DryShips subsidiary Ocean Rig UDW (ORIG) reached an agreement with Jiangshu Rongsheng Heavy Industries to cancel the newbuilding contracts for four ice-class panama bulker vessels. Under the agreement the company received refunds for all installments paid toward the vessels plus interest.
The company paid $11.5 million for the vessels before cancelling the contracts. DryShips already received all refunds due under the agreement.
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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 find that the company has favored debt over equity in the management of its balance sheet."
Highlights from the analysis by TheStreet Ratings Team goes as follows: