NEW YORK (TheStreet) -- Drybulk carrier DryShips (DRYS) surged in morning trading on Thursday after the company suspended a previously announced stock offering. While details of the suspension were scarce, the company said in a statement that it reserved the right to reactivate or terminate the program at any time.
The Greece-based shipper announced in October it planned to offer $200 million of common shares to raise capital and put the company in good stead for 2014.
"Drybulk shipping rates and ship values have increased recently and we believe this trend will continue, particularly in the larger asset classes," said CEO George Economou in a statement early October. "We believe this is an opportune time to flexibly access the equity capital markets to reduce some or all of our funding needs through 2014 that we currently estimate at $150 million."
The company also said it was nearing agreements with banks to repay debt service payments in 2014. In the third quarter ended Sep. 30, DryShips had $5.2 billion in debt on its balance sheet.
During Thursday morning trading, DryShips shares were up 5.5% to $3.59. Year to date, the stock has risen 118%.
TheStreet Ratings team rates DryShips Inc as a Hold with a ratings score of C-. The team has this to say about its recommendation:
"We rate DryShips Inc (DRYS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."