I think rates will indeed average higher this year and next, probably in 2016. Problem is expectations. Most dream of the days when the BDI was over 10,000. That won't ever happen again. But the industry rolled along with an average BDI of 1200-1500 up until China joined the WTO. So an average of 2000-2500 is quite good.
They are SHORT the stock. Those shares they "hold" are BORROWED. They got them when they issued the bond and they have returned SOME of them.
Yes, XOM did not go to the Russian Arctic because they think the future is in shale or fracking. More and more of the ocean bottom will yield more and more oil. UDW exploration will likely double in the next decade from where it is now. And with all the new rigs on line and working now, the money being spent is HUGE. Those that say the budgets for UDW are declining just don't understand how many more UDW rigs there are now compared to this time last year!
result in the forgiveness of $3,700,000. That will make them "debt" free with 4 ships worth about $10-12 million and who know how many shares. Their revenues will not even be known until June of next year unless they file some sort of new prospectus that has some data about current charters.
LOL! Yeah, they have made such stellar decisions since they IPO'ed at a split adjusted price of $1335.00 per share that the new low of $0.28 is the result.
Yes, as many waterborne commerce companies are… There, and the Marshall Islands. They do it for the lack of taxation and regulation.
From the Ukraine:
"The lawmakers also approved two laws meant to fulfill the promises Ukraine made in negotiating a shaky cease-fire with the rebels after five months of armed conflict. One of the laws grants temporary autonomy to two regions, Donetsk and Luhansk, where the rebels tried to break away from Ukraine. The other grants amnesty to separatists who did not commit war crimes."
Oh, and the rates that are "softening" are wildly misreported. Who cares if the HUGE fleet of midwater floaters that can only drill in 5000 ft of water or less and have an average age of 32 years old is seeing severe weakness? That just means that new, young modern rigs such as ORIG and SDRL have will take over as the others are cold stacked and eventually just broken up.
They are lazy and just got around to looking at fleet status report, I imagine. 76 more days in Q3 than in Q2 and at a higher average rate due to the Athena being at $686 per day for the entire quarter v. just 20 or so in Q2.
They estimate they have $135 million per quarter in free cash flow. Adding $125 million from the $536 million in cash on hand at the end of Q2 and they got it covered for the entire thing, with DRYS getting $153 million of it. Then they do the MLP they have been talking about and DRYS income goes WAY up.
That ship was over 50% of their assets. And now they have to pay $5325 a day NOT counting CREW, stores, lubes and spares. It does NOT include management fees or op ex. This vessel is 10% smaller than the Supramax standard used to compile the BSI. So if the BHSI is $9000, the Jupiter would expect to get $8100. And since it is 13 years old and not the standard FIVE, it probably gets even less than that. FREE could very well end up paying the charterer nearly $2 million a year for SEVEN years and actually lose money on the deal. They can no longer say they are owner/operators of Handymax and Handysize bulkers. Now, just Handysize and tiny old ones at that.
Seriously, did you fall down and smack your head or did your mommy drop you?
"DB can't be oblivious, to fact Drys no longer owns Orig.. "
They aren't, you are. You had it wrong in 2011 and now. They didn't own 100% then, and now they own 59.4%.
"As for $2. divvy.. That would be more than Drys is worth.."
You exhibit a profound inability to comprehend what you read. I was talking about a special from ORIG that would give DRYS $156 million.
"There could be some additional downside but how much?"
You would certainly know "downside". You have lost your tuchus on this because you are too lazy to do any real research and must be too much of a gambler to look at companies with real prospects.
No one is sure that there ARE any sanctions affecting SDRL yet. SDRL is Norwegian. Norway is not part of the EU nor the US. With the ceasefire largely holding and prisoners being released on both sides, things at the moment are looking like progress is being made. The EU will revisit their sanctions at the end of this month.
ORIG will be up about 10% in revenues. Maybe they pay a $2 special dividend since George wants George to do well at DRYS.