer, George Economou.

Under the deal, agreed on October 29, the company would pay USD 198.5 million for three Newcastlemax drybulk carriers and one coated Aframax tanker.

The bulkers were built in 2016 and 2017, respectively, while the tanker was built in 2010.

DryShips explained that the purchase includes existing financing in place and will be effected by way of stock purchase agreements and/or long-term bareboat charter parties with purchase obligations.

All vessels are expected to be delivered to DryShips before the end of 2018 and in connection with the transaction, Economou’s entities have also agreed to time charter the three Newcastlemaxes on index-linked time charters of flexible durations, with DryShips having the option to convert these to fixed rate charters.

The entities, TMS Dry and TMS Tankers, have agreed to forgo all commissions effective under the various respective management agreements in connection with the vessel purchases.

DryShips revealed the acquisitions as part of its financial report for the quarter ended September 30, 2018. The company’s net income for the quarter reached USD 11.6 million, compared to a net loss of USD 17.9 million reported in the same period a year earlier.

Voyage revenues for the period surged to USD 49.5 million from USD 29.9 million seen in the corresponding quarter in 2017.