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Rosy outlook from Economou despite Dryships’ red Q2

Rosy outlook from Economou despite Dryships’ red Q2
Dryships reported a $5.6m loss for the second quarter 2014, improving on an $18.2m loss in the same period last year.

The Nasdaq-listed owner net voyage revenues in its dry bulk segment totalled $41.7m, down $0.7m on Q2 2013 while the company's tanker arm improved from $9.1m to $14.2m between the same periods.

Timecharter equivalent (TCE) rates for the dry bulk fleet were down to $12,064 per day from $12,756 per day in Q2 2013, tanker TCE rates jumped over 50% to $15,650 per day from $10,004 per day.

George Economou, chairman and ceo, commented: "Our liquidity position has been positively impacted by the outperforming tanker markets, especially the suezmax and aframax segments which are performing above expectations for this time of the year.

The drybulk carrier segment had a weak second quarter of 2014, but we believe that the pace of newbuilding deliveries is tapering off and when combined with continuing robust demand, will lead to a sustainable recovery in charter rates. Clearly our view is supported by forward charter rates and asset prices which are holding up resiliently, underscoring the positive market expectations."

July was a month of finance deals for Dryships, with refinancing of a $1.3bn senior secured loan and commitment letters for a $170m 9-vessel finance deal with Nordea Bank and $350m bridge loan with ABN AMRO.

"We are delighted to have received firm commitments for a total of up to $520m from ABN AMRO and Nordea Bank, which is a testament of the company's strong and long lasting relationship with commercial lenders and a clear sign of the support DryShips is enjoying from the banking industry," said Economou.