Repeat $18.2m second quarter loss for Dryships

For the same periods, earnings on an EBITDA basis fell from $144.6m in 2012 to $112.3 this year.

George Economou, chairman and ceo of Dryships, commented, "We continue to be defensive about the short-term prospects of the shipping markets. Asset prices seem to be holding up but we do not expect any positive development in drybulk and tanker charter rates this year. As a result we have focused this year on reducing our breakeven levels. We lowered our newbuilding capital expenditures significantly and are now focusing on other areas."

As well as its cost cutting exercise, Dryships has managed to add supplemental agreements to two bank loans, deferring principal instalments until maturity and offering 5.4m shares in majority owned subsidiary Ocean Rig as additional security.

Offshore deepwater drilling outfit Ocean Rig enjoyed a busy July, receiving a $677m contract from Total for a three year drilling campaign off West Africa for its rig Ocean Rig Apollo, a $1.3bn letter of award for Ocean Rig Skyros for six years off West Africa, both expected to commence at the start of 2015, and a $190m five-well programme for Ocean Rig Skyros starting from the rig's delivery in November.

"In terms of our shareholding in Ocean Rig, we are pleased with Ocean Rig's solid results for the quarter. In addition, Ocean Rig's consummation of the $1.9bn term loan transaction was vital, not only in terms of the net cash flow it will generate, but also in terms of the additional financial flexibility for Ocean Rig that it will provide. As the largest shareholder in Ocean Rig, we believe it is optimally positioned in the ultra-deepwater drilling market and we continue to be positive about the prospects for Ocean Rig, whose contract backlog currently stands at approximately $6bn," Economou added.

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