As predicted by perceptive colleague Chris Barker, the perfect storm has left a gaping hole in the side of DryShips
Investors insistent on sticking by the shipper were in serious need of some good news. They got it in the form of a deepwater drilling contract with Brazilian behemoth Petrobras
In case you haven't been following DryShips' deepwater diversion, DryShips has both acquired drilling contractor Ocean Rig and ordered four newbuild rigs. One of the acquired rigs, the Leiv Eiriksson, comes off contract with Royal Dutch Shell later this year, making it one of the only deepwater rigs with near-term availability, and thus an important barometer for the state of the market.
At $630 million for a three-year stint, that's about a $575,000 dayrate. That's solid, but well off the record highs notched by Transocean
Petrobras says it's using the rig to explore in the Black Sea, which I assume means the Turkish blocks battled over back in 2006. Petrobras outbid ExxonMobil
If I were DryShips, I would be counting my blessings to have landed such a marquis customer, with a good-not-great contract, in this time of company tumult. The deepwater drilling segment may very well save the whole ship from sinking.