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Live from Posidonia

Economou urges Greek shipowners to venture into offshore

Economou urges Greek shipowners to venture into offshore
George Economou has urged all Greek shipowners to look at getting involved in the offshore sector as the margins are better than for conventional shipping.

Economou, chariman, president and ceo of Dryships, said that the margins were better in offshore than shipping and Greek shipowners had the skills to work in offshore.

“In business generally you have certain criteria, in a very mature business you cannot make a lot of profit and shipping is a very fragmented business. In a very fragmented business where the barriers are very low you cannot make money,” he told the 4th Posidonia, analyst & investor day, Capital Link Shipping Forum.

“So the offshore sector is a sector we moved in and urge everyone in Greece to follow, in not quite so much how we got involved, but there are a lot of sectors related to shipping because the margins are better.”

New York-listed dry bulk shipowner Dryships ventured into offshore in 2007 buying into offshore drilling contractor Ocean Rig. Today Majority owned subsidiary Ocean Rig UDW owns and operates two ultra deepwater semisubmersible drilling rigs and nine ultra deepwater drillships, three of which are to be delivered in 2014 and 2015.

“I think that is what we should be looking to going forward as we have the expertise around any type of structure that is floating and we should be doing that where the margins are better, the contracts are longer and you can forecast cashflow better than in dry bulk and tanker business,” Economou said