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DryShips working to secure additional waiver agreements
By Jennifer Lanning Drey
Portland, Ore., July 31 - DryShips Inc. secured waivers for $1.9 billion of its debt in the second quarter and hopes to secure waivers for an additional $380 million of debt by the end of September, Pankaj Khanna, chief operating officer of DryShips, said Friday during the company's second-quarter earnings conference call.
Approximately 85% of the company's debt is either not in breach of covenant or already has secured waivers, he said.
At June 30, DryShips had liquidity of $810 million and a debt to capitalization ratio of 53%.
DryShips expects its liquidity position to improve going forward as a result of its July acquisition of the remaining 25% minority interest in Primelead Shareholders Inc., which will allow the company to benefit from 100% of the cash flow from the ultra deepwater drilling segment, he said.
As a result, cash will be preserved for distressed acquisitions, the CFO added.
Looking forward, DryShips believes its debt repayment schedule represents "a realistic state of affairs," Khanna said.
The company currently has $206.79 million of long-term debt due in the remainder of 2009, $405.86 million due in 2010, $392.48 million due in 2011 and $220.61 million in 2012, he said.
DryShips reported a second-quarter net profit of $52.8 million, compared with a net profit of $299.8 million for the same period in 2008. EBITDA was $127.0 million in the current-year quarter, versus EBITDA of $359.8 million for the same period of 2008.
DryShips is a Greece-based provider of marine transportation services for drybulk cargoes and off-shore contract drilling oil services.
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