Cargo ship owner DryShips has acquired one[ds_preview] Very Large Gas Carrier (VLGC) currently under construction at Hyundai Heavy Industries (HHI) for a purchase price of 83.5 mill. $. The VLGC will be employed on a fixed rate time charter with five years firm duration to an oil major.
According to the the company the closing price of 21.9 mill. $ was financed by using part its undrawn liquidity under the 200 mill. $ New Sifnos Revolver, which now stands at 142.9 mill. $. The 61.6 mill. $ balance of the purchase price for the VLGC will be 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. The Company expects a total gross backlog associated with this time charter of up to 92.7 mill. $ including the optional periods, and expects to take delivery of the vessel in June 2017.
Anthony Kandylidis, President and Chief Financial Officer, commented: »We are very pleased to have acquired our first high specification VLGC newbuilding opening a new era of investments since the restructuring of our balance sheet. The closing of our first investment in the gas carrier segment, which we believe will be highly accretive to earnings and cash flow, was financed by our New Sifnos Revolver evidencing once more Mr. George Economou’ s commitment to DryShips.«
DryShips owns a fleet of 13 Panamax drybulk carriers with a combined deadweight tonnage of approximately 1.0 mill. t, one Very Large Gas Carrier newbuilding and six offshore supply vessels, comprising two platform supply and four oil spill recovery vessels. The Company’s common stock is listed on the NASDAQ Capital Market where it trades under the symbol “DRYS.”
