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Dryships slumps to $59.2m net loss in Q1

Dryships slumps to $59.2m net loss in Q1
Dryships racked up a $59.2m net loss in Q1 dragged down by an impairment on its tanker fleet and a “grueling” dry bulk market.

Dryships, which operates in the dry bulk, offshore drilling and tanker segments is planning to sell its tanker fleet for $536m to companies owned by its chairman and ceo George Economou.

In the first quarter the company took a $56.6m impairment charge on its 10 tankers, without the impairment charge the net loss in Q1 would have been $2.6m.

“Despite the grueling drybulk market which is at historical lows, our results were boosted by an exceptional quarter of our drilling segment and strong TCE performance of our tankers, averaging over $35,000 per day,” Economou said.

For its dry bulk fleet in the first quarter the average TCE rate per day per vessel was $10,535 compared to $13,564 in the same period a year earlier.

Economou said that the sale of its tanker fleet would provide $275m in free cash, “which will provide DryShips with sufficient liquidity to withstand a prolonged downturn in the drybulk market”.