This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

DryShips' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: DRYS

Slide eight; on this slide we present our tanker CapEx. On the back of a full vessel financing package we executed in the first quarter with ABN AMRO and the Import-Export Bank of Korea, we're pleased to announce another ECA backed financing package for three of our tankers. We signed a term sheet with ABN AMRO, Korea Development Bank and Korea Trade Insurance Corporation or KSURE for $107.7 million senior secured term loan facility to finance the tankers Alicante, Mareta and Bordeira.

This financing has very competitive pricing in light of today’s solid banking market and has a six year maturity and 12 year repayment profile. As you can see, our tanker newbuilding program is nearly fully financed and we signed both our commercial lending partners and especially our new found friends Korean ECA’s who have been invaluable in this process.

Slide nine. This slide details a secured debt profile of the drybulk and tanker segments as of June 30, 2012. On a related topic, I want to reconfirm that currently we’re in technical breach of some of our drybulk loans. Most specifically, we have accumulated shortfalls on our VMC required ratios amounting to approximately $145 million at the end of June of 2012. We are in discussions with the effective banks to remediate above breaches by way of providing additional collateral whether in the form of cash or shares. So we’ll keep you updated in this respect.

This marks the end of the financial section; I'll now turn the call over to Pankaj for the company update.

Pankaj Khanna

Good morning, turning to slide 11. We are pleased to report the signing of letters of intent with three major oil companies for three of our drillships including two of our Newbuilding. The additional backlog from these three contracts is approximately $2.2 billion over three years. Assuming these contracts materialize, our total backlog was nearly double from $2.6 billion to $4.8 billion and will provide Ocean Rig with substantial cash flow visibility and growth.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs