DryShips has completed the dry-docking and installation of ballast water treatment systems (BWTSs) and scrubbers on seven of its vessels, the Greek ship owner and operator informed.
This is in line with the company’s plan to future proof its fleet, estimated to be worth up to USD 100 million and announced in May this year.
As of September 17, 2019, DryShips incurred about USD 26.1 million of total costs and 300 off-hire days.
“For the balance of 2019 and the full year 2020, we expect to continue to execute our plan to upgrade additional vessels and we expect to incur approximately 843 off-hire days for a total estimated cost of USD 65.8 million,” the company said .
What is more, DryShips revealed it has entered into agreements with financial institutions and export credit agencies to borrow up to USD 36.4 million to partly finance scrubber installations. The loans have not yet been drawn, the company added.
The developments related to the future proofing of the company’s fleet were disclosed in DryShips’ results for the second quarter of this year. The company reported a net loss of USD 12.7 million in Q2 2019, against a net income of USD 3.2 million seen in the corresponding period a year earlier. As explained, the results were impacted by vessel dry-docking costs and vessel impairments.
Additionally, revenues dropped to USD 40.5 million in Q2 2019 from USD 42.6 million posted in Q2 2018.
In August this year, DryShips entered into an agreement and plan of merger with SPII Holdings. Under the merger deal, DryShips is to be merged into a subsidiary of SPII Holdings, a company controlled by DryShips’ chairman and CEO, George Economou. Economou would buy DryShips’ outstanding shares for USD 5.25 per share in cash.
On October 9, 2019, a special meeting will be held in Athens where the company’s shareholders would be asked to consider the proposal to authorize and approve the merger. In addition, the merger is subject to the satisfaction or waiver of other customary closing conditions.
According to DryShips, the merger is expected to be closed in the fourth quarter of this year.
Following the acquisition of commercial tanker pool operator Heidmar in June, DryShips operates a fleet of 32 vessels comprising bulkers, tankers and offshore support vessels.