One worry eased by the contract is financing of the vessel. The four ships currently under construction are only half-financed, and with $1.49 billion due and only $394 million of cash on the balance sheet, DryShips doesn't have the coin to pay the bill without a big financing package.
Investors have been very concerned about the commitments DryShips has made getting into the drilling business. DryShips faces plenty of risks as a relative newcomer, competing with the likes of Transocean
Deepwater drilling rigs give DryShips a more diversified base Diana Shipping
This is a step in the right direction for DryShips, which now needs a contract for the second ship being delivered in the first quarter next year and two more down the line. When these contracts are announced, the stock tends to jump as we saw this week. If you believe ultra-deepwater drilling isn't dead and DryShips' red flags don't scare you off, now could be a good time to get in.
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