NEW YORK (TheStreet) -- Shares of DryShips Inc. (DRYS) are higher by 3.38% to $3.21 on Thursday as the stock continues to gain from yesterday's news its majority owned subsidiary Ocean Rig signed a drilling contract for the Eirik Raude, one of its semi-submersible drilling rigs.
The contract is for a minimum of six-well programs for drilling offshore the Falkland Islands, the company said.
The estimated drilling duration is expected to be about 260 days, with a backlog of approximately $165 million.
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The company said it expects the contract to begin during the 2015 first quarter.
Separately, TheStreet Ratings team rates DRYSHIPS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their 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 robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."