|
DRYSHIPS INC.
|
||
|
(Registrant)
|
||
|
Dated: August 31, 2017
|
By:
|
/s/ Anthony Kandylidis
|
|
Anthony Kandylidis
|
||
|
President and Chief Financial Officer
|
||
|
|
Six-month period ended
|
|||||||||||||||
|
|
June 30,
|
Change
|
||||||||||||||
|
REVENUES:
|
2016
|
2017
|
Amount
|
%
|
||||||||||||
|
Voyage and time charter revenues (including amortization of above market acquired time charters)
|
$
|
30,198
|
$
|
28,189
|
$
|
(2,009
|
)
|
(6.7
|
)%
|
|||||||
|
Total Revenues
|
30,198
|
28,189
|
(2,009
|
)
|
(6.7
|
)%
|
||||||||||
|
|
||||||||||||||||
|
EXPENSES:
|
||||||||||||||||
|
Voyage expenses
|
3,998
|
6,629
|
2,631
|
65.8
|
%
|
|||||||||||
|
Vessels operating expenses
|
27,513
|
23,234
|
(4,279
|
)
|
(15.6
|
)%
|
||||||||||
|
Depreciation
|
1,723
|
3,102
|
1,379
|
80.0
|
%
|
|||||||||||
|
Impairment loss,(gain)/loss from sale of vessel owning companies and other
|
45,945
|
300
|
(45,645
|
)
|
(99.3
|
)%
|
||||||||||
|
General and administrative expenses
|
18,023
|
15,795
|
(2,228
|
)
|
(12.4
|
)%
|
||||||||||
|
Other, net
|
(761
|
)
|
440
|
1,201
|
(157.8
|
)%
|
||||||||||
|
Operating loss
|
(66,243
|
)
|
(21,311
|
)
|
44,932
|
(67.8
|
)%
|
|||||||||
|
|
||||||||||||||||
|
OTHER INCOME /(EXPENSES):
|
||||||||||||||||
|
Interest and finance costs
|
(5,374
|
)
|
(5,742
|
)
|
(368
|
)
|
6.8
|
%
|
||||||||
|
Interest income
|
28
|
1,033
|
1,005
|
3,589.3
|
%
|
|||||||||||
|
Loss on interest rate swaps
|
(709
|
)
|
-
|
709
|
(100.0
|
)%
|
||||||||||
|
Other, net
|
(2,152
|
)
|
(311
|
)
|
1,841
|
(85.5
|
)%
|
|||||||||
|
Total other expenses, net
|
(8,207
|
)
|
(5,020
|
)
|
3,187
|
(38.8
|
)%
|
|||||||||
|
|
||||||||||||||||
|
LOSS BEFORE INCOME TAXES AND EARNINGS OF AFFILIATED COMPANIES
|
(74,450
|
)
|
(26,331
|
)
|
48,119
|
(64.6
|
)%
|
|||||||||
|
Income taxes
|
(19
|
)
|
(20
|
)
|
(1
|
)
|
5.3
|
%
|
||||||||
|
Equity in net losses of Ocean Rig
|
(41,454
|
)
|
-
|
41,454
|
(100.0
|
)%
|
||||||||||
|
NET LOSS ATTRIBUTABLE TO DRYSHIPS INC.
|
$
|
(115,923
|
)
|
$
|
(26,351
|
)
|
$
|
89,572
|
(77.3
|
)%
|
||||||
|
Twelve months ending
|
Total
(in thousands)
|
|||
|
June 30, 2018
|
$
|
3,711
|
||
|
June 30, 2019
|
3,045
|
|||
|
June 30, 2020
|
3,045
|
|||
|
June 30, 2021
|
3,045
|
|||
|
June 30, 2022
|
3,045
|
|||
|
June 30, 2023
|
22,276
|
|||
|
38,167
|
||||
|
Less: Financing fees
|
(658
|
)
|
||
|
Total debt
|
$
|
37,509
|
||
| · |
our future operating or financial results;
|
| · |
statements about planned, pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including drydocking, surveys, upgrades and insurance costs;
|
| · |
our ability to procure or have access to financing, our liquidity and the adequacy of cash flow for our operations;
|
| · |
our continued borrowing availability under our debt agreements and compliance with the covenants contained therein;
|
| · |
our substantial leverage, including our ability to generate sufficient cash flow to service our existing debt and the incurrence of substantial indebtedness in the future;
|
| · |
our ability to successfully employ our existing and newbuild drybulk, tanker, liquefied petroleum gas and offshore support vessels, as applicable;
|
| · |
our offshore support contract backlog, contract commencements, offshore support contract terminations, offshore support contract option exercises, offshore support contract revenues, offshore support contract awards and platform and offshore support vessels mobilizations and performance provisions,
|
| · |
our capital expenditures and investments in the construction, acquisition and refurbishment of our vessels (including the amount and nature thereof and the timing of completion thereof, the delivery and commencement of operations dates, expected downtime and lost revenue);
|
| · |
statements about drybulk, tanker and liquefied petroleum gas shipping and offshore support market trends, charter rates and factors affecting supply and demand;
|
| · |
our expectations regarding the availability of vessel acquisitions; and
|
| · |
anticipated developments with respect to pending litigation.
|
|
|
Page
|
|
|
|
|
Consolidated Balance Sheets as of December 31, 2016 and June 30, 2017 (unaudited)
|
F-2
|
|
|
|
|
Unaudited Interim Condensed Consolidated Statements of Operations for the six-month periods ended June 30, 2016 and 2017
|
F-3
|
|
|
|
|
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss for the six-month periods ended June 30, 2016 and 2017
|
F-4
|
|
|
|
|
Unaudited Interim Condensed Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2016 and 2017
|
F-5
|
|
|
|
|
Notes to Unaudited Interim Condensed Consolidated Financial Statements
|
F-6
|
|
|
December 31,
|
June 30,
|
||||||
|
ASSETS
|
2016
|
2017
|
||||||
|
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
76,414
|
$
|
104,174
|
||||
|
Restricted cash
|
350
|
-
|
||||||
|
Trade accounts receivable, net of allowance for doubtful receivables of $11 at December 31, 2016 and $19 at June 30, 2017
|
7,528
|
10,342
|
||||||
|
Due from related parties (Note 3)
|
6,674
|
20,315
|
||||||
|
Above market acquired time charter contracts (Note 7)
|
1,500
|
-
|
||||||
|
Prepayments and advances
|
1,158
|
1,666
|
||||||
|
Other current assets (Note 4)
|
4,546
|
9,127
|
||||||
|
Total current assets
|
98,170
|
145,624
|
||||||
|
|
||||||||
|
FIXED ASSETS, NET:
|
||||||||
|
Advances for vessels under construction and related costs (Note 5)
|
-
|
60,824
|
||||||
|
Vessels, net (Note 6)
|
95,550
|
516,629
|
||||||
|
Total fixed assets, net
|
95,550
|
577,453
|
||||||
|
|
||||||||
|
OTHER NON-CURRENT ASSETS:
|
||||||||
|
Restricted cash
|
10
|
15,010
|
||||||
|
Other non-current assets
|
-
|
1.980
|
||||||
|
Total other non-current assets
|
10
|
16,990
|
||||||
|
Total assets
|
$
|
193,730
|
$
|
740,067
|
||||
|
|
||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Long-term debt, net of deferred finance costs (Note 9)
|
$
|
16,811
|
$
|
3,566
|
||||
|
Accounts payable and other current liabilities
|
1,179
|
3,620
|
||||||
|
Accrued liabilities (Note 3)
|
3,709
|
4,600
|
||||||
|
Due to related parties (Note 3)
|
5,033
|
2,359
|
||||||
|
Deferred revenue
|
607
|
2,521
|
||||||
|
Total current liabilities
|
27,339
|
16,666
|
||||||
|
|
||||||||
|
|
||||||||
|
NON-CURRENT LIABILITIES:
|
||||||||
|
Long-term debt, net of deferred finance costs (Note 9)
|
-
|
33,943
|
||||||
|
Due to related parties (Note 3)
|
116,617
|
194,321
|
||||||
|
Total non-current liabilities
|
116,617
|
228,264
|
||||||
|
COMMITMENTS AND CONTINGENCIES (Note 13)
|
-
|
-
|
||||||
|
|
||||||||
|
STOCKHOLDERS' EQUITY:
|
||||||||
|
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2016 and June 30, 2017; 100,000,000 shares designated as Series A Convertible preferred stock; 100,000,000 shares designated as Series B Convertible preferred stock, 10,000 shares designated as Series C Convertible Preferred stock and 3,500,000 shares designated as Series D Preferred stock; 0 shares of Series A Convertible Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017; 0 shares of Series B Convertible Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017, 0 shares of Series C Convertible Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017, 29 shares (29,166 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of Series D Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017, 0 shares of Series E1 Convertible Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017 and 0 shares of Series E2 Convertible Preferred stock issued and outstanding at December 31, 2016 and June 30, 2017 (Note 11)
|
-
|
|||||||
|
Common stock, $0.01 par value; 1,000,000,000 shares authorized at December 31, 2016 and June 30, 2017; 4,711 (4,617,142 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) and 2,002,952 (14,020,669 before the 1-for-7 reverse stock split) shares issued and outstanding at December 31, 2016 and June 30, 2017, respectively (Note 11)
|
-
|
20
|
||||||
|
Treasury stock; $0.01 par value; 3 (3,009 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) shares at December 31, 2016 and June 30, 2017
|
-
|
-
|
||||||
|
Additional paid-in capital
|
3,360,124
|
3,836,819
|
||||||
|
Accumulated deficit
|
(3,310,350
|
)
|
(3,341,702
|
)
|
||||
|
Total DryShips Inc. stockholders' equity
|
49,774
|
495,137
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
193,730
|
$
|
740,067
|
||||
|
|
Six-month period ended
June 30,
|
|||||||
|
|
2016
|
2017
|
||||||
|
REVENUES:
|
||||||||
|
Voyage and time charter revenues (including amortization of above market acquired time charters)
|
30,198
|
28,189
|
||||||
|
Total Revenues (Note 15)
|
$
|
30,198
|
$
|
28,189
|
||||
|
|
||||||||
|
EXPENSES:
|
||||||||
|
Voyage expenses
|
3,998
|
6,629
|
||||||
|
Vessels operating expenses
|
27,513
|
23,234
|
||||||
|
Depreciation (Note 6)
|
1,723
|
3,102
|
||||||
|
Impairment loss, (gain)/loss from sale of vessel owning companies and other (Note 6 and 7)
|
45,945
|
300
|
||||||
|
General and administrative expenses (Note 3)
|
18,023
|
15,795
|
||||||
|
Other, net
|
(761
|
)
|
440
|
|||||
|
Operating loss
|
(66,243
|
)
|
(21,311
|
)
|
||||
|
|
||||||||
|
|
||||||||
|
OTHER INCOME / (EXPENSES):
|
||||||||
|
Interest and finance costs (Note 14)
|
(5,374
|
)
|
(5,742
|
)
|
||||
|
Interest income
|
28
|
1,033
|
||||||
|
Loss on interest rate swaps (Note 10)
|
(709
|
)
|
-
|
|||||
|
Other, net
|
(2,152
|
)
|
(311
|
)
|
||||
|
Total other expenses, net
|
(8,207
|
)
|
(5,020
|
)
|
||||
|
|
||||||||
|
LOSS BEFORE INCOME TAXES AND EARNINGS OF AFFILIATED COMPANIES
|
(74,450
|
)
|
(26,331
|
)
|
||||
|
Income taxes (Note 17)
|
(19
|
)
|
(20
|
)
|
||||
|
Equity in net losses of Ocean Rig (Note 8)
|
(41,454
|
)
|
-
|
|||||
|
|
||||||||
|
NET LOSS ATTRIBUTABLE TO DRYSHIPS INC.
|
$
|
(115,923
|
)
|
$
|
(26,351
|
)
|
||
|
|
||||||||
|
NET LOSS ATTRIBUTABLE TO DRYSHIPS INC. COMMON STOCKHOLDERS (Note 16)
|
(115,979
|
)
|
(26,351
|
)
|
||||
|
|
||||||||
|
LOSS PER COMMON SHARE ATTRIBUTABLE TO DRYSHIPS INC. COMMON STOCKHOLDERS BASIC AND DILUTED (Note 16)
|
$
|
(2,038,822.14
|
)
|
$
|
(108.25
|
)
|
||
|
|
||||||||
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES, BASIC AND DILUTED (Note 16)
|
57
|
243,433
|
||||||
|
Dividends declared per share (Note 11)
|
$
|
-
|
$
|
26.76
|
||||
|
|
||||||||
|
|
Six-month period ended
June 30, |
|||||||
|
|
2016
|
2017
|
||||||
|
- Net loss
|
$
|
(115,923
|
)
|
$
|
(26,351
|
)
|
||
|
Other comprehensive income:
|
||||||||
|
- Reclassification of realized losses associated with capitalized interest to the Unaudited Interim Condensed Consolidated Statement of Operations, net
|
110
|
-
|
||||||
|
Total other comprehensive income
|
$
|
110
|
$
|
-
|
||||
|
Total comprehensive loss
|
(115,813
|
)
|
(26,351
|
)
|
||||
|
|
Six-month period ended
June 30, |
|||||||
|
|
2016
|
2017
|
||||||
|
Net Cash Used in Operating Activities
|
$
|
(12,802
|
)
|
$
|
(39,032
|
)
|
||
|
|
||||||||
|
Cash Flows Provided by/(Used in) Investing Activities:
|
||||||||
|
Proceeds from sale of Ocean Rig shares
|
49,911
|
-
|
||||||
|
Sale of fixed assets
|
(12,760
|
)
|
-
|
|||||
|
Fixed assets additions
|
-
|
(435,006
|
)
|
|||||
|
Decrease/(Increase) in restricted cash
|
8,853
|
(14,650
|
)
|
|||||
|
Net Cash Provided by /(Used in) Investing Activities
|
46,004
|
(449,656
|
)
|
|||||
|
|
||||||||
|
Cash Flows Provided by/(Used in) Financing Activities :
|
||||||||
|
Proceeds from long-term debt
|
28,000
|
37,500
|
||||||
|
Principal payments and repayments of long-term debt
|
(66,128
|
)
|
(15,830
|
)
|
||||
|
Net proceeds from common stock issuance
|
-
|
504,419
|
||||||
|
Conversion of preferred shares
|
(15
|
)
|
-
|
|||||
|
Proceeds from preferred stock issuance
|
4,941
|
-
|
||||||
|
Dividends paid
|
-
|
(5,001
|
)
|
|||||
|
Payment of financing costs
|
-
|
(4,640
|
)
|
|||||
|
Net Cash Provided by/ (Used in) Financing Activities
|
(33,202
|
)
|
516,448
|
|||||
|
Net increase in cash and cash equivalents
|
-
|
27,760
|
||||||
|
|
||||||||
|
Cash and cash equivalents at beginning of the period
|
-
|
76,414
|
||||||
|
Cash and cash equivalents at end of the period
|
$
|
-
|
$
|
104,174
|
||||
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
|
Cash paid during the year for:
|
||||||||
|
Interest, net of amount capitalized
|
2,139
|
5,608
|
||||||
|
Non cash investing activities:
|
||||||||
|
Fixed assets additions
|
-
|
(79,000
|
)
|
|||||
|
Non cash financing activities:
|
||||||||
|
Exchange of Preferred Stock into loan
|
8,750
|
-
|
||||||
|
Loan drawdown for vessels additions
|
$
|
-
|
$
|
79,000
|
||||
|
|
December 31,
2016
|
June 30,
2017
|
||||||
|
Balance Sheet
|
||||||||
|
Due from related parties
|
$
|
6,674
|
$
|
20,315
|
||||
|
Accrued liabilities
|
(1,082
|
)
|
(831
|
)
|
||||
|
Due to related parties, current
|
(5,033
|
)
|
(2,359
|
)
|
||||
|
Due to related parties, non-current
|
$
|
(116,617
|
)
|
$
|
(194,321
|
)
|
||
|
Advances for vessels under construction and related costs
|
-
|
428
|
||||||
|
Vessels, net
|
$
|
-
|
$
|
308
|
||||
|
|
Six-month period ended
June 30,
|
|||||||
|
Statement of Operations
|
2016
|
2017
|
||||||
|
Voyage expenses
|
$
|
199
|
$
|
337
|
||||
|
General and administrative expenses
|
13,475
|
12,048
|
||||||
|
Commissions for assets acquired or sold
|
700
|
2,778
|
||||||
|
Interest and finance costs
|
818
|
$
|
6,827
|
|||||
|
|
December 31, 2016
|
June 30,
2017
|
||||||
|
Inventories
|
$
|
3,446
|
$
|
6,075
|
||||
|
Insurance claims (Note 13)
|
1,071
|
1,968
|
||||||
|
Other
|
29
|
1,084
|
||||||
|
|
$
|
4,546
|
$
|
9,127
|
||||
|
June 30,
|
||||
|
2017
|
||||
|
Balance, December 31, 2016
|
$
|
-
|
||
|
Advances for vessels under construction and related costs
|
60,824
|
|||
|
Balance, June 30, 2017
|
$
|
60,824
|
||
|
|
Cost
|
Accumulated
Depreciation
|
Net Book
Value
|
|||||||||
|
Balance, December 31, 2016
|
$
|
95,550
|
$
|
-
|
$
|
95,550
|
||||||
|
Additions
|
424,181
|
(1,468
|
)
|
422,713
|
||||||||
|
Depreciation
|
-
|
(1,634
|
)
|
(1,634
|
)
|
|||||||
|
Balance, June 30, 2017
|
$
|
519,731
|
$
|
(3,102
|
)
|
$
|
516,629
|
|||||
|
|
Amortization Schedule
|
|||||||
|
|
Balance
as of December 31, 2016 |
Amortization and write-offs as of June 30, 2017
|
||||||
|
Above-market acquired time charters
|
$
|
1,500
|
$
|
1,500
|
||||
|
|
December 31,
2016
|
June 30,
2017
|
||||||
|
Secured Credit Facilities - Drybulk Segment
|
16,935
|
667
|
||||||
|
Secured Credit Facilities – Gas Carrier Segment
|
-
|
37,500
|
||||||
|
Less: Deferred financing costs
|
(124
|
)
|
(658
|
)
|
||||
|
Total debt
|
16,811
|
37,509
|
||||||
|
Less: Current portion
|
(16,811
|
)
|
(3,566
|
)
|
||||
|
Long-term portion
|
$
|
-
|
$
|
33,943
|
||||
|
Due through June 30, 2018
|
$
|
3,711
|
||
|
Due through June 30, 2019
|
3,045
|
|||
|
Due through June 30, 2020
|
3,045
|
|||
|
Due through June 30, 2021
|
3,045
|
|||
|
Due through June 30, 2022
|
3,045
|
|||
|
Due through June 30, 2023
|
22,276
|
|||
|
Total principal payments
|
38,167
|
|||
|
Less: Deferred financing costs
|
(658
|
)
|
||
|
Total debt
|
$
|
37,509
|
|
|
|
Amount of Loss
|
|||||||
|
|
|
Six-month period ended June 30,
|
|||||||
|
Derivatives not designated as hedging instruments
|
Location of Loss Recognized
|
2016
|
2017
|
||||||
|
Interest rate swaps
|
Loss on interest rate swaps
|
$
|
(709
|
)
|
$
|
-
|
|||
|
Total
|
|
$
|
(709
|
)
|
$
|
-
|
|||
|
|
Number of
non-vested shares
|
Weighted average grant
date fair value per
non-vested shares
|
||||||
|
Balance December 31, 2016
|
0 (225 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits)
|
$
|
51,187,908.8
|
|||||
|
Granted
|
-
|
-
|
||||||
|
Vested
|
-
|
-
|
||||||
|
Balance June 30, 2017
|
0
|
$
|
51,187,908.8
|
|||||
|
Obligations:
|
Total
|
1st year
|
||||||
|
Vessels shipbuilding contracts and acquisitions
|
$
|
258,270
|
258,270
|
|||||
|
Total obligations
|
$
|
258,270
|
258,270
|
|||||
|
|
Six-month period ended
June 30,
|
|||||||
|
|
2016
|
2017
|
||||||
|
|
||||||||
|
Interest incurred on long-term debt
|
$
|
3,751
|
$
|
224
|
||||
|
Interest, amortization of financing fees and other on loan from related party
|
818
|
6,827
|
||||||
|
Amortization and write off of financing fees
|
517
|
127
|
||||||
|
Other
|
288
|
126
|
||||||
|
Capitalized interest cost
|
-
|
(1,562
|
)
|
|||||
|
Total
|
$
|
5,374
|
$
|
5,742
|
||||
|
|
Drybulk Segment
|
Offshore support Segment
|
Tanker Segment
|
Gas Carrier Segment
|
Drilling Segment
|
Total
|
||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Six-month
period ended June 30, |
Six-month
period ended June 30, |
Six-month
period ended June 30, |
Six-month
period ended June 30, |
Six-month
period ended June 30, |
Six-month
period ended June 30, |
||||||||||||||||||||||||||||||||||||||||||
|
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
2016
|
2017
|
||||||||||||||||||||||||||||||||||||
|
Revenues from external customers
|
$
|
15,223
|
$
|
20,714
|
$
|
14,930
|
3,819
|
$
|
45
|
$
|
3,606
|
$
|
-
|
$
|
50
|
$
|
-
|
$
|
-
|
$
|
30,198
|
$
|
28,189
|
|||||||||||||||||||||||||
|
Income tax expense
|
-
|
-
|
(19
|
)
|
(20
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
(19
|
)
|
(20
|
)
|
||||||||||||||||||||||||||||||||
|
Net loss
|
(64,963
|
)
|
(15,401
|
)
|
(8,391
|
)
|
(7,340
|
)
|
(1,115
|
)
|
(2,847
|
)
|
-
|
(763
|
)
|
(41,454
|
)
|
-
|
(115,923
|
)
|
(26,351
|
)
|
||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
December 31,
2016 |
June 30,
2017 |
December 31,
2016 |
June 30,
2017 |
December 31,
2016 |
June 30,
2017 |
December 31,
2016 |
June 30,
2017 |
December 31,
2016 |
June 30,
2017 |
December 31,
2016 |
June 30,
2017 |
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
$
|
162,532
|
$
|
373,742
|
$
|
31,191
|
$
|
34,200
|
$
|
7
|
$
|
202,410
|
-
|
129,715
|
-
|
-
|
$
|
193,730
|
$
|
740,067
|
||||||||||||||||||||||||||||
|
|
Six-month period ended June 30,
|
|
||||||||||||||||||||||
|
|
2016
|
|
2017
|
|
||||||||||||||||||||
|
|
Loss
(numerator)
|
|
Weighted-average
number of
outstanding shares
(denominator)
|
|
Amount
per share
|
|
Loss
(numerator)
|
|
Weighted-average
number of
outstanding shares
(denominator)
|
|
Amount
per share
|
|
||||||||||||
|
Net loss attributable to DryShips Inc
|
|
|
(115,923
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(26,351)
|
|
|
|
-
|
|
|
|
-
|
|
|
Less: Series C Convertible Preferred Stock dividends
|
|
|
(56
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Basic and diluted LPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss attributable to common stockholders
|
|
$
|
(115,979
|
)
|
|
|
57
|
|
|
$
|
(2,038,822.14)
|
|
|
$
|
(26,351)
|
|
|
|
243,433
|
|
|
$
|
(108.25)
|
|
Document and Entity Information |
6 Months Ended |
|---|---|
|
Jun. 30, 2017
shares
| |
| Document and Entity Information [Abstract] | |
| Document Type | 6-K |
| Document Period End Date | Jun. 30, 2017 |
| Amendment Flag | false |
| Entity Registrant Name | Dryships Inc. |
| Entity Central Index Key | 0001308858 |
| Entity Current Reporting Status | Yes |
| Entity Voluntary Filers | No |
| Current Fiscal Year End Date | --12-31 |
| Entity Filer Category | Non-accelerated Filer |
| Entity Well Known Seasoned Issuer | No |
| Entity Common Stock Shares Outstanding | 2,002,952 |
| Document Fiscal Year Focus | 2017 |
| Document Fiscal Period Focus | Q2 |
| Trading Symbol | Drys |
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Consolidated Statements of Comprehensive Loss | ||
| Net loss | $ (26,351) | $ (115,923) |
| Other comprehensive income: | ||
| Reclassification of realized losses associated with capitalized interest to the Unaudited Interim Condensed Consolidated Statement of Operations, net | 0 | 110 |
| Total other comprehensive income | 0 | 110 |
| Total comprehensive loss | $ (26,351) | $ (115,813) |
Basis of Presentation and General Information |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Basis of Presentation and General Information | |
| Basis of Presentation and General Information: | 1. Basis of Presentation and General Information:
The accompanying unaudited interim condensed consolidated financial statements include the accounts of DryShips Inc. and its subsidiaries (collectively, the "Company" or "DryShips"). DryShips was formed on September 9, 2004, under the laws of the Republic of the Marshall Islands. The Company is a diversified owner of ocean going cargo vessels.
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") required by U.S. GAAP for complete financial statements. These statements and the accompanying notes should be read in conjunction with the Company's Annual Report on Form 20-F for the fiscal year ended December 31, 2016, filed with the SEC on March 13, 2017.
These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and include the accounts and operating results of Dryships, its wholly-owned subsidiaries and its affiliate.
From June 8, 2015 (the date of its deconsolidation) through April 4, 2016, Ocean Rig UDW Inc. (“Ocean Rig”) was considered as an affiliated entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig was accounted for under the equity method and its assets and liabilities were not consolidated in the Company's balance sheet. On April 5, 2016, the Company sold all of its common shares in Ocean Rig, to a subsidiary of Ocean Rig and as of this date, the Company no longer holds any equity interest in Ocean Rig. Accordingly, additional disclosures for Ocean Rig have not been included, in the accompanying interim condensed consolidated financial statements.
Certain prior period amounts have been reclassified to conform to the current year presentation including reclassifications between voyage revenues and impairment loss. (Note 7)
In the opinion of management, these unaudited interim condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the periods presented. Operating results for the six-month period ended June 30, 2017, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2017.
On March 11, 2016, the Company effected a 1-for-25 reverse stock split of its issued common stock. In connection with the reverse stock split seven fractional shares were cashed out. Furthermore, on August 15, 2016, the Company effected a 1-for-4 reverse stock split of its issued common stock. In connection with the reverse stock split five fractional shares were cashed out. On November 1, 2016, the Company effected a 1-for-15 reverse stock split of its issued common stock. In connection with the reverse stock split nine fractional shares were cashed out. On January 23, 2017, the Company effected a 1-for-8 reverse stock split of its issued common stock. In connection with the reverse stock split four fractional shares were cashed out. On April 11, 2017, the Company effected a 1-for-4 reverse stock split of its issued common stock. In connection with the reverse stock split two fractional shares were cashed out. On May 11, 2017, the Company effected a 1-for-7 reverse stock split of its issued common stock. In connection with the reverse stock split three fractional shares were cashed out. On June 22, 2017, the Company effected a 1-for-5 reverse stock split of its issued common stock. In connection with the reverse stock split two fractional shares were cashed out. Finally on July 21, 2017, the Company effected a 1-for-7 reverse stock split of its issued common stock. In connection with the reverse stock split two fractional shares were cashed out. All share and per share amounts disclosed in the consolidated financial statements and notes give effect to these reverse stock splits retroactively, for all periods presented.
|
Significant Accounting Policies |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Significant Accounting Policies [Abstract] | |
| Significant Accounting Policies: | 2. Significant Accounting Policies:
A discussion of the Company's significant accounting policies can be found in the Company's consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2016, filed with the SEC on March 13, 2017 (the "Consolidated Financial Statements for the year ended December 31, 2016"). There have been no material changes to these policies in the six-month period ended June 30, 2017, other than that the Company, entered into two additional reportable segments by entering the tanker market through the acquisition of four tanker vessels (Note 6), the gas carrier market through the acquisition of four VLGCs (Note 5 and 6) and the adoption of the accounting standard update discussed below.
Recent Accounting pronouncements:
In January 2017, FASB issued ASU No. 2017-03 “Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323).” The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to our Consolidate Financial Statement was from the September 2016 meeting, where the SEC staff expressed its expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with SAB Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The adoption of this new accounting guidance did not have a material effect on the Company's Consolidated Financial Statements.
In May 2017, the FASB issued ASU 2017-09, "Compensation — Stock Compensation (Topic 718), Scope of Modification Accounting" ("ASU 2017-09"), which clarifies and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for annual periods, including interim periods within those annual periods, beginning after 15 December 2017, however early adoption is permitted. The Company is in the process of assessing the impact of the amendment of this Update on the Company's consolidated financial position and performance.
In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, clarifying the method used to determine the timing and requirements for revenue recognition on the statements of income. Under the new standard, an entity must identify the performance obligations in a contract, the transaction price and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts. In August 2015, FASB issued Accounting Standard Update No. 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 for all entities by one year. The standard will be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein. The Company will adopt the standard as of January 1, 2018 and is expecting that the adoption of ASU 2014-09 may result in a change in the method of recognizing revenue for voyage charters, whereby the Company's method of determining proportional performance might change from discharge-to-discharge to load-to-discharge. This will result in no revenue being recognized from discharge of the prior voyage to loading of the current voyage and all revenue being recognized from loading of the current voyage to discharge of the current voyage. This change will result in revenue being recognized later in the voyage which may cause additional volatility in revenue and earnings between periods. The Company is in the process of validating aspects of ASU 2014-09, quantifying the effect that the adoption of the ASU 2014-09 will have on its financial statements, determining the transitional impact and completing other items required for the adoption of ASU 2014-09.
|
Transactions with Related Parties |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Transactions with Related Parties: | 3. Transactions with Related Parties:
The amounts included in the accompanying consolidated balance sheets and unaudited interim condensed consolidated statements of operations are as follows:
(Per day and per quarter information in the note below is expressed in United States Dollars/Euros)
TMS Bulkers Ltd.- TMS Offshore Services Ltd. - TMS Tankers Ltd.- TMS Cardiff Gas Ltd. : Effective January 1, 2017, the Company, entered into a new agreement (the “New TMS Agreement”) with TMS Bulkers Ltd. (“TMS Bulkers”) and TMS Offshore Services Ltd. (“TMS Offshore Services”) (together “the Managers”), to streamline the services offered by TMS Bulkers under the management agreements with each of the Company's drybulk vessel-owning subsidiaries and by TMS Offshore Services, pursuant to the respective management agreements with the Company's offshore support vessel-owning subsidiaries. The Managers may be deemed to be beneficially owned by Mr. George Economou, the Company's Chairman and Chief Executive Officer.
In connection with the New TMS Agreement that entails an increased scope of services, including executive management, commercial, accounting, reporting, financing, legal, manning, catering, IT, attendance, insurance, technical and operations services, the Company terminated the consulting agreements with Fabiana Services S.A. (“Fabiana”), Vivid Finance Limited (“Vivid”) and Basset Holdings Inc. (“Basset”), entities controlled by the Company's Chairman and Chief Executive Officer Mr. George Economou and President and Chief Financial Officer Mr. Anthony Kandylidis, effective as of December 31, 2016. The all-in base cost for providing the increased scope of services was reduced to $1,643/day per vessel which is a 33% reduction from prior levels, based on a minimum of 20 vessels, decreasing thereafter to $1,500/day per vessel. The New TMS Agreement entitles the Managers to an aggregate performance bonus for 2016 amounting to $6,000, as well as a one-time setup fee of $2,000. Under the respective agreement, the Managers are also entitled to (i) a discretionary performance fee, (ii) a commission of 1.25% on charter hire agreements that are arranged by the Managers; and (iii) a commission of 1% of the purchase price on sales or purchases of vessels in the Company's fleet that are arranged by the Managers, (iv) a financing and advisory commission of 0.50% and (v) reimbursement of out of pocket and travel expenses. The New TMS Agreement has a term of ten years.
Under both the New TMS Agreement and the agreements effective up to December 31, 2016, if the Managers are requested to supervise the construction of a newbuilding vessel, in lieu of the management fee, the Company will pay the Managers an upfront fee equal to 10% of the budgeted supervision cost. For any additional attendance above the budgeted superintendent expenses, the Company will be charged extra at a standard rate of Euro 500 (or $572 based on the Euro/U.S. Dollar exchange rate at June 30, 2017) per day.
In the event that the management agreements are terminated for any reason other than a default by TMS Bulkers and TMS Offshore or change of control of the vessel owning companies' ownership, the Company is required to pay the management fee for a further period of three calendar months as from the date of termination. During the six-month periods ended June 30, 2016 and 2017, the Company did not incur any such charges.
In the event of a change of control of the vessel owning companies' ownership, the Company is required to pay TMS Bulkers/TMS Offshore a termination payment, representing an amount equal to the estimated remaining fees payable to TMS Bulkers/TMS Offshore under the term of the agreement which such payment shall not be less than the fees for a period of 36 months and not more than a period of 48 months.
Transactions with TMS Bulkers/TMS Offshore in Euros are settled on the basis of the average U.S. Dollar rate on the invoice date.
The Company also entered into new agreements with TMS Cardiff Gas Ltd. (“TMS Cardiff Gas”) and TMS Tankers Ltd. (“TMS Tankers”) regarding its newly acquired tanker and gas carrier vessels on similar terms as the New TMS Agreement with the Managers. (Note 5) TMS Cardiff Gas and TMS Tankers may be deemed to be beneficially owned by Mr. George Economou, the Company's Chairman and Chief Executive Officer.
According to the agreements effective up to December 31, 2016, TMS Bulkers provided comprehensive drybulk ship management services, including technical supervision, such as repairs, maintenance and inspections, safety and quality, crewing and training as well as supply provisioning. TMS Bulkers' commercial management services included operations, chartering, sale and purchase, post-fixture administration, accounting, freight invoicing and insurance. Each vessel management agreement provided for a fixed management fee, of Euro 1,500 ($1,716 based on the Euro/U.S. Dollar exchange rate at June 30, 2017) per vessel per day, which was payable in equal monthly installments in advance and could be adjusted each year to the Greek Consumer Price Index for the previous year by not less than 3% and not more than 5%. Effective January 1, 2012, the fixed management fee was adjusted by 3% to Euro 1,545 ($1,767 based on the Euro/U.S. Dollar exchange rate at June 30, 2017). Effective January 1, 2015, the fixed management fee was adjusted by 3% to Euro 1,591 ($1,821 based on the Euro/U.S. Dollar exchange rate at June 30, 2017). Effective January 1, 2016, the fixed management fee was adjusted by 3% to Euro 1,639 ($1,876 based on the Euro/U.S. Dollar exchange rate at June 30, 2017).
Under the respective agreements, TMS Bulkers was also entitled to (i) a discretionary incentive fee, (ii) a commission of 1.25% on charter hire agreements that were arranged by TMS Bulkers; (iii) a commission of 1% of the purchase price on sales or purchases of vessels in the Company's fleet that were arranged by TMS Bulkers and (iv) reimbursement of associated legal expenses.
Each management agreement had an initial term of five years and was automatically renewed for a five-year period and thereafter extended in five-year increments, unless the Company provided notice of termination in the fourth quarter of the year immediately preceding the end of the respective term.
According to the agreements effective up to December 31, 2016 TMS Offshore Services provided overall technical and crew management to the Company's Platform Supply and Oil Spill Recovery vessels. Under the management agreements, TMS Offshore was entitled to a daily management fee per vessel of Euro 1,061 ($1,214 based on the Euro/U.S. Dollar exchange rate at June 30, 2017), payable in equal monthly installments in advance and could automatically be adjusted each year to the Greek Consumer Price Index for the previous year by not less than 3% and not more than 5%.
Cardiff Marine Inc: On January 2, 2014, the Company entered into an agreement with certain clients of Cardiff Marine Inc., a company controlled by Mr. George Economou, the Company's Chairman and Chief Executive Officer, for the grant of seven rights of first refusal to acquire seven Newcastlemax newbuildings, should they wish to sell these vessels at some point in the future. The Company could exercise any one, several or all of the rights. Each right was valid until one day before the contractual date of delivery of each vessel. The newbuildings were delivered during 2017, and none of the seven rights was exercised by the Company.
Cardiff Tankers Inc. - Cardiff Gas Ltd : Under certain charter agreements for the Company's tankers and gas carrier vessels, Cardiff Tankers Inc. ("Cardiff Tankers") and Cardiff Gas Ltd (“Cardiff Gas”), two related party entities incorporated in the Republic of the Marshall Islands, provide services related to the sourcing, negotiation and execution of charters, for which they are entitled to a 1.25% commission on charter hire earned by those vessels.
George Economou: As the Company's Chairman, Chief Executive Officer and principal shareholder and taking into consideration his 100% ownership as of June 30, 2017, through his control over Sifnos Shareholders Inc., of the Company's 29 shares (29,166 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of Series D Preferred Stock which have 100,000 votes per share and shall not be convertible into common shares of the Company, Mr. George Economou has control over the actions of the Company.
Other: On February 15, 2016, the Company announced that the sale of the vessel owning companies of its Capesize vessels, Fakarava, Rangiroa and Negonego to entities controlled by its Chairman and Chief Executive officer Mr. George Economou had failed and on March 24, 2016, entered into new sales agreement with entities controlled by Mr. George Economou, for the sale of the shares in the above vessel owning companies. (Note 6)
On September 16, 2016 and October 26, 2016, the Company also entered into sales agreements with entities controlled by Mr. George Economou for the sale of the shares of the owning companies of the Panamax vessels Oregon, Amalfi and Samatan, respectively. (Note 6)
On January 12, 2017, the Company entered into a "zero cost" Option Agreement ("the LPG Option Agreement"), with companies controlled by Mr. George Economou, the Company's Chairman and Chief Executive Officer, for the purchase of the shares of four owning companies of four high specifications Very Large Gas Carriers ("VLGCs") capable of carrying liquefied petroleum gas ("LPG") that were under construction at Hyundai Samho Heavy Industries Co., Ltd., ("HHI") and have long-term time charter employment agreements with major oil companies and oil traders. Under the terms of the LPG Option Agreement, the Company had until April 4, 2017, to exercise four separate options to purchase up to the four VLGCs at a price of $83,500 per vessel. The transaction was approved by the independent directors of the Company's board of directors based on third party broker valuations. On January 19, 2017 and March 10, 2017, the Company exercised the first two options and acquired two of the VLGCs under construction (Note 5 and Note 6), and on April 6, 2017, exercised the remaining two options and acquired the two remaining VLGCs under construction. (Note 5)
On April 3, 2017, and in connection with the acquisition of the four VLGCs under construction, the Company acquired 100% of the shares of Cardiff LNG Ships Ltd. and Cardiff LPG Ships Ltd. without any cost or payment from entities affiliated with Mr. George Economou, the Company's Chairman and Chief Executive Officer.
On May 15, 2017, the Company also entered into a purchase agreement with an entity affiliated with Mr. George Economou for the purchase of the shares of the owning company of the Suezmax newbuilding vessel Samsara. The transaction was approved by the audit committee of the Company's Board of Directors taking into account independent third-party broker charter free valuations certificates and the long-term employment on a fixed rate basis plus profit share, provided by the seller. The vessel was time chartered back to the seller and employed from May 24, 2017 under a five year time charter plus optional periods in charterer's option at a base rate plus profit share. The charterer was also granted purchase options at the end of each firm period. (Note 6)
Fabiana Services S.A.: On October 22, 2008, the Company entered into a consultancy agreement with Fabiana, a Marshall Islands entity beneficially owned by the Company's Chairman and Chief Executive Officer, Mr. George Economou, with an effective date from February 3, 2008, as amended. Under the agreement, Fabiana provided the services of the Company's Chief Executive Officer. The term of the agreement has been amended for a period of five years commencing on February 3, 2013, unless terminated earlier in accordance with the agreement. Pursuant to the agreement, the Company was obliged to pay an annual remuneration to Fabiana. Fabiana was also entitled to cash or equity-based bonuses to be awarded at the Company's sole discretion. In addition, Fabiana could terminate the agreement for good reason and in such event the Company will be obliged to pay a lump sum amount. Effective December 31, 2016, the consultancy agreement with Fabiana was terminated at no cost by mutual agreement of the parties.
Basset Holdings Inc.: Under the consultancy agreement effective from January 1, 2015, between the Company and Basset, a related party entity incorporated in the Republic of Marshall Islands, Basset provided consultancy services relating to the services of Mr. Anthony Kandylidis in his capacity as Executive Vice President, and since December 2016 President and Chief Financial Officer of the Company. The agreement had an initial term of five years and could be renewed or extended for one-year successive terms with the consent of both parties. Under the terms of the agreement, the Company was obliged to pay an annual remuneration to Basset. Basset was also entitled to cash or equity-based bonuses to be awarded at the Company's sole discretion. The Company could terminate the agreement for cause, as defined in the agreement, in which case Basset would not be entitled to further payments of any kind. Upon termination of the agreement without cause, as defined in the agreement, the Company would be obliged to pay a lump sum amount. Basset could terminate the agreement without cause upon three months written notice. In addition, Basset could terminate the agreement for good reason and in such event, the Company was obliged to pay a lump sum amount. Effective December 31, 2016, the consultancy agreement with Basset was terminated at no cost by mutual agreement of the parties.
Vivid Finance Limited: Under the consultancy agreement effective from September 1, 2010, between the Company and Vivid, a company controlled by Mr. George Economou, the Company's Chairman and Chief Executive Officer, Vivid provided the Company with financing-related services such as (i) negotiating and arranging new loan and credit facilities, interest rate swap agreements, foreign currency contracts and forward exchange contracts, (ii) renegotiating existing loan facilities and other debt instruments, and (iii) the raising of equity or debt in the capital markets. In exchange for its services, Vivid was entitled to a fee equal to 0.20% on the total transaction amount. The consultancy agreement had a term of five years and could be terminated (i) at the end of its term unless extended by mutual agreement of the parties; or (ii) at any time by the mutual agreement of the parties. Effective January 1, 2013, the Company amended its agreement with Vivid to limit the scope of the services provided under the agreement to DryShips and its subsidiaries or affiliates, except for Ocean Rig and its subsidiaries. In essence, post-amendment, the consultancy agreement between the Company and Vivid was in effect for the Company's drybulk and offshore support shipping segments only. Effective December 31, 2016, the consultancy agreement with Vivid was terminated at no cost by mutual agreement of the parties.
Ocean Rig UDW Inc.: On March 29, 2016, the Company entered into 60 day time charter agreements for the offshore support vessels Crescendo and Jubilee with a subsidiary of Ocean Rig, to assist with the stacking of Ocean Rig's drilling units in Las Palmas.
On April 5, 2016, the Company sold all of its shares in Ocean Rig, to a subsidiary of Ocean Rig for total cash consideration of approximately $49,911. The sale proceeds were used to partly reduce the outstanding amount under the Revolving Credit Facility provided to the Company by Sifnos Shareholders Inc. (“Sifnos”) an entity controlled by the Company's Chairman and Chief Executive Officer, Mr. George Economou and for general corporate purposes. In addition, the Company reached an agreement under the Revolving Credit Facility with Sifnos whereby the lender agreed to, among other things release its lien over the Ocean Rig shares. This transaction was approved by the disinterested members of the Company's Board of Directors on the basis of a fairness opinion. As of April 5, 2016, the Company no longer holds any equity interest in Ocean Rig.
Sifnos Shareholders Inc. - Sierra Investments Inc.: On October 21, 2015, as amended on November 11, 2015, the Company entered into a secured revolving credit facility (''Revolving Credit Facility'') of up to $60,000 with Sifnos an entity controlled by Mr. George Economou, the Company's Chairman and Chief Executive Officer, for general working capital purposes. The Revolving Credit Facility was secured by the shares that the Company held in Nautilus Offshore Services Inc. and by a first priority mortgage over one Panamax drybulk carrier. The Revolving Credit Facility had a tenor of three years. Under this agreement, the lender had the right to convert a portion of the outstanding Revolving Credit Facility into shares of the Company's common stock or into shares of common stock of Ocean Rig held by the Company. The conversion would be based on the volume weighted average price of either stock plus a premium. Furthermore, the Company, as the borrower under this agreement, had the right to convert $10,000 of the outstanding Revolving Credit Facility into 8 preferred shares (8,333 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of the Company. On October 21, 2015 and December 22, 2015, the Company drew down the amounts of $20,000 and $10,000, respectively under the Revolving Credit Facility.
On December 30, 2015, the Company exercised its right to convert $10,000 of the outstanding principal amount of the Revolving Credit Facility into 8 shares (8,333 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of Series B Convertible Preferred Stock of the Company. Each share of Series B Convertible Preferred Stock had the right to vote with the common shares on all matters on which the common shares were entitled to vote as a single class and the shares of Series B Convertible Preferred Stock had five votes per share. The shares of Series B Convertible Preferred Stock were to be mandatorily converted into common shares of the Company on a one to one basis within three months after the issuance thereof or any earlier date selected by the Company in its sole discretion.
On March 24, 2016, the Company entered into an agreement to increase the Revolving Credit Facility. The Revolving Credit Facility was amended to increase the maximum available amount by $10,000 to $70,000, to give the Company an option to extend the maturity of the facility by 12 months to October 21, 2019 and to cancel the option of the lender to convert the outstanding Revolving Credit Facility to the Company's common stock.
Additionally, subject to the lender's prior written consent, the Company had the right to convert $8,750 of the outstanding balance of the Revolving Credit Facility into 29 preferred shares (29,166 preferred shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of the Company, with a voting power of 5:1 (vis-à-vis common stock) and would mandatorily convert into common stock on a 1:1 basis within 3 months after such conversion. As part of the transaction the Company also entered into a Preferred Stock Exchange Agreement to exchange the 8 Series B Convertible Preferred Shares (8,333 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) held by the lender for $8,750. The Company subsequently cancelled the Series B Convertible Preferred Stock previously held by the lender, effective March 24, 2016.
On March 29, 2016, the Company drew down the amount of $28,000 under the revolving credit facility.
On April 5, 2016, the Company sold all of its common shares in Ocean Rig, to a subsidiary of Ocean Rig for total cash consideration of approximately $49,911 and used $45,000 from the proceeds, to partly reduce the outstanding amount under the Revolving Credit Facility. In addition, the Company reached an agreement under the Revolving Credit Facility whereby the lender agreed to, among other things (i) release its lien over the Ocean Rig shares and, (ii) waive any events of default, subject to a similar agreement being reached with the rest of the lenders to the Company, in exchange for a 40% loan to value maximum loan limit, being introduced under this facility. In addition, the interest rate under the loan was reduced to 4% plus LIBOR.
On September 9, 2016, the Company entered into an agreement to convert $8,750 of the outstanding balance of the Revolving Credit Facility into 29 Series D Preferred Shares (29,166 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of the Company. Each preferred share has 100,000 votes and shall not be convertible into common stock of the Company. Also on September 21, 2016, the Company drew down the amount of $7,825 under the Revolving Credit Facility.
On October 31, 2016, the Company sold the shares of the owning companies of three Panamax vessels the Amalfi, Galveston and Samatan (Note 6), and as part of the transaction, entered into an agreement to increase the Revolving Credit Facility with Sifnos. The Revolving Credit Facility was amended to increase the maximum available amount by $5,000 to $75,000 and to give the Company an option within 365 days to convert $7,500 of the outstanding loan into the Company's common shares. As part of the sale of the vessel owning companies, the Company paid the amount of $58,619 to the new owners, being the difference between the purchase price and the outstanding balance of the respective debt facility, by increasing the same amount the outstanding balance of the Revolving Credit Facility. Therefore, following the above transaction, the outstanding principal amount under the Revolving Credit Facility was $69,444. This transaction was approved by the independent members of the Company's Board of Directors on the basis of vessel valuations and a fairness opinion.
On November 30, 2016, Sifnos became the lender of record under two Syndicated Loans previously arranged by HSH Nordbank, with an outstanding balance of an aggregate of $85,066 under the ex-HSH syndicated facilities.
On December 15, 2016, the Company made a prepayment of $33,510 under the Revolving Credit Facility.
On December 30, 2016, the Company entered into a New Senior Secured Revolving Facility ("New Revolving Facility") with Sifnos for the refinancing of the majority of its outstanding debt. Under the terms of the New Revolving Facility, Sifnos extended a new loan of up to $200,000 that was secured by all of the Company's present and future assets except for the vessel Raraka. The New Revolving Facility carried an interest rate of Libor plus 5.5%, was non-amortizing, had a tenor of 3 years, had no financial covenants, was arranged with a fee of 2.0% and had a commitment fee of 1.0%. In addition, Sifnos had the ability to participate in realized asset value increases of the collateral base in a fixed percentage of 30%. The transaction was approved by the Company's independent members of the board and a fairness opinion was obtained in connection with this transaction.
On January 19, 2017, and March 10, 2017, the Company acquired two VLGCs under construction and on April 6, 2017, acquired the two remaining VLGCs pursuant to the LPG Option Agreement and partially financed the closing price of the acquisition of the vessel-owning entities of the four vessels by using the then remaining undrawn liquidity of $79,000, under the New Revolving Facility.
On May 23, 2017, the Company was released by all of its obligations and liabilities under the December 30, 2016 New Revolving Facility, through a Notice of Release from Sifnos, and entered into an unsecured Revolving Facility Agreement ("Revolving Facility") with Sierra Investments Inc. (“Sierra”) and a separate Participation Rights Agreement with Mountain Investments Inc. (“Mountain”), both entities controlled by Mr. George Economou, the Company's Chairman and Chief Executive Officer. The Revolving Facility carries an interest rate of Libor plus 6.5%, is non-amortizing, has a tenor of 5 years, has no financial covenants and was arranged with a fee of 1.0%. In addition, Mountain has the ability to participate in realized asset value increases of the Company's all present and future assets, except the vessel Samsara, in a fixed percentage of 30% in case of their sale and has a duration of up to the maturity of the Sierra Revolving Facility Agreement. The transaction was approved by the Company's independent members of the board and a fairness opinion was obtained in connection with this transaction.
Further to the above, the outstanding balance under the above facilities as of December 31, 2016 and June 30, 2017 was $121,000, and $200,000, while the respective unamortized deferred finance costs amounted to $4,383, and $5,679, respectively.
The aggregate available undrawn amount under the above outstanding facilities at December 31, 2016 and June 30, 2017, was $79,000 and $0, respectively.
The weighted-average interest rates on the above facilities were 8.02% and 7.99% for the six-month period ended June 30, 2016 and 2017, respectively.
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Other Current assets |
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| Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Current Assets: | 4. Other Current Assets:
The amount of other current assets shown in the accompanying consolidated balance sheets is analyzed as follows:
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Advances for Vessels under Construction and Acquisitions |
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| Advances for Vessels under Construction and Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||
| Advances for Vessels under Construction and Acquisitions: | 5. Advances for Vessels under Construction and Acquisitions:
The movement of the advances for vessels under construction and acquisitions during the six-month period ended June 30, 2017, is set forth below:
On March 10, 2017, the Company acquired one VLGC under construction at HHI, pursuant to the exercise of the respective option as per the LPG Option Agreement (Note 3), for a purchase price of $83,500. During the six-month period ended June 30, 2017, the Company paid an amount of $21,850 of the total purchase price , by using part of the undrawn liquidity under the New Revolving Facility (Note 3). An amount of $6,500 of the total amount paid, representing the value of the time charter attached acquired, was classified in “Additional Paid-in Capital”, under the respective “Accounting for transactions under common control”. The $61,650 balance of the purchase price for the VLGC is payable in installments until the vessel's delivery from HHI. The Company expects to take delivery of the vessel in September 2017.
On March 24, 2017, the Company concluded Memoranda of Agreement with unaffiliated third parties for the acquisition of three modern, second-hand Newcastlemax drybulk vessels, the Morandi, Bacon and Judd for a total purchase price of $89,790 two of which have long-term time charter employment. The Company took delivery of the vessels on July 5, 2017, July 6, 2017 and July 13, 2017, respectively. On March 29, 2017, the Company paid an aggregate $13,469, representing advance payments of 15%, in accordance with the related clauses of the Memoranda of Agreement.
On April 6, 2017, the Company acquired two VLGCs under construction at HHI, pursuant to the exercise of the respective options as per the LPG Option Agreement (Note 3), for a purchase price of $83,500 each. During the six-month period, the Company paid an amount of $46,700 of the total purchase price, by using part of the undrawn liquidity under the New Revolving Facility (Note 3) and cash on hand. An amount of $16,001 of the total amount paid, representing the value of the time charter attached acquired, was classified in “Additional Paid-in Capital”, under the respective “Accounting for transactions under common control”. The $120,300 balance of the purchase price for the VLGCs is payable in installments until the vessels' delivery from HHI. The Company expects to take delivery of the vessels in October 2017 and December 2017, respectively.
During the six-month period ended June 30, 2017, an amount of $429, relating to capitalized expenses and $877 relating to capitalized interest, are included in the “Advances for vessels under construction and related costs”.
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Vessels, net |
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| Vessels, Drilling Units, Machinery and Equipment: | 6. Vessels, net:
The amounts in the accompanying consolidated balance sheets are analyzed as follows:
On September 9, 2015, the Company entered into sales agreements with entities controlled by Mr. George Economou, the Company's Chairman and Chief Executive officer, for the sale of the vessel owning companies of the Capesize vessels Fakarava, Rangiroa and Negonego,. On February 15, 2016, the Company announced that the sale of the vessel owning companies of its Capesize vessels, Fakarava, Rangiroa and Negonego to entities controlled by its Chairman and Chief Executive Officer Mr. George Economou had failed. In addition, the Company reached a settlement agreement with the charterer of these vessels for an upfront lumpsum payment and the conversion of the daily rates to index-linked time charters. On March 24, 2016, the Company concluded a new sales agreement with entities controlled by Mr. George Economou, for the sale of the shares of the vessel owning companies of its Capesize vessels (Fakarava, Rangiroa and Negonego) for an aggregate price of $70,000, including their existing employment agreements and the assumption of the debt associated with the vessels with an outstanding balance of $102,070 at March 24, 2016. On March 30, 2016, the Company received the lender's consent for the sale of the shares of the vessels' owning companies and made a prepayment of $15,000, under the respective loan agreement dated February 14, 2012. As part of the transaction the Company also paid the amount of $12,060, being the difference between the purchase price and the outstanding balance of the respective debt facility, to the new owners. On March 31, 2016, the shares of the vessel owning companies were delivered to their new owners. In this respect, a charge of $23,018, was recognized and included in "Impairment loss, gain/loss from sale of vessel owning companies and other", in the accompanying unaudited interim condensed consolidated statement of operations for the three-month period ended March 31, 2016.
On August 22, 2016, the Company concluded a Memorandum of Agreement with an unaffiliated third-party, to sell its Panamax vessel, Coronado, for a gross price of $4,250. The vessel was delivered to its new owner on September 9, 2016.
On September 16, 2016, the Company entered into a sale agreement with an entity controlled by Mr. George Economou, the Company's Chairman and Chief Executive officer, for the sale of the shares of the owning company of the Panamax vessel Oregon, including the associated bank debt, for a gross price of $4,675. As part of the transaction the Company also paid the amount of $7,825 to the new owners, being the difference between the purchase price and the outstanding balance of the respective debt facility. The Company drew down the respective amount under its Revolving Credit Facility (Note 3). The shares of the vessel owning company were delivered to the new owner on September 21, 2016. Due to the controlling interests of Mr. George Economou in the Company and the buyers, the above sale constitutes a common control transaction. In this respect, a gain of $281, was recognized and included in "Additional paid in capital", in the accompanying consolidated balance sheet as at December 31, 2016, in accordance with the relevant US GAAP guidance.
On September 27, 2016, October 5, 2016 and October 18, 2016, the Company also concluded Memoranda of Agreement with unaffiliated third-parties for the sale of its Panamax vessels, Ocean Crystal, Sonoma and Sorrento, respectively for gross prices of $3,720, $3,950 and $6,700, respectively. As a result of the concluded agreements, the Company revalued the respective vessels as of September 30, 2016, to their fair values with reference to their purchase prices. On November 7, 2016, November 15, 2016 and November 22, 2016, the vessels Ocean Crystal, Sonoma and Sorrento, respectively were delivered to their new owners.
On October 26, 2016, the Company entered into sales agreement with entities controlled by the Company's Chairman and Chief Executive Officer, Mr. George Economou, for the sale of the shares of the owning companies of three Panamax vessels the Amalfi, Galveston (the vessel Galveston was sold and delivered to its owners on November 30, 2015) and Samatan, along with the associated bank debt for an aggregate gross price of $15,000. As part of the transaction the Company also paid the amount of $58,619, being the difference between the purchase price and the outstanding balance of the respective debt facility, to the new owners. The Company drew down the respective amount under its New Revolving Facility (Note 3). The shares of the vessel owning companies were delivered to the new owners on October 31, 2016. Due to the controlling interests of Mr. George Economou in the Company and the buyers, the above sales constitute a common control transaction. In this respect, an aggregate loss of $476, was recognized and included in "Additional paid in capital", in the accompanying consolidated balance sheet as at December 31, 2016, in accordance with the relevant US GAAP guidance.
During the six-month period ended June 30, 2016, a charge of $18,266 was also recognized as "Impairment loss, gain/loss from sale of vessel owning companies and other", due to the reduction of the vessels' held for sale carrying amount to their fair value less cost to sell.
As of December 30, 2016, and due to the improved financial condition of the Company, the Board of Directors decided that the 13 drybulk vessels comprising the Company's drybulk fleet, previously classified as held for sale, were not going to be sold, effective December 31, 2016. Therefore, the Company reclassified its drybulk fleet as held and used.
On January 19, 2017, the Company acquired the first VLGC, Anderida, pursuant to the exercise of the respective options as per the LPG Option Agreement (Note 3), which was under construction at the time of acquisition at HHI, for a purchase price of $83,500. The Company paid an amount of $21,850 of the total purchase price, by using part of the undrawn liquidity under the New Revolving Facility (Note 3). An amount of $6,500 of the total amount paid, representing the value of the time charter attached acquired, was classified in “Additional Paid-in Capital”, under the respective “Accounting for transactions under common control”. The $61,650 balance of the purchase price for the VLGC was paid in installments until the vessel's delivery from HHI. The Company took delivery of the vessel on June 28, 2017.
On February 10, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one Aframax tanker under construction, Balla, for a purchase price of $44,500. The vessel was delivered on April 27, 2017.
On February 14, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one second hand Very Large Crude Carrier, Shiraga, for a purchase price of $57,000. The Company took delivery of this vessel on June 9, 2017.
On March 1, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one second hand Aframax tanker, Stamos, for a purchase price of $29,000. The Company took delivery of this vessel on May 15, 2017.
On March 24, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one modern, second-hand Newcastlemax drybulk vessel, Marini, for a purchase price of $30,750. The Company took delivery of this vessel on May 2, 2017.
On March 31, 2017, the Company concluded three Memoranda of Agreement with unaffiliated third parties for the acquisition of three Kamsarmax drybulk vessels, two second hand, Matisse and Valadon, and one under construction, Kelly, for a total purchase price of $71,000. The vessels Valadon, Matisse and Kelly were delivered on May 17, 2017, June 1, 2017 and June 14, 2017, respectively.
On April 12, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one second hand Kamsarmax drybulk carrier, Nasaka, for a purchase price of $22,000. The Company took delivery of this vessel on May 10, 2017.
On April 27, 2017, the Company concluded a Memorandum of Agreement with an unaffiliated third party for the acquisition of one second hand Kamsarmax drybulk vessel, Castellani, for a purchase price of $23,500. The Company took delivery of this vessel on June 6, 2017.
On May 15, 2017, the Company also entered into a purchase agreement with an entity affiliated with Mr. George Economou for the purchase of the shares of the owning company of the Suezmax newbuilding vessel Samsara, for a purchase price of $64,000. The vessel was time chartered back to the seller and employed from May 24, 2017 under a five year time charter plus optional periods in charterer's option at a base rate plus profit share and the charterer was also granted purchase options at the end of each firm period. An amount of $440 of the total amount paid, representing the excess of the carrying value of the assets of the vessel owning company acquired over the purchase price paid, was classified in “Additional Paid-in Capital”, under the respective “Accounting for transactions under common control”. The Company took delivery of this vessel on May 19, 2017. (Note 3) The Company accounts the abovementioned lease as an operating lease since none of the capital lease criteria are met. In particular, with respect to the charterers purchase option the respective term does not meet the capital lease classification criterion of a bargain purchase on the grounds that the purchase option exercise is not considered probable as there is no period that the exercise price will be lower than the anticipated value of the vessel.
During the six-month period ended June 30, 2017, an amount of $4,306, relating to capitalized expenses and $685 relating to capitalized interest, are included in the “Vessels, net”,
As of June 30, 2017, the VLGC Anderida was pledged as collateral to secure the Company's long-term debt (Note 9).
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Acquisition of Nautilus Offshore Services Inc. |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of Nautilus Offshore Services Inc.: | 7. Acquisition of Nautilus Offshore Services Inc.:
The Company acquired through the acquisition of Nautilus Offshore Services Inc. ("Nautilus"), during 2015, six Offshore Supply Vessels, all of which were on time charters to Petroleo Brasileiro S.A. (Petrobras) until certain dates in 2017, and included fixed day rates that were above day rates available as of the acquisition date. After determining the aggregate fair values of these time-chartered contracts as of the acquisition date, the Company recorded the respective contract fair values on the consolidated balance sheet under "Fair value of above market acquired time charters". These are amortized into revenues using the straight-line method over the respective contract periods (based on the respective contracts).
On February 15, 2016, March 3, 2016 and April 11, 2016, the Company announced that Petrobras had given notice of termination of the contracts for the vessels Crescendo, Jubilee and Indigo, respectively, effective as of March 6, 2016, March 9, 2016 and April 6, 2016. The contracts of the vessels Crescendo, Jubilee and Indigo were to expire on January 8, 2017, April 25, 2017 and August 30, 2017, respectively. On December 27, 2016, and in accordance with the respective terms the contract of the vessel Colorado expired.
Effective on May 3, 2017, Petrobras also gave notice of termination on the contract for the vessel Jacaranda. The contract of the vessel Jacaranda was expiring on July 3, 2017.
On June 21, 2017, and in accordance with the respective terms, the contract of the vessel Emblem expired.
The amortization and write offs of the fair value of the above market acquired time charter contracts as of June 30, 2016, amounted to $2,635 and $5,161 and are included to "Voyage and time charter revenue" and "Impairment loss, gain/loss from sale of vessel owning companies and other", respectively, in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2016. The amortization and write offs of the fair value of the above market acquired time charter contracts as of June 30, 2017, amounted to $1,200 and $300 and are included to "Voyage and time charter revenue" and "Impairment loss, gain/loss from sale of vessel owning companies and other", respectively, in the accompanying unaudited consolidated statement of operations for the six-month period ended June 30, 2017.
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Investment in Affiliates |
6 Months Ended |
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Jun. 30, 2017 | |
| Equity Method Investments and Joint Ventures [Abstract] | |
| Investment in Affiliates: | 8. Investment in Affiliates:
On June 8, 2015, following an equity offering of Ocean Rig, the Company lost its controlling financial interest and deconsolidated Ocean Rig from its financial statements. From that date onwards, Ocean Rig was considered as an affiliated entity and not as a controlled subsidiary of the Company and the investment in Ocean Rig was accounted for under the equity method due to the Company's significant influence over Ocean Rig.
As at March 31, 2016, the Company's investment in Ocean Rig had a carrying value of $208,176, while the market value of the investment was $45,985. Based on the relevant guidance provided by U.S.GAAP, the Company concluded that the investment in Ocean Rig was impaired and that the impairment was other than temporary. Therefore, the investment in Ocean Rig was written down to its fair value and a loss of $162,191 was recognized and included in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2016.
On April 5, 2016, the Company sold all of its shares in Ocean Rig, to a subsidiary of Ocean Rig for total cash consideration of approximately $49,911and recognized a gain of $792 as a result of the above transaction, including $343 relating to accumulated other comprehensive income and is included in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2016. As of April 5, 2016, the Company no longer holds any equity interest in Ocean Rig.
The Company's equity in the losses and capital transactions of Ocean Rig was 40.4% up to April 5, 2016 and is shown in the accompanying unaudited condensed consolidated statement of operations for the six-month period ended June 30, 2016, as "Equity in net losses of Ocean Rig" amounting to a loss of $41,454.
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Long-term Debt |
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| Long-term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt: | 9. Long-term Debt:
The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows:
Term bank loans and credit facilities
The bank loans are payable in U.S. Dollars in quarterly installments with balloon payments due at maturity until June 2023. Interest rates on the outstanding loans as at June 30, 2017, are based on LIBOR plus a margin.
During February 2017, May 2017, the Company made the first and second scheduled installments totaling of $1,333, according to the agreement concluded on November 18, 2016, under its loan agreement dated June 20, 2008.
On April 25, 2017, the Company made a prepayment of $15,158 and repaid in full the outstanding amount and overdue interest under a loan agreement dated March 19, 2012.
On June 22, 2017, the Company entered into a secured term bank loan of up to $150,000 to partially finance the construction costs relating to the four Very Large Gas Carriers Anderida, Aisling, Mont Fort and Mont Gelé. The facility bears interest at LIBOR plus a margin and is repayable in twenty-four quarterly installments. During June 2017, the Company drew an amount of $37,500, related to the delivery of the vessel Anderida.
The aggregate available undrawn amounts under the Company's facilities at December 31, 2016 and June 30, 2017, were $0 and $112,500, respectively.
The weighted-average interest rates on the above outstanding debt were 3.12% for the six-month period ended June 30, 2016 and 4.04% for the six-month period ended June 30, 2017.
The Company's secured credit facility dated June 22, 2017, is secured by first priority mortgage over the Company's VLGCs, corporate guarantees, first priority assignments of all freights, earnings, insurances and requisition compensation. The loan contains customary financial covenants that restrict, without the bank's prior consent, changes in management and ownership of the vessels, the incurrence of additional indebtedness and mortgaging of vessels and changes in the general nature of the Company's business. The loans also contain certain financial covenants relating to the Company's financial position and operating performance, such as maintaining liquidity above a certain level. The Company's secured credit facility impose operating and negative covenants on the Company and its subsidiaries. These covenants may limit DryShips' subsidiaries' ability to, among other things, without the lenders' prior consent (i) incur additional indebtedness, (ii) change the flag, class or management of the vessels mortgaged under such facility, (iii) create or permit to exist liens on their assets, (iv) make loans, (v) make investments or capital expenditures, and (vi) undergo a change in ownership or control.
As of June 30, 2017, the Company was in compliance with the covenants in its credit facilities.
Total interest incurred on long-term debt and amortization of debt issuance costs, including capitalized interest, for the six-month periods ended June 30, 2016 and 2017, amounted to $4,976, and $6,865, respectively. These amounts net of capitalized interest are included in "Interest and finance costs" in the accompanying unaudited interim condensed consolidated statements of operations.
The annual principal payments required to be made after June 30, 2017, including balloon payments, totaling $38,167, are as follows:
The Sierra Revolving Facility Agreement is discussed in note 3 herein.
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Financial Instruments and Fair Value Measurements |
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| Financial Instruments and Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments and Fair Value Measurements: | 10. Financial Instruments and Fair Value Measurements:
ASC 815, "Derivatives and Hedging" requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet.
The Company recognizes all derivative instruments as either assets or liabilities at fair value on its consolidated balance sheets.
The Company enters into interest rate swap transactions to manage interest costs and risk associated with changing interest rates with respect to its variable interest rate loans and credit facilities. All of the Company's derivative transactions are entered into for risk management purposes.
All of the Company's interest swap agreements were either matured or terminated during the year ended December 31, 2016. As of December 31, 2016 and June 30, 2017, the Company had no interest rate swap agreements outstanding.
During the six-month periods ended June 30, 2016 and 2017, the losses transferred from accumulated other comprehensive loss to the unaudited interim condensed consolidated statements of operations were $110 and $0, respectively.
The carrying amounts of cash and cash equivalents, restricted cash, trade accounts receivable, accounts payable, other current assets and liabilities and due to / due from related parties reported in the consolidated balance sheets approximate their respective fair values because of the short term nature of these accounts. Assets and liabilities held for sale are stated at fair value less cost to sell. The fair value of credit facilities is estimated based on current rates offered to the Company for similar debt of the same remaining maturities. Additionally, the Company considers its creditworthiness in determining the fair value of the credit facilities. The carrying value approximates the fair market value for the floating rate loans. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based LIBOR swap yield curves, taking into account current interest rates and the creditworthiness of both the financial instrument counterparty and the Company.
The guidance for fair value measurements applies to all assets and liabilities that are being measured and reported on a fair value basis. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. The statement requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
During 2016, the sale of the owning companies of the Capesize vessels' Fakarava, Rangiroa and Negonego resulted into a charge of $23,018, included in "Impairment loss, gain/loss from sale of vessel owning companies and other" for the six-month period ended June 30, 2016 (Note 6).
An additional charge of $18,266 was also recognized as of June 30, 2016, and included in "Impairment loss, gain/loss from sale of vessel owning companies and other", due to the reduction of the vessels' held for sale carrying amount to their fair value less cost to sell. (Note 6)
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Common Stock and Additional Paid-in Capital |
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| Common Stock and Additional Paid-in Capital | |
| Common Stock and Additional Paid-in Capital: | 11. Common Stock and Additional Paid-in Capital:
Dividends
On February 27, 2017, the Company's Board of Directors decided to initiate a new dividend policy. Under this policy, the Company will pay a regular fixed quarterly dividend of $2,500 to the holders of common stock. In addition, at its discretion, the Board may decide to pay additional amounts as dividend each quarter depending on market conditions and the Company's financial performance, over and above the fixed amount.
On February 27, 2017, the Company's Board of Directors declared a quarterly dividend of $2,500, with respect to the quarter ended December 31, 2016, to the common shareholders of record as of March 15, 2017. The dividend was paid on March 30, 2017.
On April 11, 2017, the Company's Board of Directors declared its second quarterly dividend of $2,500, with respect to the quarter ended March 31, 2017, to the common shareholders of record as of May 1, 2017. The dividend was paid on May 12, 2017.
On July 7, 2017, the Company's Board of Directors declared its third quarterly dividend of $2,500, with respect to the quarter ended June 30, 2017, to the common shareholders of record as of July 20, 2017, was paid on August 2, 2017. (Note 18)
Reverse stock splits
On February 22, 2016, the Reverse Stock Split Committee of the Company resolved to effect a 1-for-25 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on March 11, 2016.
On July 29, 2016, the Board of Directors of the Company also determined to effect a 1-for-4 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on August 15, 2016.
On October 27, 2016, the Reverse Stock Split Committee of the Company determined to effect a 1-for-15 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on November 1, 2016.
On January 18, 2017, the Board of Directors of the Company determined to effect a 1-for-8 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on January 23, 2017.
On April 6, 2017, the Company determined to effect a 1-for-4 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on April 11, 2017.
On May 2, 2017, the Company determined to effect a 1-for-7 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on May 11, 2017.
On June 16, 2017, the Company determined to effect a 1-for-5 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on June 22, 2017.
On July 7, 2017, the Company determined to effect a 1-for-7 reverse stock split of its common shares. The reverse stock split occurred, and the Company's common stock began trading on a split adjusted basis on the Nasdaq Capital Market, as of the opening of trading on July 21, 2017. (Note 18)
All previously reported share and per share amounts have been restated to reflect the reverse stock splits.
Issuance of common shares
On December 23, 2016, the Company, entered into an agreement (the “2016 Purchase Agreement”) with Kalani Investments Limited (the "Investor"), an entity organized in the British Virgin Islands that is not affiliated with the Company, under which the Company could sell up to $200,000 of its common stock to the Investor over a period of 24 months, subject to certain limitations. Proceeds from any sales of common stock were used for general corporate purposes. The Investor had no right to require any sales and was obligated to purchase the common stock as directed by the Company, subject to certain limitations set forth in the agreement. In consideration for entering into the agreement, the Company has agreed to issue up to $1,500 of its common stock to the Investor as a commitment fee. No warrants, derivatives, or other share classes are associated with this agreement. As of January 31, 2017, the Company completed the sale to the Investor of the full $200,000 worth of shares of its common stock under the 2016 Purchase Agreement, which then automatically terminated in accordance with its terms. Between the date of the 2016 Purchase Agreement, December 23, 2016, and January 30, 2017, the Company sold an aggregate of 32,418 shares (254,159,520 before the 1-for-8, 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of common stock to the Investor, and issued an aggregate 263 common shares (2,065,120 before the 1-for-8, 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) to the Investor as a commitment fee for entering into the 2016 Purchase Agreement.
On February 17, 2017, the Company entered into a common stock purchase agreement (the “February 2017 Purchase Agreement”), with the Investor. The February 2017 Purchase Agreement provided that, upon the terms and subject to the conditions set forth therein, the Investor was committed to purchase up to $200,000 worth of shares of the Company's common stock over the 24-month term of the purchase agreement and receive up to an aggregate of $1,500 of shares of our common stock as a commitment fee in consideration for entering into the February 2017 Purchase Agreement. As of March 17, 2017, the Company completed the sale to the Investor of the full $200,000 worth of shares of common stock under the February 2017 Purchase Agreement, which then automatically terminated in accordance with its terms. Between the date of the February 2017 Purchase Agreement, February 17, 2017, and March 16, 2017, the Company sold an aggregate 117,293 shares of its common stock (114,947,079 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) to the Investor, and issued an aggregate 872 common shares (854,631 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) to the Investor as a commitment fee for entering into the February 2017 Purchase Agreement.
On April 3, 2017, the Company entered into a common stock purchase agreement (the “April 2017 Purchase Agreement”), with the Investor. The April 2017 Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, the Investor is committed to purchase up to $226,400 worth of shares of the Company's common stock over the 24-month term of the April 2017 Purchase Agreement and would receive up to an aggregate of $1,500 of shares of the Company's common stock as a commitment fee in consideration for entering into the April 2017 Purchase Agreement. As of June 30, 2017, the Company has sold an aggregate of 1,843,825 shares (1,806,948,500 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) to the Investor under the April 2017 Purchase Agreement for a gross price of $132,390 and issued an aggregate 3,966 common shares (3,886,680 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) to the Investor as a commitment fee for entering into the April 2017 Purchase Agreement. The Company terminated the April 2017 Purchase Agreement on August 11, 2017. (Note 18)
Issuance of preferred shares
On June 8, 2016, the Company, entered into a Securities Purchase Agreement with an institutional investor for the sale of 5,000 newly designated Series C Convertible Preferred Shares, warrants to purchase 5,000 Series C Convertible Preferred Shares and 0 common shares (310 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits). The securities were issued to the investor through a registered direct offering. The total net proceeds from the offering, after deducting offering fees and expenses, were approximately $5,000. The Company further received $5,000 due to the exercise of all warrants, and the total proceeds were $10,000. The Series C Convertible Preferred Stock accrued cumulative dividends on a monthly basis at an annual rate of 8%. Such accrued dividends were payable in shares of common stock or in cash at the Company's option, or in a combination of cash and common shares.
On July 6, 2016, August 3, 2016, September 1, 2016, October 5, 2016 and November 4, 2016, the Company issued 0 (70 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits), 0 (17 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits), 0 shares of Common stock (278 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits), 0 (328 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) and 0 shares of Common stock (339 shares before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) respectively, as dividend to the holders of our Series C Convertible Preferred shares.
As of November 18, 2016, the 5,000 Series C Convertible Preferred Shares issued on June 15, 2016 and their respective $400 dividends have been converted to 29 common shares (28,697 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) and the 5,000 Series C Convertible Preferred Shares issued on August 10, 2016, due to the exercise of the respective warrants, and their respective $344 dividends have been converted to 152 common shares (149,187 before the 1-for-8, 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits).
On September 9, 2016, the Company entered into an agreement to convert $8,750 of the outstanding balance of the Revolving Credit Facility with Sifnos (Note 3) into 29 Series D Preferred shares (29,166 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) of the Company. Each preferred share has 100,000 votes and shall not be convertible into common stock of the Company. The 29 Series D Preferred shares (29,166 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) were issued on September 13, 2016.
On November 16, 2016, the Company entered into a Securities Purchase Agreement with the Investor, for the sale of 20,000 newly designated Series E-1 Convertible Preferred Shares, preferred warrants to purchase 30,000 Series E-1 Convertible Preferred Shares, preferred warrants to purchase 50,000 newly designated Series E-2 Convertible Preferred Shares, prepaid warrants to initially purchase an aggregate of 47 common shares (46,609 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits - with the number of common shares issuable subject to adjustment as described therein), and 0 common shares (13 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits). The total gross proceeds from the sale of the securities and the exercise of the preferred warrants, were $100,000. The Series E1 and E2 Convertible Preferred shares were entitled to receive dividends which could be paid by the Company, in shares of common stock or cash or a combination of cash and common shares and which were cumulative and accrued and compounded monthly.
As of December 12, 2016, the initial 20,000 Series E-1 Convertible Preferred Shares, which were issued on November 21, 2016, and their respective $1,400 dividends were converted to 873 common shares (856,352 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits). Also, as of December 12, 2016, all preferred warrants were exercised and the 80,000 preferred shares were issued and together with their respective $5,551 dividends were converted to 3,153 common shares (3,090,405 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits). Finally, all prepaid warrants have been exercised and in this respect, 45 common shares (44,822 before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits) were issued.
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Equity Incentive Plan |
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| Equity Incentive Plan [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Incentive Plan: | 12. Equity Incentive Plan:
A summary of the status of the Company's non-vested shares as of December 31, 2016 and the movement during the six-month period ended June 30, 2017, is presented below. There were no shares granted and no shares forfeited in the six-month period ended June 30, 2017.
As of December 31, 2016 and June 30, 2017, there was $2,419 and $1,561, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan. That cost is expected to be recognized over a period of two years.
The amounts of $1,781 and $857, represent the stock based compensation expense for the six-month periods ended June 30, 2016 and 2017, respectively and are recorded in "General and administrative expenses", in the accompanying unaudited interim condensed consolidated statements of operations. The total fair value of shares vested during the six-month periods ended June 30, 2016 and 2017, was $0.
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Commitment and Contingencies |
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| Commitment and Contingencies [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Commitment and Contingencies: | 13. Commitment and Contingencies:
13.1 Legal proceedings:
Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping business.
As part of the normal course of operations, the Company's customers may disagree on amounts due to the Company under the provision of the contracts which are normally settled through negotiations with the customer. Disputed amounts are normally reflected in revenues at such time as the Company reaches agreement with the customer on the amounts due.
An investigation was carried out by Chinese authorities in relation with an alleged collision of the vessel Catalina with a fishing boat while enroute to Indonesia on May 7, 2016. The vessel remained detained in Ningbo, China and was released during July 2016. Following determination of the Chinese Maritime authorities on the apportionment of inter ship liability, the P&I Club is in the process of negotiating the settlement of the property damage claim of the owners of the fishing boat in order to cover owners' portion of such liability. Crew claims were separately settled by such club. The criminal proceedings in relation to such case are still ongoing.
HPOR Servicos De Consultaria Ltda ("HPOR") on September 1, 2016, commenced London arbitration references against the Company. seeking payment of certain commissions that HPOR is alleging were due by, amongst others, the Company for certain agency and marketing services provided for the Ocean Rig Mykonos and the Ocean Rig Corcovado drilling units. The Company is disputing such allegations and has counterclaimed repayment of the commission already paid to HPOR.
On July 4, 2017, the Company announced that it and its chief executive officer and chairman of the Company's board of directors, Mr. George Economou, had been named as defendants in a lawsuit filed in High Court of the Republic of the Marshall Islands (Civil Action No. 2017-131) by Michael Sammons alleging, in relevant part, breaches of fiduciary duty, unjust enrichment, and conflict of interest. The plaintiff sought, among other things, a temporary restraining order and preliminary injunction to suspend any further issuances of new common shares by the Company at a price per share below the price specified by the plaintiff in the complaint, as well as certain other compensatory and punitive damages specified in the complaint. On July 24, 2017, the High Court of the Marshall Islands (the "Court") issued an order denying plaintiff's motion for a preliminary injunction. On August 10, 2017, the plaintiff filed a first amended complaint which added new plaintiff, and was styled as a direct action only, alleging three new counts for breach of fiduciary duties and constructive fraud, and removing certain of the counts asserted in the original complaint. The plaintiffs requested to proceed pro se and on August 16, 2017, the Court granted a motion to withdraw filed by plaintiffs' counsel. On August 22, 2017, now acting pro se, plaintiffs filed a motion for leave to file a second amended complaint, making certain changes to the allegations of the first amended complaint and propounding an additional count for breach of fiduciary duties. The most recent complaint seeks compensatory damages of $1.56 million and treble punitive damages of $4.68 million against Mr. Economou, and requests injunctive and equitable relief against the Company. The Company and Mr. Economou believe the complaint, as amended, to be without merit and intend to file motions to dismiss or other appropriate responses to the second amended complaint once a deadline is set by the Court.
On July 14, 2017, a purported class action complaint was filed in the United States District Court for the Southern District of New York (No. 1:17-cv-05368(JFK)) by Maxime Hodges on behalf of himself and all others similarly situated against the Company and two of its executive officers. The complaint alleges that the Company and two of its executive officers violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Company will respond to the complaint by the appropriate deadline to be set in the future. The Company and its management believe that the complaint is without merit and plan to vigorously defend themselves against the allegations.
On August 2, 2017, a purported class action complaint was filed in the United States District Court for the Eastern District of New York (No. 17-cv-04547) by Herbert Silverberg on behalf of himself and all others similarly situated against, among others, the Company and two of its executive officers. The complaint alleges that the Company and two of its executive officers violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Company will respond to the complaint by the appropriate deadline to be set in the future. The Company and its management believe that the complaint is without merit and plan to vigorously defend themselves against the allegations.
On August 31, 2017, a lawsuit was filed in the High Court of the Republic of the Marshall Islands (Civil Action No. 2017-_) by certain Ocean Rig Creditors against, among others, the Company and two of its executive officers. The complaint alleges nine causes of action, including claims for avoidance and recovery of actual and/or constructive fraudulent conveyances under common law or 6 Del. Code §§ 1304(A)(1), 1305, 1307, and 1308; aiding and abetting fraudulent conveyances; and declaratory judgment under 30 MIRC § 202. The Company will respond to the complaint by the appropriate deadline to be set in the future. The Company and its management believe that the complaint is without merit and plan to vigorously defend ourselves against the allegations.
Other than the cases mentioned above, the Company is not a party to any material litigation where claims or counterclaims have been filed against the Company other than routine legal proceedings incidental to its business.
13.2 Purchase obligations
The following table sets forth the Company's contractual obligations and their maturity dates as of June 30, 2017:
13.3 Contractual charter revenue
Future minimum contractual charter revenue, based on operating vessels committed to non-cancelable, long-term time contracts as of June 30, 2017, amount to $25,032 for the twelve months ending June 30, 2018, $17,017 for the twelve months ending June 30, 2019, $17,034 for the twelve months ending June 30, 2020, $17,017 for the twelve months ending June 30, 2021 and $15,228 for the twelve months ending June 30, 2022. These amounts do not include any assumed off-hire.
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Interest and Finance Costs |
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| Interest and Finance Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and Finance Costs: | 14. Interest and Finance Costs:
The amounts in the accompanying unaudited interim condensed consolidated statements of operations are analyzed as follows:
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Segment Information |
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| Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information: | 15. Segment Information:
The Company has currently four reportable segments from which it derives its revenues: drybulk, offshore support, tanker and gas carrier segments. The Company, after selling its whole tanker fleet during 2015, re-entered the tanker market through the acquisition of four tanker vessels (Note 6) which were delivered during the six-month period ended June 30, 2017. The Company also entered during 2017 the gas carrier market through the acquisition of four VLGCs (Note 5 and 6). Finally the Company received earnings or losses from its investment in Ocean Rig up to April 5, 2016 (Note 3 and 8). The reportable segments reflect the internal organization of the Company and are a strategic business that offers different products and services. The drybulk business segment consists of transportation and handling of drybulk cargoes through ownership and trading of vessels. The offshore support business segment consists of offshore support services to the global offshore energy industry through the operation of a diversified fleet of offshore support vessels. The tanker business segment consists of vessels for the transportation of crude and refined petroleum cargoes. The gas carrier segment consists of vessels for the transportation of liquefied petroleum gas.
The tables below present information about the Company's reportable segments as of and for the six-month periods ended June 30, 2016 and 2017. The accounting policies followed in the preparation of the reportable segments are the same as those followed in the preparation of the Company's consolidated financial statements. The Company allocates general and administrative expenses of the parent company to its subsidiaries on a pro rata basis.
The Company measures segment performance based on net loss. Summarized financial information concerning each of the Company's reportable segments is as follows:
The Company's tankers and VLGCs operate on many trade routes throughout the world, and, therefore, the provision of geographic information is considered impractical by management.
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Losses per Share |
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| Losses per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Losses per Share: | 16. Losses per Share:
The Company calculates basic and diluted losses per share as follows:
For the six-month periods ended June 30, 2016 and 2017 and given that the Company incurred losses, the effect of including any potential common shares in the denominator of diluted per-share computations would have been anti-dilutive and therefore, basic and diluted losses per share are the same.
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Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |
| Income Taxes: | 17. Income Taxes:
None of the countries of incorporation of the Company and its subsidiaries impose a tax on international shipping income earned by a "non-resident" corporation thereof. Under the laws of the Republic of the Marshall Islands, Malta and Norway, the countries in which the Company and the drybulk, offshore support, tanker and gas carrier vessels owned by subsidiaries of the Company are registered, the Company's subsidiaries (and their vessels) are subject to registration fees and tonnage taxes, as applicable, which have been included in Vessels' operating expenses in the accompanying unaudited interim condensed consolidated statements of operations.
The Republic of the Marshall Islands, Malta and Norway, the jurisdictions where the Company and its ship-owning subsidiaries are incorporated, each grants an "equivalent exemption" to United States corporations with respect to each type of shipping income earned by the Company's ship-owning subsidiaries. Therefore, the ship-owning subsidiaries may be eligible to qualify for exemption from United States federal income taxation with respect to U.S. source shipping income if such companies satisfy certain ownership and documentation requirements under applicable U.S. federal income tax law and regulations. The ship-owning subsidiaries will be deemed to satisfy these certain requirements if the Company is able to satisfy such requirements. The Company does not believe that it can satisfy the ownership requirements to qualify for an exemption from United States taxation on its U.S. source shipping income for the taxable year ending December 31, 2017. Therefore, each of the Company's Republic of the Marshall Islands, Malta and Norway ship-owning subsidiaries will be subject to U.S. federal income tax in respect of their U.S. source shipping income. The Company is in the process of estimating what its tax exposure will be.
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Subsequent Events |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Subsequent Events | |
| Subsequent Events: | 18. Subsequent Events:
18.1 On July 5, 2017, July 6, 2017 and July 13, 2017, the vessels Morandi, Bacon, and Judd, respectively were delivered to the Company. (Note 5)
18.2 On July 7, 2017, the Company's Board of Directors declared its third quarterly dividend of $2,500, with respect to the quarter ended June 30, 2017, to the common shareholders of record as of July 20, 2017, which was paid on August 2, 2017. (Note 11)
18.3 On July 18, 2017, the Company's Board of Directors has determined to effect a 1-for-7 reverse stock split of the Company's common shares, which became effective on July 21, 2017.
18.4 As of August 3, 2017, the Company has sold an aggregate of 31,349,650 common shares (219,447,550 before the 1-for-7 reverse stock split) to the Investor under the April 2017 Purchase Agreement for a gross price of $193,538. The Company terminated the April 2017 Purchase Agreement on August 11, 2017.
18.5 On August 11, 2017, the Company's Audit Committee approved a binding term sheet (the “Term Sheet”) pursuant to which the Company will sell the Company's common shares to entities affiliated with its Chairman and Chief Executive Officer, Mr. George Economou, for aggregate consideration of $100 million at a price of $2.75 per share (the “Private Placement”). Pursuant to the Term Sheet, the Audit Committee has also approved a subsequent rights offering (the “Rights Offering”) that would allow the Company's shareholders to purchase their pro rata portion of up to $100 million of the Company's common shares at a price of $2.75 per share. The Term Sheet, Private Placement and Rights Offering were approved by the Audit Committee, which is comprised of independent members of our board of directors, taking into account a fairness opinion from an independent third-party financial advisor.
18.6 On August 29, 2017, the Company announced the closing of the Private Placement. The Company did not receive any cash proceeds from the Private Placement. Mr. Economou has also agreed, either directly or through his affiliated entities, to refrain from re-selling for a six-month period any common shares of the Company acquired by him in the Private Placement and the Rights Offering; and the Company has agreed not to conduct any equity offerings until after December 31, 2017, without the prior approval of the majority of its unaffiliated shareholders.
As of August 29, 2017, following the closing of the Private Placement, (i) the Company owns 49% of Heidmar Holdings LLC pursuant to a joint venture with Morgan Stanley; (ii) the Deed of Participation Rights with Mountain Investments Inc., an entity affiliated with Mr. Economou, has been terminated; (iii) the balance of the Revolving Sierra Credit Facility stands at $173 million; and (iv) the Series D Preferred Shares held by Sifnos Shareholders Inc., an entity affiliated with Mr. Economou, have been retired.
18.7 On August 29, 2017, the Company announced its intention to launch its previously announced Rights Offering. The Rights Offering is expected to be made through the pro-rata distribution of non-transferrable subscription rights to purchase, in the aggregate, up to 36,363,636 shares of Common Stock at a subscription price of $2.75 per share, to shareholders of the Company on August 31, 2017, resulting in gross proceeds of up to $100,000. Following the outcome of the Rights Offering and determination of the number of shares to be purchased pursuant to the backstop agreement with Sierra relating to the Rights Offering, the Sierra Revolving Credit Facility will be refinanced with a new loan facility secured by assets, with a loan to value ratio of 50%, a tenor of 5 years, no amortization and the margin over LIBOR will be decreased to 4.5%. No arrangement fees or otherwise will be charged in connection with the refinancing.
18.8 The Company received a subpoena from the Securities and Exchange Commission ("SEC") requesting certain documents and information from the Company in connection with offerings made by the Company between June 2016 and July 2017. The Company is providing the requested information to the SEC.
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Significant Accounting Policies (Policy) |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Significant Accounting Policies [Abstract] | |
| Recent accounting pronouncements | Recent Accounting pronouncements:
In January 2017, FASB issued ASU No. 2017-03 “Accounting Changes and Error Corrections (Topic 250) and Investments-Equity Method and Joint Ventures (Topic 323).” The ASU amends the Codification for SEC staff announcements made at recent Emerging Issues Task Force (EITF) meetings. The SEC guidance that specifically relates to our Consolidate Financial Statement was from the September 2016 meeting, where the SEC staff expressed its expectations about the extent of disclosures registrants should make about the effects of the new FASB guidance as well as any amendments issued prior to adoption, on revenue (ASU 2014-09), leases (ASU 2016-02) and credit losses on financial instruments (ASU 2016-13) in accordance with SAB Topic 11.M. Registrants are required to disclose the effect that recently issued accounting standards will have on their financial statements when adopted in a future period. In cases where a registrant cannot reasonably estimate the impact of the adoption, then additional qualitative disclosures should be considered. The ASU incorporates these SEC staff views into ASC 250 and adds references to that guidance in the transition paragraphs of each of the three new standards. The adoption of this new accounting guidance did not have a material effect on the Company's Consolidated Financial Statements.
In May 2017, the FASB issued ASU 2017-09, "Compensation — Stock Compensation (Topic 718), Scope of Modification Accounting" ("ASU 2017-09"), which clarifies and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. ASU 2017-09 is effective for annual periods, including interim periods within those annual periods, beginning after 15 December 2017, however early adoption is permitted. The Company is in the process of assessing the impact of the amendment of this Update on the Company's consolidated financial position and performance.
In May 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, clarifying the method used to determine the timing and requirements for revenue recognition on the statements of income. Under the new standard, an entity must identify the performance obligations in a contract, the transaction price and allocate the price to specific performance obligations to recognize the revenue when the obligation is completed. The amendments in this update also require disclosure of sufficient information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flow arising from contracts. In August 2015, FASB issued Accounting Standard Update No. 2015-14 "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 for all entities by one year. The standard will be effective for public entities for annual reporting periods beginning after December 15, 2017 and interim periods therein. The Company will adopt the standard as of January 1, 2018 and is expecting that the adoption of ASU 2014-09 may result in a change in the method of recognizing revenue for voyage charters, whereby the Company's method of determining proportional performance might change from discharge-to-discharge to load-to-discharge. This will result in no revenue being recognized from discharge of the prior voyage to loading of the current voyage and all revenue being recognized from loading of the current voyage to discharge of the current voyage. This change will result in revenue being recognized later in the voyage which may cause additional volatility in revenue and earnings between periods. The Company is in the process of validating aspects of ASU 2014-09, quantifying the effect that the adoption of the ASU 2014-09 will have on its financial statements, determining the transitional impact and completing other items required for the adoption of ASU 2014-09.
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Transactions with Related Parties (Tables) |
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| Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Related Party Transactions |
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Other Current assets (Tables) |
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| Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Current Assets |
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Advances for Vessels under Construction and Acquisitions (Tables) |
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| Advances for Vessels under Construction and Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||
| Advances for Vessels under Construction and Acquisitions |
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Vessels, net (Tables) |
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| Vessels, Drilling Units, Machinery and Equipment, net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Vessels |
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Acquisition of Nautilus Offshore Services Inc. (Tables) |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| Amortization Schedule |
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Long-term Debt (Tables) |
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| Long-term Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-term Debt |
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| Principal Payments |
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Financial Instruments and Fair Value Measurements (Tables) |
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| Effect of Derivative Instruments on the Consolidated Statements of Operations |
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Equity Incentive Plan (Tables) |
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| Non Vested Shares |
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| Purchase obligations |
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Interest and Finance Costs (Tables) |
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| Interest and Finance Costs [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and Finance Costs |
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Segment Information (Tables) |
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| Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reporting Information by Segment |
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Losses per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Losses per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Losses per Share |
|
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Basis of Presentation and General Information (Details) |
1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 7 Months Ended | 10 Months Ended | |
|---|---|---|---|---|---|---|---|---|
Jan. 23, 2017 |
Mar. 11, 2016 |
Apr. 11, 2017 |
May 11, 2017 |
Jun. 22, 2017 |
Jul. 21, 2017 |
Aug. 15, 2016 |
Nov. 01, 2016 |
|
| Stockholders' Equity, Reverse Stock Split | 1-for-8 reverse stock split of the Company's common shares, with which four fractional shares were cashed out | 1-for-25 reverse stock split of the Company's common shares, with which seven fractional shares were cashed out | 1-for-4 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | 1-for-7 reverse stock split of the Company's common shares, with which three fractional shares were cashed out | 1-for-5 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | 1-for-4 reverse stock split of the Company's common shares, with which five fractional shares were cashed out | 1-for-15 reverse stock split of the Company's common shares, with which nine fractional shares were cashed out | |
| Subsequent Event | ||||||||
| Stockholders' Equity, Reverse Stock Split | 1-for-7 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | |||||||
Significant Accounting Policies (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Schedule of Equity Method Investments [Line Items] | |
| Number of Reportable Segments | 4 |
| Additional reportable segments | |
| Schedule of Equity Method Investments [Line Items] | |
| Number of Reportable Segments | 2 |
| Tanker Segment | |
| Schedule of Equity Method Investments [Line Items] | |
| Number of vessels | 4 |
| Gas Carrier Segment | |
| Schedule of Equity Method Investments [Line Items] | |
| Number of vessels | 4 |
Transactions with Related Parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Due from related parties | $ 20,315 | $ 6,674 |
| Accrued liabilities | (4,600) | (3,709) |
| Due to related parties, current | (2,359) | (5,033) |
| Due to related parties, non-current | (194,321) | (116,617) |
| Advances for vessels under construction and related costs | 60,824 | 0 |
| Vessels, net | 516,629 | 95,550 |
| Related parties | ||
| Due from related parties | 20,315 | 6,674 |
| Accrued liabilities | (831) | (1,082) |
| Due to related parties, current | (2,359) | (5,033) |
| Due to related parties, non-current | (194,321) | (116,617) |
| Advances for vessels under construction and related costs | 428 | 0 |
| Vessels, net | $ 308 | $ 0 |
Transactions with Related Parties - Statement of Operations (Tables) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Voyage expenses | $ 6,629 | $ 3,998 |
| General and administrative expenses | 15,795 | 18,023 |
| Interest and finance costs | 6,827 | 818 |
| Related parties | ||
| Voyage expenses | 337 | 199 |
| General and administrative expenses | 12,048 | 13,475 |
| Commissions for assets acquired or sold | 2,778 | 700 |
| Interest and finance costs | $ 6,827 | $ 818 |
Transactions with Related Parties - Ocean Rig (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Apr. 05, 2016 |
Mar. 29, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Apr. 04, 2016 |
|
| Cash consideration from sale | $ 0 | $ 49,911 | |||
| Offshore support vessels Crescendo and Jubilee | |||||
| Time Charter Agreement Duration | 60 days | ||||
| Ocean Rig | |||||
| Cash consideration from sale | $ 49,911 | ||||
| Ownership interest in Ocean Rig | 0.00% | 40.40% | |||
Other Current Assets (Tables) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Other Assets [Abstract] | ||
| Inventories | $ 6,075 | $ 3,446 |
| Insurance claims (Note 13) | 1,968 | 1,071 |
| Other | 1,084 | 29 |
| Other current assets | $ 9,127 | $ 4,546 |
Advances for Vessels under Construction and Acquisitions (Table) (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2017
USD ($)
| |
| Balance, December 31, 2016 | $ 0 |
| Balance, June 30, 2017 | 60,824 |
| Advances for vessels under construction and acquisitions | |
| Balance, December 31, 2016 | 0 |
| Advances for vessels under construction and related costs | 60,824 |
| Balance, June 30, 2017 | $ 60,824 |
Vessels, net (Tables) (Details) $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2017
USD ($)
| |
| Balance, December 31, 2016 | $ 95,550 |
| Balance, June 30, 2017 | 516,629 |
| Cost | Vessels | |
| Balance, December 31, 2016 | 95,550 |
| Additions | 424,181 |
| Depreciation | 0 |
| Balance, June 30, 2017 | 519,731 |
| Accumulated Depreciation | Vessels | |
| Balance, December 31, 2016 | 0 |
| Additions | (1,468) |
| Depreciation | (1,634) |
| Balance, June 30, 2017 | (3,102) |
| Net Book Value | Vessels | |
| Balance, December 31, 2016 | 95,550 |
| Additions | 422,713 |
| Depreciation | (1,634) |
| Balance, June 30, 2017 | $ 516,629 |
Acquisition of Nautilus Offshore Services Inc. - Amortization Schedule (Table) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Dec. 31, 2016 |
|
| Business Combinations [Abstract] | ||
| Above-market acquired time charters | $ 1,500 | |
| Amortization and write-offs as of June 30, 2017 | $ 1,500 |
Acquisition Of Nautilus Offshore Services Inc. (Details) $ in Thousands |
6 Months Ended | |||
|---|---|---|---|---|
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015 |
|
| Carrying amount of vessels | $ 516,629 | $ 95,550 | ||
| Crescendo vessel | ||||
| Time charter contracts expiration date | Jan. 08, 2017 | |||
| Jubilee vessel | ||||
| Time charter contracts expiration date | Apr. 25, 2017 | |||
| Indigo vessel | ||||
| Time charter contracts expiration date | Aug. 30, 2017 | |||
| Colorado vessel | ||||
| Time charter contracts expiration date | Dec. 27, 2016 | |||
| Jacaranda vessel | ||||
| Time charter contracts expiration date | Jul. 03, 2017 | |||
| Emblem vessel | ||||
| Time charter contracts expiration date | Jun. 21, 2017 | |||
| Nautilus | ||||
| Amortization method of time-chartered contracts | straight-line | |||
| Impairment loss, gain/loss from sale of vessel owning companies and other | $ 300 | $ 5,161 | ||
| Amortization and write offs of fair value of acquired time charters | $ 1,200 | $ 2,635 | ||
| Nautilus | Offshore Support Vessels | ||||
| Number of vessels | 6 | |||
Investment in Affiliates (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Apr. 05, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Apr. 04, 2016 |
Mar. 31, 2016 |
|
| Schedule of Equity Method Investments [Line Items] | |||||
| Income (Loss) from Equity Method Investments | $ 0 | $ (41,454) | |||
| Cash consideration from sale | $ 0 | 49,911 | |||
| Ocean Rig | |||||
| Schedule of Equity Method Investments [Line Items] | |||||
| Ownership interest in Ocean Rig | 0.00% | 40.40% | |||
| Carrying value of the investment | $ 208,176 | ||||
| Market value of the investment | $ 45,985 | ||||
| Income (Loss) from Equity Method Investments | (41,454) | ||||
| Loss recognized due to impairment | $ 162,191 | ||||
| Cash consideration from sale | $ 49,911 | ||||
| Gain on sale | 792 | ||||
| Ocean Rig | Other comprehensive income | |||||
| Schedule of Equity Method Investments [Line Items] | |||||
| Gain on sale | $ 343 | ||||
Long-term Debt (Table) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Less: Deferred financing costs | $ (658) | $ (124) |
| Total debt | 37,509 | 16,811 |
| Less: Current portion | (3,566) | (16,811) |
| Long-term portion | 33,943 | 0 |
| Secured Credit Facilities | Drybulk Segment | ||
| Debt Instrument [Line Items] | ||
| Secured Debt | 667 | 16,935 |
| Secured Credit Facilities | Gas Carrier Segment | ||
| Debt Instrument [Line Items] | ||
| Secured Debt | $ 37,500 | $ 0 |
Long-term Debt - Principal Payments (Tables) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
|---|---|---|
| Long-term Debt, by Maturity [Abstract] | ||
| Due through June 30, 2018 | $ 3,711 | |
| Due through June 30, 2019 | 3,045 | |
| Due through June 30, 2020 | 3,045 | |
| Due through June 30, 2021 | 3,045 | |
| Due through June 30, 2022 | 3,045 | |
| Due through June 30, 2023 | 22,276 | |
| Total principal payments | 38,167 | |
| Less: Deferred financing costs | (658) | $ (124) |
| Total debt | $ 37,509 | $ 16,811 |
Long-Term Debt - Covenant Description and Compliance (Details) - Ocean Rig UDW Inc. |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Debt instrument covenant compliance | As of June 30, 2017, the Company was in compliance with the covenants in its credit facilities. |
| Debt instrument covenant description | The Company's secured credit facility dated June 22, 2017, is secured by first priority mortgage over the Company's VLGCs, corporate guarantees, first priority assignments of all freights, earnings, insurances and requisition compensation. The loan contains customary financial covenants that restrict, without the bank's prior consent, changes in management and ownership of the vessels, the incurrence of additional indebtedness and mortgaging of vessels and changes in the general nature of the Company's business. The loans also contain certain financial covenants relating to the Company's financial position and operating performance, such as maintaining liquidity above a certain level. The Company's secured credit facility impose operating and negative covenants on the Company and its subsidiaries. These covenants may limit DryShips' subsidiaries' ability to, among other things, without the lenders' prior consent (i) incur additional indebtedness, (ii) change the flag, class or management of the vessels mortgaged under such facility, (iii) create or permit to exist liens on their assets, (iv) make loans, (v) make investments or capital expenditures, and (vi) undergo a change in ownership or control. |
Financial Instruments and Fair Value Measurements - Derivatives not Designated as Hedging Instruments (Table) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Derivative Not Designated as Hedging Instruments | ||
| Interest rate swaps | $ 0 | $ (709) |
| Not Designated as Hedging Instruments | ||
| Derivative Not Designated as Hedging Instruments | ||
| Total | 0 | (709) |
| Loss on interest rate swaps | Not Designated as Hedging Instruments | ||
| Derivative Not Designated as Hedging Instruments | ||
| Interest rate swaps | $ 0 | $ (709) |
Common Stock and Additional Paid-in Capital - Dividends (Details) - USD ($) $ in Thousands |
2 Months Ended | 3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|---|
Feb. 27, 2017 |
Apr. 11, 2017 |
Jul. 07, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Payment of dividends | $ 2,500 | $ 2,500 | $ 5,001 | $ 0 | |
| Date of dividend record | Mar. 15, 2017 | May 01, 2017 | |||
| Date of dividend payment | Mar. 30, 2017 | May 12, 2017 | |||
| Subsequent Event | |||||
| Payment of dividends | $ 2,500 | ||||
| Date of dividend record | Jul. 20, 2017 | ||||
| Date of dividend payment | Aug. 02, 2017 | ||||
Equity Incentive Plan - Non-vested shares (Table) (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2017
$ / shares
shares
| |
| Number of non-vested shares | |
| Number of non vested shares | |
| Balance December 31, 2016 | 0 |
| Granted | 0 |
| Vested | 0 |
| Balance June 30, 2017 | 0 |
| Number of non-vested shares | Before the 1-for-4, 1-for-7, 1-for-5 and 1-for-7 reverse stock splits | |
| Number of non vested shares | |
| Balance December 31, 2016 | 225 |
| Weighted average grant date fair value per non-vested shares | |
| Weighted average grant date fair value per non vested shares | |
| Balance December 31, 2016 | $ / shares | $ 51,187,908.8 |
| Granted | $ / shares | 0 |
| Vested | $ / shares | 0 |
| Balance June 30, 2017 | $ / shares | $ 51,187,908.8 |
Equity Incentive Plan - Additional Information (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
| Unrecognized compensation cost related to non-vested share arrangements granted | $ 1,562 | $ 2,419 | |
| Weighted average period of recognition for unrecognised compensation cost | 2 years | ||
| Allocated Share-based Compensation Expense | $ 857 | $ 1,781 | |
| Total fair value of shares vested | $ 0 | $ 0 | |
| Number of shares granted | 0 | 0 | |
| Number of shares forfeited | 0 | 0 | |
Commitment and Contingencies - Purchase Obligations (Table) (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
|
|---|---|
| Vessels shipbuilding contracts and acquisitions | |
| 1st year | $ 258,270 |
| Total | 258,270 |
| Total obligations | |
| 1st year | 258,270 |
| Total | $ 258,270 |
Commitments and Contingencies - Contractual Charter Revenue (Details) $ in Thousands |
Jun. 30, 2017
USD ($)
|
|---|---|
| Unbilled Receivables, Not Billable at Balance Sheet Date [Abstract] | |
| Twelve months ending June 30, 2018 | $ 25,032 |
| Twelve months ending June 30, 2019 | 17,017 |
| Twelve months ending June 30, 2020 | 17,034 |
| Twelve months ending June 30, 2021 | 17,017 |
| Twelve months ending June 30, 2022 | $ 15,228 |
Commitment and Contingencies - Additional Information (Details) - Sammon v. Ecomomou - Subsequent Event $ in Thousands |
8 Months Ended |
|---|---|
|
Aug. 22, 2017
USD ($)
| |
| Compensatory damages | |
| Loss Contingencies [Line Items] | |
| Loss Contingency, Damages Sought, Value | $ 1,560 |
| Treble punitive damages | |
| Loss Contingencies [Line Items] | |
| Loss Contingency, Damages Sought, Value | $ 4,680 |
Interest and Finance Costs (Table) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Interest and Finance Costs [Abstract] | ||
| Interest incurred on long-term debt | $ 224 | $ 3,751 |
| Interest, amortization of financing fees and other on loan from related party | 6,827 | 818 |
| Amortization and write off of financing fees | 127 | 517 |
| Other | 126 | 288 |
| Capitalized interest cost | (1,562) | 0 |
| Total | $ 5,742 | $ 5,374 |
Segment Information (Table) (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Dec. 31, 2016 |
|
| Revenues from external customers | $ 28,189 | $ 30,198 | |
| Income tax expense | (20) | (19) | |
| Net loss | (26,351) | (115,923) | |
| Total assets | 740,067 | $ 193,730 | |
| Drybulk Segment | |||
| Revenues from external customers | 20,714 | 15,223 | |
| Net loss | (15,401) | (64,963) | |
| Total assets | 373,742 | 162,532 | |
| Offshore Support Segment | |||
| Revenues from external customers | 3,819 | 14,930 | |
| Income tax expense | (20) | (19) | |
| Net loss | (7,340) | (8,391) | |
| Total assets | 34,200 | 31,191 | |
| Tanker Segment | |||
| Revenues from external customers | 3,606 | 45 | |
| Net loss | (2,847) | (1,115) | |
| Total assets | 202,410 | $ 7 | |
| Gas Carrier Segment | |||
| Revenues from external customers | 50 | ||
| Net loss | (763) | ||
| Total assets | $ 129,715 | ||
| Drilling Segment | |||
| Net loss | $ (41,454) | ||
Segment Information (Details) |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Number of Reportable Segments | 4 |
| Tanker Segment | |
| Number of vessels acquired | 4 |
| Gas Carrier Segment | |
| Number of vessels acquired | 4 |
Losses per Share (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
| Earnings per Share Reconciliation [Abstract] | ||
| Net loss attributable to DryShips Inc | $ (26,351) | $ (115,923) |
| Less: Series C Convertible Preferred Stock dividends | 0 | (56) |
| Basic and diluted LPS | ||
| Loss attributable to common stockholders | $ (26,351) | $ (115,979) |
| Weighted-average number of outstanding shares (denominator) | 243,433 | 57 |
| Amount per share | $ (108.25) | $ (2,038,822.14) |
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 10 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 23, 2017 |
Feb. 27, 2017 |
Mar. 11, 2016 |
Apr. 11, 2017 |
May 11, 2017 |
Jul. 07, 2017 |
Jun. 30, 2017 |
Jun. 22, 2017 |
Jun. 30, 2016 |
Aug. 11, 2017 |
Aug. 03, 2017 |
Jul. 21, 2017 |
Aug. 15, 2016 |
Aug. 31, 2017 |
Aug. 29, 2017 |
Nov. 01, 2016 |
Dec. 31, 2016 |
|
| Stockholders' Equity, Reverse Stock Split | 1-for-8 reverse stock split of the Company's common shares, with which four fractional shares were cashed out | 1-for-25 reverse stock split of the Company's common shares, with which seven fractional shares were cashed out | 1-for-4 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | 1-for-7 reverse stock split of the Company's common shares, with which three fractional shares were cashed out | 1-for-5 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | 1-for-4 reverse stock split of the Company's common shares, with which five fractional shares were cashed out | 1-for-15 reverse stock split of the Company's common shares, with which nine fractional shares were cashed out | ||||||||||
| Proceeds From Issuance Of Common Stock | $ 504,419 | $ 0 | |||||||||||||||
| Payment of dividends | $ 2,500 | $ 2,500 | 5,001 | $ 0 | |||||||||||||
| Date of dividend record | Mar. 15, 2017 | May 01, 2017 | |||||||||||||||
| Date of dividend payment | Mar. 30, 2017 | May 12, 2017 | |||||||||||||||
| Sierra Investments Inc. | Revolving Facility | |||||||||||||||||
| Line of credit facility amount outstanding | $ 200,000 | $ 121,000 | |||||||||||||||
| Loan's tenor | 5 years | ||||||||||||||||
| Variable rate basis | LIBOR | ||||||||||||||||
| Spread on variable rate | 6.50% | ||||||||||||||||
| April 2017 Purchase Agreement | |||||||||||||||||
| Proceeds From Issuance Of Common Stock | $ 132,390 | ||||||||||||||||
| Stock Issued During Period Shares New Issues | 1,843,825 | ||||||||||||||||
| Morandi vessel | |||||||||||||||||
| Delivery Date | July 5, 2017 | ||||||||||||||||
| Bacon vessel | |||||||||||||||||
| Delivery Date | July 6, 2017 | ||||||||||||||||
| Judd vessel | |||||||||||||||||
| Delivery Date | July 13, 2017 | ||||||||||||||||
| Subsequent Event | |||||||||||||||||
| Stockholders' Equity, Reverse Stock Split | 1-for-7 reverse stock split of the Company's common shares, with which two fractional shares were cashed out | ||||||||||||||||
| Payment of dividends | $ 2,500 | ||||||||||||||||
| Date of dividend record | Jul. 20, 2017 | ||||||||||||||||
| Date of dividend payment | Aug. 02, 2017 | ||||||||||||||||
| Subsequent Event | Heidmar | |||||||||||||||||
| Ownership percentage | 49.00% | ||||||||||||||||
| Subsequent Event | Sierra Investments Inc. | Revolving Facility | |||||||||||||||||
| Line of credit facility amount outstanding | $ 173,000 | ||||||||||||||||
| Subsequent Event | April 2017 Purchase Agreement | |||||||||||||||||
| Stock Issued During Period Value New Issues | $ 193,538 | ||||||||||||||||
| Stock Issued During Period Shares New Issues | 31,349,650 | ||||||||||||||||
| Subsequent Event | April 2017 Purchase Agreement | Before 1-for-7 reverse stock split | |||||||||||||||||
| Stock Issued During Period Shares New Issues | 219,447,550 | ||||||||||||||||
| Subsequent Event | Private Placement | |||||||||||||||||
| Price per share | $ 2.75 | ||||||||||||||||
| Aggregate consideration | $ 100,000 | ||||||||||||||||
| Subsequent Event | Rights Offering | |||||||||||||||||
| Price per share | $ 2.75 | $ 2.75 | |||||||||||||||
| Aggregate consideration | $ 100,000 | ||||||||||||||||
| Subsequent Event | Rights Offering | Maximum | |||||||||||||||||
| Proceeds From Issuance Of Common Stock | $ 100,000 | ||||||||||||||||
| Stock Issued During Period Shares New Issues | 36,363,636 | ||||||||||||||||
| Subsequent Event | New Loan Facility | |||||||||||||||||
| Loan to Value ratio | 50.00% | ||||||||||||||||
| Loan's tenor | 5 years | ||||||||||||||||
| Variable rate basis | LIBOR | ||||||||||||||||
| Spread on variable rate | 4.50% | ||||||||||||||||