4 billion worth of debt vs. WHAT in assets? You sound pretty stupid saying that. They have TEN $700 MILLION dollar drilling rigs and nearly $750 million in cash. Wow.
You do understand it is adding a contract for an additional rig, correct? It isn't just for one rig and it adds $180 million to the total backlog.
"This contract with RWE takes some of the operational risk off the table "
Barely. Most companies run about 90% utilization on spot. Having indexed charters only helps a little.
Only upside is if rates for Capes go up. Drybulk is in a world of hurt now. I'd consider taking profits soon. This seems to be a tempest in a teapot.
"They have no real cash flow"
LOL! You need to learn to read financials.
Why will the value of their rigs be written down? They have new rigs and they are getting lots of new contracts.
Not even close. They do not save a penny on the fuel since they burn the same amount. Exactly the same amount. If they didn't, the older tankers wouldn't even get work, they would be scrapped and new tankers built. You are saying that a shipper of crude would expect a discount of 20% for a voyage hauling their product at the same speed in the same quantity with the same assurances that it arrives as contracted merely because the ship has been around for a bit longer. That is stupid and it doesn't happen.
3rd... Rig has retired many of their old fleet and will retire more. Then nobody can make fun of them no more!
They get a "premium" only because these ships are "eco-designs". The jury is still out on whether the savings is real or not for these designs. Much of the savings comes from the smaller, less powerful mains. These are fine in calm seas with little or no headwinds and when the charter party allows for slow steaming. But "regular" capes save 20% when they slow steam as well. So many think that shipbuilders have discovered a magic bullet for fuel savings. They haven't. Much of it is smoke and mirrors.
Recently SALT changed some orders from bulkers to product tankers. Another way to reduce the ridiculous orderbook.
And they bought another contracted drillship with about $600 million left to go on the agreement.
These contracts are not all that. Tied to the market? That's spot. Full time employment? Fine, but can be at a loss at times.