Impairments pull DryShips into new deficit

Dryships exited the first quarter with a net deficit of USD 59.2 million. Impairments on 10 tankers, which the main shareholder wanted to sell in order to withstand the dry bulk crisis, brought serious downward pressure on the carrier.

Photo: Colourbox

One of the perhaps most vulnerable shipping companies on Wall Street among analysts, Greek-based Dryships - which is also balancing on the edge of a forced delisting - achieved a net deficit of USD 59.2 million in the first quarter 2015. The majority of the great loss stems from an impairment of USD 56.6 million on 10 tankers, according to Dryships' interim report released after the exchange closed on Monday.

In addition to a fleet of almost 40 dry bulk vessels, the company also owns and operates 13 drilling rig vessels (Ocean Rig) and a number of product tankers. Dryships announced in March that the company had plans to divest the entire tanker fleet for a total price of USD 536 million. According to the Greek major shareholder and CEO George Economou - who is also the buyer of the tankers - this would trigger a net sum USD 275 million in liquidities as a shield against the extreme decline in the dry bulk market.

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