Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information [Abstract] | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Entity Registrant Name | Dryships Inc. |
Entity Central Index Key | 1,308,858 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Well Known Seasoned Issuer | Yes |
Entity Common Stock Shares Outstanding | 708,164,321 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | Drys |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 11,554 | $ 566,242 |
Restricted cash | 29,175 | 92,694 |
Trade accounts receivable, net of allowance for doubtful receivables of $2,825 and $36 at December 31, 2014 and at June 30, 2015, respectively | 45,863 | 404,656 |
Due from related parties (Note 4) | 39,495 | 38,221 |
Vessels held for sale (Note 7) | 530,640 | 0 |
Other current assets (Note 5) | 18,987 | 125,464 |
Total current assets | 675,714 | 1,227,277 |
FIXED ASSETS, NET: | ||
Advances for drillships under construction and related costs (Note 6) | 0 | 623,984 |
Vessels, net (Note 7) | 1,416,225 | 2,141,617 |
Drilling rigs, drillships, machinery and equipment, net (Note 7) | 0 | 6,259,747 |
Total fixed assets, net | 1,416,225 | 9,025,348 |
OTHER NON-CURRENT ASSETS: | ||
Investment in affiliate (Note 9) | 523,067 | 0 |
Financial instruments (Note 11) | 380 | 11,086 |
Other non-current assets (Note 8) | 550 | 107,892 |
Total other non-current assets | 523,997 | 118,978 |
Total assets | 2,615,936 | 10,371,603 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of deferred finance costs (Note 10) | 1,001,774 | 1,165,021 |
Accounts payable and other current liabilities | 14,031 | 97,608 |
Accrued liabilities | 13,136 | 192,239 |
Due to related parties (Note 4) | 49,220 | 12,717 |
Due to an affiliate company (Note 4) | 78,306 | 0 |
Deferred revenue | 1,932 | 123,728 |
Financial instruments (Note 11) | 8,757 | 30,447 |
Total current liabilities | 1,167,156 | 1,621,760 |
NON-CURRENT LIABILITIES | ||
Long-term debt, net of current portion and deferred finance costs (Note 10) | 0 | 4,352,592 |
Financial instruments (Note 11) | 62 | 10,420 |
Deferred revenue | 0 | 81,359 |
Other non-current liabilities | 0 | 15,084 |
Total non-current liabilities | $ 62 | $ 4,459,455 |
COMMITMENTS AND CONTINGENCIES (Note 14) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and June 30, 2015; 100,000,000 shares designated as Series A Convertible preferred stock; 0 shares of Series A Convertible Preferred stock issued and outstanding at December 31, 2014 and June 30, 2015, respectively | $ 0 | $ 0 |
Common stock, $0.01 par value; 1,000,000,000 shares authorized at December 31, 2014 and June 30, 2015; 706,064,321 and 708,164,321 shares issued and outstanding at December 31, 2014 and June 30, 2015, respectively | 7,081 | 7,060 |
Treasury stock; $0.01 par value; 36,100,000 shares at December 31, 2014 and June 30, 2015 (Note 12) | (361) | (361) |
Additional paid-in capital (Note 12) | 3,198,093 | 3,249,376 |
Accumulated other comprehensive income/(loss) | 17 | (6,622) |
Accumulated deficit | (1,756,112) | (256,632) |
Total DryShips Inc. stockholders' equity | 1,448,718 | 2,992,821 |
Non-controlling interests (Note 18) | 0 | 1,297,567 |
Total equity | 1,448,718 | 4,290,388 |
Total liabilities and stockholders' equity | $ 2,615,936 | $ 10,371,603 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets | ||
Allowance for doubtful receivables | $ 36 | $ 2,825 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 500,000,000 | 500,000,000 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued | 708,164,321 | 706,064,321 |
Common stock shares outstanding | 708,164,321 | 706,064,321 |
Treasury stock par value | $ 0.01 | $ 0.01 |
Treasury stock, shares | 36,100,000 | 36,100,000 |
Series A Convertible Preferred Stock | ||
Preferred stock shares authorized | 100,000,000 | 100,000,000 |
Issuance of preferred stock, shares | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Unaudited Interim Condensed Con
Unaudited Interim Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES: | ||
Voyage revenues (including amortization of above market acquired time charters) | $ 169,488 | $ 182,962 |
Service revenue, net | 725,805 | 802,197 |
Total Revenues (Note 16) | 895,293 | 985,159 |
EXPENSES: | ||
Voyage expenses | 48,605 | 59,486 |
Vessels, drilling rigs and drillships operating expenses | 317,373 | 392,574 |
Depreciation and amortization (Note 7) | 209,536 | 219,935 |
Impairment loss (Note 7) | 140,568 | 0 |
Loss on contract cancellation (Note 14) | 28,241 | 0 |
General and administrative expenses (Note 4) | 74,807 | 90,635 |
Legal settlements and other, net (Note 14) | (2,803) | 870 |
Operating income | 78,966 | 221,659 |
OTHER INCOME / (EXPENSES): | ||
Interest and finance costs (Note 15) | (146,837) | (207,533) |
Interest income | 489 | 7,240 |
Loss on interest rate swaps (Note 11) | (11,448) | (12,403) |
Other, net | (6,435) | 2,538 |
Total other expenses, net | (164,231) | (210,158) |
INCOME/ (LOSS) BEFORE INCOME TAXES AND EARNINGS OF AFFILIATED COMPANIES | (85,265) | 11,501 |
Loss due to deconsolidation of Ocean Rig (Note 9) | (1,347,106) | 0 |
Income taxes (Note 19) | (36,931) | (23,933) |
Equity in net earnings of affiliated company (Note 9) | 8,851 | 0 |
NET LOSS | (1,460,451) | (12,432) |
Less: Net income attributable to non-controlling interest | (39,029) | (27,753) |
NET LOSS ATTRIBUTABLE TO DRYSHIPS INC. | (1,499,480) | (40,185) |
NET LOSS ATTRIBUTABLE TO DRYSHIPS INC. COMMON STOCKHOLDERS (Note 17) | $ (1,499,745) | $ (40,300) |
LOSS PER COMMON SHARE ATTRIBUTABLE TO DRYSHIPS INC. COMMON STOCKHOLDERS BASIC AND DILUTED (Note 17) | $ (2.26) | $ (0.1) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES, BASIC AND DILUTED (Note 17) | 664,830,988 | 411,363,240 |
Unaudited Interim Condensed Co5
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Loss | ||
Net loss | $ (1,460,451) | $ (12,432) |
Other comprehensive income: | ||
Reclassification of realized losses associated with capitalized interest to the Unaudited Interim Condensed Consolidated Statement of Operations, net (Note 10) | 258 | 277 |
Actuarial gains | 42 | 491 |
Total other comprehensive income | 300 | 768 |
Total comprehensive loss | (1,460,151) | (11,664) |
Less: comprehensive income attributable to non-controlling interests | (39,144) | (28,064) |
Comprehensive loss attributable to DryShips Inc. | $ (1,499,295) | $ (39,728) |
Unaudited Interim Condensed Co7
Unaudited Interim Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements Of Cash Flows | ||
Net Cash Provided by Operating Activities | $ 209,908 | $ 197,876 |
Cash Flows Provided by/(Used in) Investing Activities: | ||
Cash decrease due to deconsolidation of Ocean Rig | (621,615) | 0 |
Fixed assets additions | (505,670) | (728,289) |
Short term investments | 74 | 74 |
(Increase)/Decrease in restricted cash | 51,717 | (23,880) |
Proceeds from sale of vessels | 49,000 | 0 |
Net Cash Used in Investing Activities | (1,026,494) | (752,095) |
Cash Flows Provided by/ (Used in) Financing Activities: | ||
Proceeds from long-term debt and senior notes | 462,000 | 950,000 |
Principal payments and repayments of long-term debt and senior notes | (173,214) | (607,313) |
Net proceeds from common stock issuance | 0 | 89,382 |
Dividends paid | (20,526) | (10,178) |
Payment of financing costs, net | (6,362) | (4,099) |
Net Cash Provided by Financing Activities | 261,898 | 417,792 |
Net decrease in cash and cash equivalents | (554,688) | (136,427) |
Cash and cash equivalents at beginning of the period | 566,242 | 595,142 |
Cash and cash equivalents at end of the period | $ 11,554 | $ 458,715 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 6 Months Ended |
Jun. 30, 2015 | |
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., its subsidiaries and its investment in affiliates (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 provider of international seaborne dry cargo and oil transportation services. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America ("U.S. GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission (the "SEC") and 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, 2014, filed with the SEC on March 10, 2015. 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, its affiliates and its VIEs. As of December 31, 2014, the Company consolidated one VIE for which it is deemed to be the primary beneficiary, i.e. it has a controlling financial interest in this entity. The VIE's total assets and liabilities, as of December 31, 2014, were $64,314 and $65,358, respectively, while total liabilities exceeded total assets by $1,044. From June 8, 2015, Ocean Rig UDW Inc. (“Ocean Rig”) has been considered as an affiliate entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig has been accounted for under the equity method and its assets and liabilities are not consolidated in the Company's balance sheet as of June 30, 2015 and, consequently, additional disclosures for Ocean Rig, its subsidiaries and its VIE's, for 2015 have not been included. 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, 2015, are not necessarily indicative of the results that might be expected for the fiscal year ending December 31, 2015. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
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, 2014, filed with the SEC on March 10, 2015 (the "Consolidated Financial Statements for the year ended December 31, 2014"). There have been no material changes to these policies in the six-month period ended June 30, 2015. Additional accounting policies Investments in Affiliates: Affiliates included in the financial statements accounted for under the equity method (i) Ocean Rig and its subsidiaries (ownership interest as of June 30, 2015 was 47.2%). |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure Text Block [Abstract] | |
Going Concern: | 3. Going Concern: As of June 30, 2015, the Company was in breach of certain financial covenants. Furthermore, the Company is in discussions to extend the maturity of a certain loan agreement which has lapsed. These incidents constitute events of default and may result in the lenders requiring immediate repayment of the loans. As a result of this non-compliance and of the cross default provisions contained in all bank loan agreements, the Company has classified the respective bank loans amounting to $1,015,834 as current liabilities (Note 10). As a result, the Company reported a working capital deficit of $491,442 at June 30, 2015, including the classification as current assets of "Vessels held for sale" of $530,640 (Note7). In addition, cash expected to be generated from operations assuming that current market charter hire rates would prevail in the twelve-month period ending June 30, 2016, will not be sufficient to cover the Company's current maturities of long-term debt and the Company expects to finance them with either cash on hand, operational cash flows and debt or equity issuances, or a combination thereof. The Company is currently in negotiations with some of its lenders to obtain waivers, waiver extensions or debt maturity extensions. Management expects that the lenders will not demand immediate payment of the loans. Management plans to settle the loan interest and scheduled loan repayments with cash expected to be generated from operations and from financing activities. The unaudited interim condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Accordingly, the unaudited interim condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, the amounts and classification of liabilities, or any other adjustments that might result in the event the Company is unable to continue as a going concern. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2015 | |
Transactions with Related Parties | |
Transactions with Related Parties: | 4. Transactions with Related Parties: The amounts included in the accompanying consolidated balance sheets and unaudited interim condensed consolidated statements of operations are as follows: December 31, 2014 June 30, 2015 Balance Sheet Due to related party - Cardiff Tankers Inc. $ (266 ) $ (220 ) Due to related party - Fabiana Services S.A. (1,000 ) - Due to related party - Vivid Finance Limited (164 ) - Due to related party - Cardiff Drilling Inc. (4,287 ) - Due to related party - Azara Services S.A. (4,000 ) - Due to related party - Basset Holding Inc. (3,000 ) - Due to an affiliate company - Ocean Rig UDW Inc. - (78,306 ) Due to related party - Deposits for vessel sales - (49,000 ) Due to related party - Total $ (12,717 ) $ (127,526) Due from related party - TMS Bulkers Ltd. 28,318 28,395 Due from related party - TMS Tankers Ltd. 9,903 11,100 Due from related party - Total $ 38,221 $ 39,495 Advances for drillships under construction - Cardiff Drilling Inc., for the year/period 1,546 - Vessels, net -TMS Bulkers Ltd./ TMS Tankers Ltd., for the year/period 530 - Drilling rigs, drillships, machinery and equipment, net -Cardiff Drilling Inc., for the year/period 2,885 - Six-month period ended June 30, Statement of Operations 2014 2015 Service revenues, net - Cardiff Drilling Inc. $ 7,729 $ 7,366 Voyage expenses - TMS Tankers Ltd. (982 ) (1,297 ) Voyage expenses - TMS Bulkers Ltd. (1,401 ) (1,165 ) Voyage expenses - Cardiff Tankers Inc. (982 ) (1,297 ) General and administrative expenses: - Consultancy fees - Fabiana Services S.A. (1,854 ) (1,500 ) - Management fees - TMS Tankers Ltd. (4,354 ) (3,688 ) - Management fees - TMS Bulkers Ltd. (14,742 ) (12,683 ) - Consultancy fees - Vivid Finance Limited (5,922 ) (1,887 ) - Consultancy fees - Azara Services S.A. (1,250 ) (1,092 ) - Consultancy fees - Basset Holdings Inc. (616 ) (2,468 ) - Amortization of DryShips CEO stock based compensation (2,924 ) (3,328 ) - Amortization of Ocean Rig's CEO stock based compensation $ (653 ) $ (1,395 ) (Per day and per quarter information in the note below is expressed in United States Dollars/Euros) TMS Bulkers Ltd. - TMS Tankers Ltd.: Effective January 1, 2011, each of the Company's drybulk vessel-owning subsidiaries entered into new management agreements with TMS Bulkers Ltd. ("TMS Bulkers"), which replaced the Company's management agreements with Cardiff Marine Inc. ("Cardiff"), a related technical and commercial management company incorporated in Liberia, that were effective as of September 1, 2010 through December 31, 2010, and each of the Company's tanker ship-owning subsidiaries entered into new management agreements with TMS Tankers Ltd. ("TMS Tankers") (together, TMS Bulkers and TMS Tankers are hereinafter referred to as the "Managers"). The Managers are beneficially owned by Mr. George Economou, the Company's Chairman, President and Chief Executive Officer. TMS Bulkers provides 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 include operations, chartering, sale and purchase, post-fixture administration, accounting, freight invoicing and insurance. Each new vessel management agreement provides for a fixed management fee, the same fee as was charged by Cardiff under the Company's previous management agreements effective from September 1, 2010, of Euro 1,500 ($1,678 based on the Euro/U.S. Dollar exchange rate at June 30, 2015) per vessel per day, which is payable in equal monthly installments in advance and can 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 ($1,729 based on the Euro/U.S. Dollar exchange rate at June 30, 2015). Effective January 1, 2015, the fixed management fee was adjusted by 3% to Euro 1,591 ($1,780 based on the Euro/U.S. Dollar exchange rate at June 30, 2015). If TMS Bulkers is requested to supervise the construction of a newbuilding vessel, in lieu of the management fee, the Company will pay TMS Bulkers 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 $559 based on the Euro/U.S. Dollar exchange rate at June 30, 2015) per day. TMS Tankers provides comprehensive tanker ship management services, including technical supervision, such as repairs, maintenance and inspections, safety and quality, crewing and training as well as supply provisioning. TMS Tankers' commercial management services include operations, sale and purchase, post-fixture administration, accounting, freight invoicing and insurance. Under the management agreements, TMS Tankers is entitled to a daily management fee per vessel of Euro 1,700 ($1,902 based on the Euro/U.S. Dollar exchange rate at June 30, 2015), payable in equal monthly installments in advance and may 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%. Effective January 1, 2012, the fixed management fee was adjusted by 3% to Euro 1,751 ($1,959 based on the Euro/U.S. Dollar exchange rate at June 30, 2015). Effective January 1, 2015, the fixed management fee was adjusted by 3% to Euro 1,804 ($2,018 based on the Euro/U.S. Dollar exchange rate at June 30, 2015). TMS Tankers is entitled to a construction supervisory fee of 10% of the budgeted supervision cost for the vessels under construction, payable up front in lieu of the fixed management fee. Under their respective agreements, the Managers are also entitled to (i) a discretionary incentive 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. In the event that the management agreements are terminated for any reason other than a default by the Managers or change of control of the Company's ownership, the Company will be required to pay the management fee for a further period of three calendar months as from the date of termination. In the event of a change of control of the Company's ownership, the Company will be required to pay the Managers a termination payment, representing an amount equal to the estimated remaining fees payable to the Managers under the then current 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. Each management agreement has an initial term of five years and will be automatically renewed for a five-year period and thereafter extended in five-year increments, unless the Company provides notice of termination in the fourth quarter of the year immediately preceding the end of the respective term. Transactions with TMS Bulkers and TMS Tankers in Euros were settled on the basis of the average U.S. Dollar rate on the invoice date. George Economou On June 8, 2015, Ocean Rig successfully completed the offering of 28,571,428 shares of its common stock, par value $0.01 per share, at a price of $7.00 per share. As part of the offering, Mr. George Economou, has purchased $10,000, or 1,428,571 shares, of common stock in the offering at the public offering price. As of June 30, 2015, Mr. George Economou has a 4.7% shareholding in Ocean Rig. Cardiff Marine Inc Cardiff Drilling Inc Ocean Rig Management Inc. ("Ocean Rig Management"), a wholly-owned subsidiary of Ocean Rig, the Company's affiliate, entered into a Global Services Agreement with Cardiff Drilling Inc. ("Cardiff Drilling") a company controlled by Mr. George Economou, pursuant to which Ocean Rig Management engaged Cardiff Drilling to act as consultant on matters of chartering and sale and purchase transactions for the offshore drilling units operated by Ocean Rig. Under the Global Services Agreement, Cardiff Drilling, or its subcontractor, (i) provides consulting services related to the identification, sourcing, negotiation and arrangement of new employment for offshore assets of Ocean Rig and its subsidiaries; and (ii) identifies, sources, negotiates and arranges the sale or purchase of the offshore assets of Ocean Rig and its subsidiaries. In consideration of such services, Ocean Rig will pay Cardiff Drilling a fee of 1.0% in connection with employment arrangements and 0.75% in connection with sale and purchase activities. Costs from the Global Services Agreement are expensed in the unaudited interim condensed consolidated statements of operations or capitalized as a component of "Advances for drillships under construction and related costs" being a directly attributable cost to the construction, as applicable. Transactions with Cardiff Drilling in Euros were settled on the basis of the average USD rate on the invoice date. Fabiana Services S.A.: On January 12, 2011, the Compensation Committee approved a $4,000 bonus and 9,000,000 shares of the Company's common stock payable to Fabiana for the provision of the services of the Company's Chief Executive Officer Mr. George Economou during 2010. The shares were granted to Fabiana and vest over a period of eight years, with 1,000,000 shares vesting on the grant date and 1,000,000 shares to vest annually on December 31, 2011 through 2018, respectively. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $5.50 per share. On August 20, 2013, the Compensation Committee approved that a bonus in the form of 1,000,000 shares of the Company's common stock, with par value $0.01, be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2012. The shares vest over a period of two years with 333,334 shares vesting on the grant date, 333,333 shares vesting on August 20, 2014, and 333,333 vesting on August 20, 2015. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $2.01 per share. On August 19, 2014, the Compensation Committee approved that a bonus in the form of 1,200,000 shares of the Company's common stock, with par value $0.01, be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2013. The shares vest over a period of three years with 400,000 shares vesting on December 31, 2014, 400,000 shares vesting on December 31, 2015, and 400,000 vesting on December 31, 2016. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $3.26 per share. On December 30, 2014, the Compensation Committee approved that a bonus in the form of 2,100,000 shares of the Company's common stock, with par value $0.01, and a cash bonus of $1,000 be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2014. The shares vest over a period of three years with 700,000 shares vesting on December 31, 2015, 700,000 shares vesting on December 31, 2016, and 700,000 shares vesting on December 31, 2017. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $1.07 per share. The shares were issued during the first quarter of 2015. Azara Services S.A.: Executive Officer of Ocean Rig. The annual remuneration to be awarded to Azara under the consultancy agreement is $2,500 in cash. On August 20, 2013, Ocean Rig's Compensation Committee approved a sign-on bonus of $2,500 cash and 150,000 shares of Ocean Rig's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer of Ocean Rig. The shares vest over a period of two years with 50,000 shares vesting on the grant date, 50,000 shares vesting on August 20, 2014, and 50,000 vesting on August 20, 2015. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $17.56 per share. On August 19, 2014, Ocean Rig's Compensation Committee approved a bonus in the form of $2,500 cash and 150,000 shares of Ocean Rig's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer of Ocean Rig, rendered during 2013. The shares vest over a period of three years with 50,000 shares vesting on December 31, 2014, 50,000 shares vesting on December 31, 2015 and, 50,000 vesting on December 31, 2016. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the Ocean Rig shares on the grant date of $18.37 per share. On December 30, 2014, Ocean Rig's Compensation Committee approved a bonus in the form of $4,000 cash and 300,000 shares of Ocean Rig's common stock to Azara, relating to the services of Mr. George Economou as Chief Executive Officer, rendered during 2014. The shares vest over a period of three years with 100,000 shares vesting on December 31, 2015, 100,000 shares vesting on December 31, 2016, and 100,000 vesting on December 31, 2017. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of Ocean Rig shares on the grant date of $9.46 per share. Basset Holdings Inc.: Under the Consultancy Agreement effective from June 1, 2012, between a wholly owned subsidiary of Ocean Rig and Basset, a related party entity incorporated in the Republic of the Marshall Islands, Basset provides consultancy services relating to the services of Mr. Anthony Kandylidis in his capacity as Executive Vice President of Ocean Rig. The annual remuneration to be awarded to Basset under the consultancy agreement was Euro 0.9 million ($1.0 million based on the Euro/U.S. Dollar exchange rate at June 30, 2015). Effective January 1, 2015, the annual remuneration was reduced to Euro 0.45 million ($0.50 million based on the Euro/U.S. Dollar exchange rate as of June 30, 2015). On August 20, 2013, August 19, 2014 and December 30, 2014, the Compensation Committee of Ocean Rig approved that a cash bonus of $3,000, $4,000 and $3,000, respectively be paid to Basset for the contribution of Mr. Anthony Kandylidis for Executive Vice President's services. Basset is also the owner of 114,286 shares of Ocean Rig's common stock, as of June 30, 2015. Steel Wheel Investments Limited: Cardiff Tankers Inc Vivid Finance Limited: 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 is entitled to a fee equal to 0.20% on the total transaction amount. The consultancy agreement has a term of five years and may 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 DryShips and Vivid is in effect for the Company's tanker and drybulk shipping segments only. Effective January 1, 2013, Ocean Rig Management, a wholly-owned subsidiary of Ocean Rig, entered into a new consultancy agreement with Vivid, on the same terms and conditions as in the consultancy agreement, dated as of September 1, 2010, between DryShips and Vivid, except that under the new agreement, Ocean Rig is obligated to pay directly the fee of 0.20% to Vivid on the total transaction amount in consideration of the services provided by Vivid in respect of Ocean Rig's offshore drilling business, whereas under the consultancy agreement between DryShips and Vivid, this fee was paid by DryShips. Ocean Rig UDW Inc.: Dividends On February 24, 2015, Ocean Rigs' Board of Directors declared its fourth quarterly cash dividend with respect to the quarter ended December 31, 2014, of $0.19 per common share, to Ocean Rig shareholders of record as of March 10, 2015. The dividend was paid in March 2015. On May 6, 2015, Ocean Rig's Board of Directors declared its fifth quarterly cash dividend with respect to the quarter ended March 31, 2015, of $0.19 per common share, to Ocean Rig shareholders of record as of May 22, 2015. The dividend was paid in May 2015. During the six-month period ended June 30, 2015, the Company received dividends of $29,755 from Ocean Rig. On July 30, 2015, Ocean Rig's Board of Directors decided to suspend its quarterly dividend until market conditions improve. |
Other Current assets
Other Current assets | 6 Months Ended |
Jun. 30, 2015 | |
Other Assets [Abstract] | |
Other Current Assets | 5. Other Current Assets The amount of other current assets shown in the accompanying consolidated balance sheets is analyzed as follows: December 31, 2014 June 30, 2015 Inventories $ 20,304 $ 12,027 Deferred operating expenses 66,169 - Prepayments and advances 28,071 5,202 Insurance claims (Note 14) 7,201 1,596 Other 3,719 162 $ 125,464 $ 18,987 |
Advances for Drillships under C
Advances for Drillships under Construction and Related Costs | 6 Months Ended |
Jun. 30, 2015 | |
Advances for Drillships under Construction and Related Costs [Abstract] | |
Advances for Drillships under Construction and Related Costs: | 6. Advances for Drillships under Construction and Related Costs: The amounts shown in the accompanying consolidated balance sheets include milestone payments relating to the drillships building contracts with the shipyards, supervision costs and any material related expenses incurred during the construction periods, all of which are capitalized in accordance with the accounting policy discussed in Note 2 of the Consolidated Financial Statements for the year ended December 31, 2014. The movement of the account during the six-month period ended June 30, 2015, was as follows: June 30, 2015 Balance at December 31, 2014 $ 623,984 Advances for drillships under construction and related costs 465,649 Drillships delivered (728,393 ) Deconsolidation of Ocean Rig (361,240 ) Balance at June 30, 2015 $ - Ocean Rig From June 8, 2015, Ocean Rig has been considered as an affiliate entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig has been accounted for under the equity method, and its advances for drillships under construction and related costs are not consolidated in the Company's balance sheet as of June 30, 2015 and, consequently, additional disclosures for Ocean Rig's advances for 2015 have not been included. |
Vessels, Drilling Rigs, Drillsh
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net | 6 Months Ended |
Jun. 30, 2015 | |
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net [Abstract] | |
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net: | 7. Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net: The amounts in the accompanying consolidated balance sheets are analyzed as follows: Vessels: Cost Accumulated Depreciation Net Book Value Balance, December 31, 2014 $ 2,873,951 $ (732,334 ) $ 2,141,617 Vessel transfer to held for sale (530,640 ) - (530,640 ) Impairment loss (274,205 ) 133,637 (140,568 ) Depreciation - (54,184 ) (54,184 ) Balance, June 30, 2015 $ 2,069,106 $ (652,881) $ 1,416,225 On March 30, 2015, the Board of Directors of the Company approved the entering into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer, Mr. George Economou, to sell its four Suezmax tankers, Vilamoura, Lipari, Petalidi and Bordeira Belmar, Calida, Alicante, Mareta, Saga and Daytona, Petalidi Bordeira, Lipari Belmar The impairment review performed for the six month period ended June 30, 2015, indicated that one of the Company's vessels, with a carrying amount of $95,937 should be written down to its fair value as determined based on the valuations of the independent valuators, resulting in an impairment charge of $83,937, which was included in the accompanying consolidated statement of operations for the six month period ended June 30, 2015 (Note 11). On August 6, 2015 and August 7, 2015, the Aframax tankers Saga and Mareta Drilling rigs, drillships, machinery and equipment: Ocean Rig From June 8, 2015, Ocean Rig has been considered as an affiliate entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig has been accounted for under the equity method, and its drilling rigs, drillships, machinery and equipment are not consolidated in the Company's balance sheet as of June 30, 2015 and, consequently, additional disclosures for Ocean Rig's fixed assets for 2015 have not been included. Cost Accumulated Depreciation Net Book Value Balance, December 31, 2014 $ 7,393,173 $ (1,133,426 ) $ 6,259,747 Additions 806,353 - 806,353 Depreciation - (154,481 ) (154,481 ) Deconsolidation of Ocean Rig (8,199,526) 1,287,907 (6,911,619) Balance June 30, 2015 $ - $ - $ - As of June 30, 2015, all of the Company's operating vessels have been pledged as collateral to secure the bank loans (Note 10). |
Other Non-Current Assets
Other Non-Current Assets | 6 Months Ended |
Jun. 30, 2015 | |
Other Non-Current Assets [Abstract] | |
Other Non-Current Assets: | 8. Other Non-Current Assets: The amounts included in the accompanying consolidated balance sheets are as follows: December 31, 2014 June 30, 2015 Deferred operating expenses $ 43,327 $ - Security deposits for derivatives 550 550 Prepaid investments 57,910 - Intangible assets, net 4,732 - Above-market acquired time charter contracts 1,373 - Total $ 107,892 $ 550 |
Investment in Affiliates
Investment in Affiliates | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Affiliates: | 9. Investment in Affiliates: On June 8, 2015, following an equity offering of Ocean Rig, the Company's ownership decreased to 47.2% and accordingly the Company lost its controlling financial interest and deconsolidated Ocean Rig from its financial statements. From that date onwards, Ocean Rig has been considered as an affiliate entity and not as a controlled subsidiary of the Company, and the investment in Ocean Rig has been accounted for under the equity method due to the Company's significant influence over Ocean Rig. On June 8, 2015, based on the equity method, the Company recorded an investment in Ocean Rig of $514,047, which represents the fair value of the common stock that was held by the Company on such date, with a closing market price of $6.96 per share. As at June 30, 2015, the market value of the investment was $378,888 based on the Ocean Rig closing price of $5.13.On June 8, 2015, the Company calculated a loss due to deconsolidation of $1,347,106, which was calculated as the fair value of the Company's equity method investment in Ocean Rig less the Company's 47.2% interest in Ocean Rig's net assets on June 8, 2015. The Company's equity in the earnings of Ocean Rig is shown in the accompanying condensed consolidated statements of income for the six month period ended June 30, 2015 as “Equity in net earnings of affiliate” and amounted to a gain of $8,851. The affiliate entity, which is incorporated in the Marshall Islands and is accounted for under the equity method, is the following: Entity Participation % June 30, 2015 Ocean Rig UDW Inc 47.2% The summarized financial information of the affiliate is as follows: June 30, 2015 Current assets $ 1,399,663 Non-current assets 7,341,461 Current liabilities 448,142 Non-current liabilities $ 4,852,448 Six-months ended June 30, 2015 Service revenue, net $ 835,299 Net income $ 114,275 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt: | 10. Long-term Debt: The amount of long-term debt shown in the accompanying consolidated balance sheets is analyzed as follows: December 31, 2014 June 30, 2015 6.5% Drill Rigs Senior Secured Notes 800,000 - 7.25% Ocean Rig Senior Unsecured Notes 500,000 - Secured Credit Facilities - Drybulk Segment 685,410 615,954 Secured Credit Facilities - Tanker Segment 277,913 264,880 Secured Bridge Credit Facility 200,000 135,000 $1.9 billion Secured Term Loan B Facility - Drilling Segment 1,876,250 - $1.3 billion Senior Secured Term Loan B Facility - Drilling Segment 1,296,750 - Less: Deferred financing costs (118,710 ) (14,060 ) Total debt 5,517,613 1,001,774 Less: Current portion (1,165,021 ) (1,001,774) Long-term portion $ 4,352,592 $ - Ocean Rig Loans and Notes From June 8, 2015, Ocean Rig has been considered as an affiliate entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig has been accounted for under the equity method, and its long term debt is not consolidated in the Company's balance sheet as of June 30, 2015 and, consequently, additional disclosures for Ocean Rig's loans for 2015 have not been included. Term bank loans and credit facilities The bank loans are payable in U.S. Dollars in quarterly and semi-annual installments with balloon payments due at maturity between July 2015 and June 2025. Interest rates on the outstanding loans as at June 30, 2015, are based on LIBOR plus a margin. On November 14, 2014, the Company entered into a facility agreement with ABN AMRO, for a secured bridge loan facility in an amount of $200,000. The loan is repayable through a single repayment installment. In connection with the ABN AMRO facility, on November 18, 2014, as required by that facility, Ocean Rig filed a prospectus supplement covering up to 78,301,755 of its common shares held by DryShips or its pledgees. Of the shares registered, 45,129,069 Ocean Rig shares were initially pledged by the Company to ABN AMRO under the terms of the ABN AMRO facility, which requires collateral coverage based on the prevailing 30-day Volume Weighted Average Price ("VWAP") at draw down. On January 9, 2015 and March 19, 2015, respectively, the Company provided additional security in relation to the ABN AMRO facility in the form of 8,000,000 and 12,500,00 Ocean Rig shares owned by the Company. On January 20, 2015, February 2, 2015, May 29, 2015, July 13, 2015 and July 29, 2015 the Company made five prepayments of $10,000, $5,000, $50,000, $20,000 and $15,000 respectively, under this loan agreement. On June 2, 2015, 12,500,000 shares of Ocean Rig pledged by the Company to ABN AMRO were released and returned to the Company. On May 26, 2015 and July 10, 2015, the Company made two prepayments of $15,000 and $10,034, respectively, under a loan agreement dated October 29, 2014. On July 16, 2015, July 21, 2015, July 24, 2015 and July 27, 2015, the vessels Petalidi Bordeira Lipari Belmar On July 29, 2015, the Company repaid in full the outstanding amount of $37,325 under the Secured Term Loan facility, dated July 23, 2008. On August 6, 2015 and August 7, 2015, the Aframax tankers Saga and Mareta $12.5 million Sellers credit On March 15, 2013, the Company reached an agreement with a far eastern shipyard for a $12,500 sellers credit to the Company. This credit was repayable to the yard in one bullet repayment two years after date of drawdown and bore interest at 3% per annum. The Company agreed to provide a pledge of 1,602,500 shares in Ocean Rig that the Company owns, which pledge would be automatically released upon repayment of the credit. During March 2013, the Company drew down the amount of $12,500. On January 8, 2015, this credit was repaid in full by the Company. On the date of repayment and termination of the loan agreement, the Company was released from its obligations and 1,602,500 shares of Ocean Rig pledged by the Company to the shipyard were released and returned to the Company. The aggregate available undrawn amounts under the Company's facilities at December 31, 2014 and June 30, 2015, were $0. The weighted-average interest rates on the above outstanding debt were: 6.57% for the six-month period ended June 30, 2014 and 5.95% for the six-month period ended June 30, 2015. The above loans are secured by a first priority mortgage over the Company's vessels, corporate guarantees, first priority assignments of all freights, earnings, insurances and requisition compensation and pledges of the shares of capital stock of certain of the Company's subsidiaries. The loans contain covenants that restrict, without the bank's prior consent, changes in management and ownership of the vessels, the incurrence of additional indebtedness and mortgages of vessels and changes in the general nature of the Company's business. In addition, some of the vessels' owning companies are not permitted to pay any dividends to DryShips nor DryShips to its shareholders without the lender's prior consent. The loans also contain certain financial covenants relating to the Company's financial position, operating performance and liquidity, including maintaining working capital above a certain level. The Company's secured credit facilities impose operating and negative covenants on the Company and its subsidiaries. These covenants may limit DryShips' subsidiaries' ability to, among other things, without the relevant lenders' prior consent (i) incur additional indebtedness, (ii) change the flag, class or management of the vessel 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, 2015, the Company was not in compliance with certain loan-to-value ratios contained in certain of its loan agreements. These loan-to-value ratio shortfalls do not constitute events of default that would automatically trigger the full repayment of the loan. Based on the loan agreements, loan-to-value shortfalls may be remedied by the Company by providing additional collateral or repaying the amount of the shortfall. In addition, as of June 30, 2015, the Company was in breach of certain financial covenants, contained in the Company's loan agreements. Furthermore, the Company is in discussions to extend the maturity of a certain loan agreement which has lapsed. As a result of these incidents of non-compliance and of the cross default provisions contained in all of the Company's bank loan agreements, and in accordance with guidance related to the classification of obligations that are callable by the creditor, the Company has classified all of the amounts outstanding under its bank loans that were in breach as of June 30, 2015, amounting to $1,015,834, as current at June 30, 2015. Total interest incurred on long-term debt and amortization of debt issuance costs, including capitalized interest, for the six-month periods ended June 30, 2014 and 2015, amounted to $ 172,178, and $153,632, 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, 2015, including balloon payments, totaling $1,015,834 due through June 2016, are as follows: June 30, 2016 $ 1,015,834 Total principal payments 1,015,834 Less: Deferred financing costs (14,060 ) Total debt $ 1,001,774 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements: | 11. 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 statement of financial position. Effective January 1, 2011, the Company removed the designation of the cash flow hedges and discontinued hedge accounting for the associated interest rate swaps. 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. The Company has entered in the past into forward freight agreements ("FFA") and foreign currency forward contracts in order to manage risks associated with fluctuations in charter rates and foreign currencies, respectively. All of the Company's derivative transactions are entered into for risk management purposes. As of June 30, 2015, the Company had 14 interest rate swap agreements outstanding, of $512,759 notional amount, maturing from July 2015 through July 2017. Fair Values of Derivative Instruments in the Balance Sheets: Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Interest rate swaps Financial instruments-current assets $ - $ - Financial instruments-current liabilities $ 30,447 $ 8,757 Interest rate swaps Financial instruments-non-current assets 11,086 380 Financial instruments-non-current liabilities 10,420 62 Total derivatives not designated as hedging instruments $ 11,086 $ 380 $ 40,867 $ 8,819 Total derivatives $ 11,086 $ 380 Total derivatives $ 40,867 $ 8,819 During the six-month periods ended June 30, 2014 and 2015, the losses transferred from accumulated other comprehensive loss to the unaudited interim condensed consolidated statements of operations were $277 and $258, respectively. Amount of Gain/(Loss) Six-month period ended June 30, Derivatives not designated as hedging instruments Location of Loss Recognized 2014 2015 Interest rate swaps Loss on interest rate swaps $ (12,403 ) $ (11,448 ) Total $ (12,403 ) $ (11,448) The carrying amounts of cash and cash equivalents, restricted cash, trade accounts receivable, accounts payable, other current 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. 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 carrying value of non-current restricted cash receiving floating interest rate approximates the fair value. 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 $120,000 Loan from Affiliate approximately is the same as its fair market value, compared to a carrying amount net of financing fees of $78,306. 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. The following table summarizes the valuation of assets and liabilities measured at fair value on a recurring basis as of the valuation date. June 30, 2015 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Recurring measurements: Interest rate swaps - asset position $ 380 $ - $ 380 $ - Interest rate swaps - liability position (8,819 ) - (8,819 ) - Total $ (8,439 ) $ - $ (8,439 ) $ - The following table summarizes the valuation of assets measured at fair value on a non-recurring basis as of the valuation date. Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Impairment loss Deconsolidation loss Non-Recurring measurements: Investment in affiliate (Note 9) 514,047 - - - (1,347,106) Assets held for sale - 536,000 - (56,631 ) - Vessels - 12,000 - (83,937) - Total 514,047 548,000 - (140.568) (1,347,106 ) In accordance with the provisions of relevant guidance, ten long lived assets held for sale with a carrying amount of $587,271, were written down to their fair value as determined based on the agreed sale prices, resulting in an impairment charge of $56,631, which was included in the accompanying unaudited interim condensed consolidated statement of operations for the six month period ended June 30, 2015. The impairment review performed for the six month period ended June 30, 2015, indicated that one of the Company's vessels, with a carrying amount of $95,937 should be written down to its fair value as determined based on the valuations of the independent valuators, resulting in an impairment charge of $83,937, which was included in the accompanying consolidated statement of operations for the six month period ended June 30, 2015 (Note 7). |
Common Stock and Additional Pai
Common Stock and Additional Paid-in Capital | 6 Months Ended |
Jun. 30, 2015 | |
Common Stock and Additional Paid-in Capital | |
Common Stock and Additional Paid-in Capital: | 12. Common Stock and Additional Paid-in Capital: Net loss Attributable to DryShips and Transfers to the Non-controlling Interest: The following table represents the effects of any changes in DryShips ownership interest in a subsidiary on the equity attributable to the shareholders of DryShips. Six-month period ended June 30, 2014 2015 Net loss attributable to DryShips Inc. $ (40,185 ) $ (1,499,480) Transfers to the non-controlling interest: Decrease in DryShips Inc. equity for reduction in subsidiary ownership (1,924 ) (49,275 ) Net transfers to the non-controlling interest (1,924 ) (49,275 ) Net loss attributable to DryShips Inc. and transfers to the non-controlling interest $ (42,109 ) $ (1,548,755) |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2015 | |
Equity Incentive Plan [Abstract] | |
Equity Incentive Plan: | 13. Equity Incentive Plan: DryShips Inc. On January 12, 2011, 9,000,000 shares of the non-vested common stock out of 21,834,055 shares reserved under the Plan were granted to Fabiana as a bonus for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2010. The shares were granted to Fabiana and vest over a period of eight years, with 1,000,000 shares vesting on the grant date and 1,000,000 shares vesting annually on December 31, 2011 through 2018, respectively. The stock-based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $5.50 per share. As of June 30, 2015, 5,000,000 of these shares have been vested. On August 20, 2013, the Compensation Committee approved that a bonus in the form of 1,000,000 shares of the Company's common stock, with par value $0.01, be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2012. The shares vest over a period of two years, with 333,334 shares vesting on the grant date, 333,333 shares vesting on August 20, 2014, and 333,333 vesting on August 20, 2015. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $2.01 per share. As of June 30, 2015, 666,667 of these shares have been vested. On August 19, 2014, the Compensation Committee approved that a bonus in the form of 1,200,000 shares of the Company's common stock, with par value $0.01, be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2013. The shares vest over a period of three years, with 400,000 shares vesting on December 31, 2014, 400,000 shares vesting on December 31, 2015, and 400,000 vesting on December 31, 2016. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $3.26 per share. As of June 30, 2015, 400,000 of these shares have been vested. On December 30, 2014, the Compensation Committee approved that a bonus in the form of 2,100,000 shares of the Company's common stock, with par value $0.01, be granted to Fabiana for the contribution of Mr. George Economou for Chief Executive Officer's services rendered during 2014. The shares vest over a period of three years, with 700,000 shares vesting on December 31, 2015, 700,000 shares vesting on December 31, 2016, and 700,000 vesting on December 31, 2017. The stock based compensation is being recognized to expenses over the vesting period and based on the fair value of the shares on the grant date of $1.07 per share. As of June 30, 2015, none of these shares have been vested. A summary of the status of the Company's non-vested shares as of December 31, 2014 and the movement during the six-month period ended June 30, 2015, is presented below. There were no shares granted and no shares forfeited in the six-month period ended June 30, 2015. Number of non-vested shares Weighted average grant date fair value per non-vested shares Balance December 31, 2014 7,233,333 $ 3.81 Granted - - Vested - - Balance June 30, 2015 7,233,333 $ 3.81 As of December 31, 2014 and June 30, 2015, there was $12,589 and $9,261, 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 four years. The amounts of $2,924 and $3,328, are recorded in "General and administrative expenses", in the accompanying unaudited interim condensed consolidated statements of operations for the six-month periods ended June 30, 2014 and 2015, respectively. The total fair value of shares vested during the six-month periods ended June 30, 2014 and 2015, was $0. From June 8, 2015, Ocean Rig has been considered as an affiliate entity and not as a controlled subsidiary of the Company. As a result, Ocean Rig has been accounted for under the equity method and consequently, additional disclosures for Ocean Rig's equity incentive plan for 2015 have not been included. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitment and Contingencies [Abstract] | |
Commitment and Contingencies: | 14. Commitment and Contingencies: 14.1 Legal proceedings Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the shipping and drilling 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 though 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. 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. 14.2 Contractual charter revenue Future minimum contractual charter revenue, based on vessels committed to non-cancelable, long-term time contracts as of June 30, 2015, amount to $87,171 for the twelve months ending June 30, 2016, $84,398 for the twelve months ending June 30, 2017, $84,398 for the twelve months ending June 30, 2018, $50,990 for the twelve months ending June 30, 2019 and $7,968 for the twelve months ending June 30, 2020. These amounts do not include any assumed off-hire. Under the June 25, 2015, agreement discussed below, the Company amended 11 charter agreements with significantly lower charter rates. Under seven of the Company's charter agreements, the charterer had the option to (i) acquire the vessels at fair market value as determined by two independent brokers, at the date that the options were exercised, less $5,000 per vessel or, (ii) to require a cash payout of $5,000 per charter agreement in which case the charter agreement would automatically be terminated on the date of completion of the current voyage. These options were exercisable beginning late March 2015 and throughout the term of the charter agreements which expired through 2020. On June 25, 2015, the Company concluded an agreement with the charterer under which, the charterer agreed to forgo the exercise of the purchase option under the seven charter agreements in exchange for a reduction of $35,000 in overdue receivables, $5,000 cash payment to the Company and write off the remaining $16,471 in overdue receivables as of May 31, 2015, against to “Voyage revenues”. Out of the $35,000 the $6,759 has been amortized, while the remaining $28,241 were written off as “Loss on contract cancellation”. As part of the transaction, new time charters were agreed for a period of over four years. |
Interest and Finance Costs
Interest and Finance Costs | 6 Months Ended |
Jun. 30, 2015 | |
Interest and Finance Costs [Abstract] | |
Interest and Finance Costs: | 15. Interest and Finance Costs: The amounts in the accompanying unaudited interim condensed consolidated statements of operations are analyzed as follows: Six-month period ended June 30, 2014 2015 Interest incurred on long-term debt $ 153,727 $ 140,738 Interest and amortization on loan from affiliate - 816 Amortization and write-off of financing fees 18,451 12,078 Discount on receivable from drilling contract - 4,048 Amortization of convertible notes discount 23,658 - Amortization of share lending agreement-note issuance costs 1,475 - Premium on 9.5% Senior Unsecured Notes 26,546 - Other 3,076 1,217 Capitalized interest (19,400) (12,060 ) Total $ 207,533 $ 146,837 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Segment Information: | 16. Segment Information: The Company has currently two reportable segments from which it derives its revenues: Drybulk and Tanker segments, and until the deconsolidation of Ocean Rig on June 8, 2015, the Company had also a Drilling segment. 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 Drilling business segment consists of the deepwater drilling rig services of the drilling rigs and drillships through ownership of drilling rigs and drillships. The Tanker business segment consists of vessels for the transportation of crude and refined petroleum cargoes. The tables below present information about the Company's reportable segments as of and for the six-month periods ended June 30, 2014 and 2015. 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 measures segment performance based on net income/(loss). Summarized financial information concerning each of the Company's reportable segments is as follows: Drybulk Segment Tanker Segment Drilling Rigs Segment Total Six-month Six-month Six-month Six-month 2014 2015 2014 2015 2014 2015 2014 2015 Revenues from external customers $ 103,024 $ 64,609 $ 79,938 $ 104,879 $ 802,197 $ 725,805 $ 985,159 $ 895,293 Income tax expense - - - - (23,933 ) (36,931 ) (23,933 ) (36,931 ) Net income/(loss) (79,376 ) (201,210 ) (1,380 ) (16,513 ) 68,324 (1,242,728 ) (12,432 ) (1,460,451) December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 Total assets $ 1,741,235 $ 2,018,930 $ 652,375 $ 597,006 $ 8,095,212 $ - $ 10,488,822 $ 2,615,936 A reconciliation of total segment assets with the consolidated amounts is as follows: Total Assets December 31, 2014 Total Assets for reportable segments 10,488,822 Elimination of intersegment receivables (117,219 ) Total consolidated Assets 10,371,603 |
Losses per Share
Losses per Share | 6 Months Ended |
Jun. 30, 2015 | |
Losses per Share [Abstract] | |
Losses per Share: | 17. Losses per Share: The Company calculates basic and diluted losses per share as follows: Six-month period ended June 30, 2014 2015 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 (40,185 ) - - (1,499,480) - - Less: Allocation of undistributed earnings to non-vested stock (115 ) - - (265 ) - - Basic and diluted LPS Loss attributable to common stockholders $ (40,300 ) 411,363,240 $ (0.10 ) $ (1,499,745) 664,830,988 $ (2.26 ) For the six-month periods ended June 30, 2014 and 2015 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. |
Non-controlling Interests
Non-controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Non-controlling Interests (Abstract) | |
Non-controlling Interests: | 18. Non-controlling Interests: The following table represents the changes in DryShips non-controlling interests: Six-month period ended June 30, 2014 2015 Balance at the beginning of the period $ 1,218,062 $ 1,297,567 Net income/(loss) for the period 27,753 39,029 Decrease in DryShips equity for reduction in subsidiary ownership (Notes 12 and 13) 1,719 50,023 Amortization of stock based compensation 672 841 Dividends declared (10,246 ) (20,525 ) Other equity components - 518 Other comprehensive income 311 115 Deconsolidation of Ocean Rig - (1,367,568) Balance at the end of the period $ 1,238,271 $ - |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |
Income Taxes: | 19. Income Taxes: Neither the Republic of the Marshall Islands nor Malta imposes a tax on international shipping income earned by a "non-resident" corporation. Under the laws of the Republic of the Marshall Islands and Malta, the countries in which the Company and the vessels owned by subsidiaries of the Company are registered and 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 Marshall Islands and Malta, 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 will be exempt from United States federal income taxation with respect to U.S.-source shipping income if they satisfy the 50% Ownership Test. The Company believes that each of the Company's Marshall Islands and Malta ship-owning subsidiaries will be entitled to exemption from U.S. federal income tax in respect of their U.S. source shipping income. Ocean Rig operates through its various subsidiaries in a number of countries throughout the world. Income taxes have been provided based upon the tax laws and rates in the countries in which operations are conducted and income is earned. The countries in which Ocean Rig operates have taxation regimes with varying nominal rates, deductions, credits and other tax attributes. Consequently, there is not an expected relationship between the provision for/or benefit from income taxes and income or loss before income taxes. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events | |
Subsequent Events: | 20. Subsequent Events: There are no material events after the most current balance sheet date, other than those discussed above, to be disclosed. |
Significant Accounting Polici28
Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Additional accounting policies | Investments in Affiliates: Affiliates included in the financial statements accounted for under the equity method (i) Ocean Rig and its subsidiaries (ownership interest as of June 30, 2015 was 47.2%). |
Transactions with Related Par29
Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Transactions with Related Parties | |
Schedule of Related Party Transactions | December 31, 2014 June 30, 2015 Balance Sheet Due to related party - Cardiff Tankers Inc. $ (266 ) $ (220 ) Due to related party - Fabiana Services S.A. (1,000 ) - Due to related party - Vivid Finance Limited (164 ) - Due to related party - Cardiff Drilling Inc. (4,287 ) - Due to related party - Azara Services S.A. (4,000 ) - Due to related party - Basset Holding Inc. (3,000 ) - Due to an affiliate company - Ocean Rig UDW Inc. - (78,306 ) Due to related party - Deposits for vessel sales - (49,000 ) Due to related party - Total $ (12,717 ) $ (127,526) Due from related party - TMS Bulkers Ltd. 28,318 28,395 Due from related party - TMS Tankers Ltd. 9,903 11,100 Due from related party - Total $ 38,221 $ 39,495 Advances for drillships under construction - Cardiff Drilling Inc., for the year/period 1,546 - Vessels, net -TMS Bulkers Ltd./ TMS Tankers Ltd., for the year/period 530 - Drilling rigs, drillships, machinery and equipment, net -Cardiff Drilling Inc., for the year/period 2,885 - Six-month period ended June 30, Statement of Operations 2014 2015 Service revenues, net - Cardiff Drilling Inc. $ 7,729 $ 7,366 Voyage expenses - TMS Tankers Ltd. (982 ) (1,297 ) Voyage expenses - TMS Bulkers Ltd. (1,401 ) (1,165 ) Voyage expenses - Cardiff Tankers Inc. (982 ) (1,297 ) General and administrative expenses: - Consultancy fees - Fabiana Services S.A. (1,854 ) (1,500 ) - Management fees - TMS Tankers Ltd. (4,354 ) (3,688 ) - Management fees - TMS Bulkers Ltd. (14,742 ) (12,683 ) - Consultancy fees - Vivid Finance Limited (5,922 ) (1,887 ) - Consultancy fees - Azara Services S.A. (1,250 ) (1,092 ) - Consultancy fees - Basset Holdings Inc. (616 ) (2,468 ) - Amortization of DryShips CEO stock based compensation (2,924 ) (3,328 ) - Amortization of Ocean Rig's CEO stock based compensation $ (653 ) $ (1,395 ) |
Other Current assets (Tables)
Other Current assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Assets [Abstract] | |
Other Current Assets | December 31, 2014 June 30, 2015 Inventories $ 20,304 $ 12,027 Deferred operating expenses 66,169 - Prepayments and advances 28,071 5,202 Insurance claims (Note 14) 7,201 1,596 Other 3,719 162 $ 125,464 $ 18,987 |
Advances for Vessels and Drills
Advances for Vessels and Drillships under Construction and Related Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Advances for Drillships under Construction and Related Costs [Abstract] | |
Advances for Drillships under Construction and Related Costs: | June 30, 2015 Balance at December 31, 2014 $ 623,984 Advances for drillships under construction and related costs 465,649 Drillships delivered (728,393 ) Deconsolidation of Ocean Rig (361,240 ) Balance at June 30, 2015 $ - |
Vessels, Drilling Rigs, Drill32
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net [Abstract] | |
Vessels: | Cost Accumulated Depreciation Net Book Value Balance, December 31, 2014 $ 2,873,951 $ (732,334 ) $ 2,141,617 Vessel transfer to held for sale (530,640 ) - (530,640 Impairment loss (274,205 ) 133,637 (140,568 Depreciation - (54,184 ) (54,184 ) Balance, June 30, 2015 $ 2,069,106 $ (652,881) $ 1,416,225 |
Drilling rigs, drillships, machinery and equipment: | Cost Accumulated Depreciation Net Book Value Balance, December 31, 2014 $ 7,393,173 $ (1,133,426 ) $ 6,259,747 Additions 806,353 - 806,353 Depreciation - (154,481 ) (154,481 ) Deconsolidation of Ocean Rig (8,199,526) 1,287,907 (6,911,619) Balance June 30, 2015 $ - $ - $ - |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Non-Current Assets [Abstract] | |
Other Non-Current Assets: | December 31, 2014 June 30, 2015 Deferred operating expenses $ 43,327 $ - Security deposits for derivatives 550 550 Prepaid investments 57,910 - Intangible assets, net 4,732 - Above-market acquired time charter contracts 1,373 - Total $ 107,892 $ 550 |
Investment in Affiliates (Table
Investment in Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments to Affiliates | Entity Participation % June 30, 2015 Ocean Rig UDW Inc 47.2% |
Financial information of affiliate companies, balance sheet | June 30, 2015 Current assets $ 1,399,663 Non-current assets 7,341,461 Current liabilities 448,142 Non-current liabilities $ 4,852,448 |
Financial information of affiliate companies, income statement | Six-months ended June 30, 2015 Service revenue, net $ 835,299 Net income $ 114,275 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt | December 31, 2014 June 30, 2015 6.5% Drill Rigs Senior Secured Notes 800,000 - 7.25% Ocean Rig Senior Unsecured Notes 500,000 - Secured Credit Facilities - Drybulk Segment 685,410 615,954 Secured Credit Facilities - Tanker Segment 277,913 264,880 Secured Bridge Credit Facility 200,000 135,000 $1.9 billion Secured Term Loan B Facility - Drilling Segment 1,876,250 - $1.3 billion Senior Secured Term Loan B Facility - Drilling Segment 1,296,750 - Less: Deferred financing costs (118,710 ) (14,060 ) Total debt 5,517,613 1,001,774 Less: Current portion (1,165,021 ) (1,001,774) Long-term portion $ 4,352,592 $ - |
Principal payments | June 30, 2016 $ 1,015,834 Total principal payments 1,015,834 Less: Deferred financing costs (14,060 ) Total debt $ 1,001,774 |
Financial Instruments and Fai36
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Values of Derivative Instruments in the Balance Sheets: | Asset Derivatives Liability Derivatives Derivatives not designated as hedging instruments Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Balance Sheet Location December 31, 2014 Fair value June 30, 2015 Fair value Interest rate swaps Financial instruments-current assets $ - $ - Financial instruments-current liabilities $ 30,447 $ 8,757 Interest rate swaps Financial instruments-non-current assets 11,086 380 Financial instruments-non-current liabilities 10,420 62 Total derivatives not designated as hedging instruments $ 11,086 $ 380 $ 40,867 $ 8,819 Total derivatives $ 11,086 $ 380 Total derivatives $ 40,867 $ 8,819 |
Effect of derivative instruments on the Consolidated Statements of Operations | Amount of Gain/(Loss) Six-month period ended June 30, Derivatives not designated as hedging instruments Location of Loss Recognized 2014 2015 Interest rate swaps Loss on interest rate swaps $ (12,403 ) $ (11,448 ) Total $ (12,403 ) $ (11,448) |
Fair Value, assets measured on a recurring and non-recurring basis | June 30, 2015 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Recurring measurements: Interest rate swaps - asset position $ 380 $ - $ 380 $ - Interest rate swaps - liability position (8,819 ) - (8,819 ) - Total $ (8,439 ) $ - $ (8,439 ) $ - Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Impairment loss Deconsolidation loss Non-Recurring measurements: Investment in affiliate(Note 9) 514,047 - - - (1,347,106) Assets held for sale - 536,000 - (56,631 )- Vessels - 12,000 - (83,937 )- Total 514,047 548,000 - (140,568) (1,347,106) |
Common Stock and Additional P37
Common Stock and Additional Paid-in Capital (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Common Stock and Additional Paid-in Capital | |
Net Income Attributable to DryShips Inc. and Transfers to the Non-controlling Interest | Six-month period ended June 30, 2014 2015 Net loss attributable to DryShips Inc. $ (40,185 ) $ (1,499,480) Transfers to the non-controlling interest: Decrease in DryShips Inc. equity for reduction in subsidiary ownership (1,924 ) (49,275 ) Net transfers to the non-controlling interest (1,924 ) (49,275 ) Net loss attributable to DryShips Inc. and transfers to the non-controlling interest $ (42,109 ) $ (1,548,755) |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Incentive Plan [Abstract] | |
Equity Incentive Plan | Number of non-vested shares Weighted average grant date fair value per non-vested shares Balance December 31, 2014 7,233,333 $ 3.81 Granted - - Vested - - Balance June 30, 2015 7,233,333 $ 3.81 |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Interest and Finance Costs [Abstract] | |
Interest and Finance Costs | Six-month period ended June 30, 2014 2015 Interest incurred on long-term debt $ 153,727 $ 140,738 Interest and amortization on loan from affiliate - 816 Amortization and write-off of financing fees 18,451 12,078 Discount on receivable from drilling contract - 4,048 Amortization of convertible notes discount 23,658 - Amortization of share lending agreement-note issuance costs 1,475 - Premium on 9.5% Senior Unsecured Notes 26,546 - Other 3,076 1,217 Capitalized interest (19,400) (12,060 ) Total $ 207,533 $ 146,837 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Information | |
Reporting Information by Segment | Drybulk Segment Tanker Segment Drilling Rigs Segment Total Six-month Six-month Six-month Six-month 2014 2015 2014 2015 2014 2015 2014 2015 Revenues from external customers $ 103,024 $ 64,609 $ 79,938 $ 104,879 $ 802,197 $ 725,805 $ 985,159 $ 895,293 Income tax expense - - - - (23,933 ) (36,931 ) (23,933 ) (36,931 ) Net income/(loss) (79,376 ) (201,210 ) (1,380 ) (16,513 ) 68,324 (1,242,728 ) (12,432 ) (1,460,451) December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 Total assets $ 1,741,235 $ 2,018,930 $ 652,375 $ 597,006 $ 8,095,212 $ - $ 10,488,822 $ 2,615,936 |
Segment Information Reconciliation | Total Assets December 31, 2014 Total Assets for reportable segments 10,488,822 Elimination of intersegment receivables (117,219 ) Total consolidated Assets 10,371,603 |
Losses per Share (Tables)
Losses per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Losses per Share [Abstract] | |
Losses per Share | Six-month period ended June 30, 2014 2015 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 (40,185 ) - - (1,499,480) - - Less: Allocation of undistributed earnings to non-vested stock (115 ) - - (265 ) - - Basic and diluted LPS Loss attributable to common stockholders $ (40,300 ) 411,363,240 $ (0.10 ) $ (1,499,745) 664,830,988 $ (2.26 ) |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Non-controlling Interests (Abstract) | |
Non controlling interests | Six-month period ended June 30, 2014 2015 Balance at the beginning of the period $ 1,218,062 $ 1,297,567 Net income/(loss) for the period 27,753 39,029 Decrease in DryShips equity for reduction in subsidiary ownership (Notes 12 and 13) 1,719 50,023 Amortization of stock based compensation 672 841 Dividends declared (10,246 ) (20,525 ) Other equity components - 518 Other comprehensive income 311 115 Deconsolidation of Ocean Rig - (1,367,568) Balance at the end of the period $ 1,238,271 $ - |
Basis of Presentation and Gen43
Basis of Presentation and General Information (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Basis of Presentation and General Information | |
VIE, total assets | $ 64,314 |
VIE, total liabilities | 65,358 |
VIE, net assets | $ (1,044) |
Significant Accounting Polici44
Significant Accounting Policies (Details) | Jun. 30, 2015 |
Significant Accounting Policies [Abstract] | |
Ownership interest in Ocean Rig | 47.20% |
Going Concern (Details)
Going Concern (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Loan agreements reclassified as current | $ 1,015,834 | |
Working capital deficit | 491,442 | |
Vessels held for sale | $ 530,640 | $ 0 |
Transactions with Related Par46
Transactions with Related Parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Due to related party | $ (49,220) | $ (12,717) |
Due to an affiliate company | (78,306) | 0 |
Due to related party - Total | (127,526) | (12,717) |
Due from related party | 39,495 | 38,221 |
Advances for drillships under construction for the year/period | 0 | 623,984 |
Drilling rigs, drillships, machinery and equipment, net, for the year/period | 0 | 6,259,747 |
Accounts payables and other liabilities - Deposits for vessel sales | 14,031 | 97,608 |
Cardiff Tankers Inc. | ||
Due to related party | (220) | (266) |
Fabiana Services S.A | ||
Due to related party | 0 | (1,000) |
Vivid Finance Limited | ||
Due to related party | 0 | (164) |
Cardiff Drilling Inc. | ||
Due to related party | 0 | (4,287) |
Advances for drillships under construction for the year/period | 0 | 1,546 |
Drilling rigs, drillships, machinery and equipment, net, for the year/period | 0 | 2,885 |
Azara Services S.A. | ||
Due to related party | 0 | (4,000) |
Basset Holdings Inc. | ||
Due to related party | 0 | (3,000) |
TMS Bulkers Ltd. | ||
Due from related party | 28,395 | 28,318 |
TMS Tankers Ltd. | ||
Due from related party | 11,100 | 9,903 |
TMS Bulkers Ltd./ TMS Tankers Ltd. | ||
Vessels, net for the year/period | 0 | 530 |
Related Party | ||
Due to related party - Deposits for vessel sales | (49,000) | 0 |
Ocean Rig UDW Inc. | ||
Due to an affiliate company | $ (78,306) | $ 0 |
Transactions with Related Par47
Transactions with Related Parties - Statement of Operations (Tables) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Voyage expenses | $ (48,605) | $ (59,486) |
Voyage revenues, net | 169,488 | 182,962 |
TMS Tankers Ltd. | ||
Voyage expenses | (1,297) | (982) |
General and administrative expenses | ||
Management fees | (3,688) | (4,354) |
TMS Bulkers Ltd. | ||
Voyage expenses | (1,165) | (1,401) |
General and administrative expenses | ||
Management fees | (12,683) | (14,742) |
Cardiff Tankers Inc. | ||
Voyage expenses | (1,297) | (982) |
Fabiana Services S.A | ||
General and administrative expenses | ||
Consultancy fees | (1,500) | (1,854) |
Vivid Finance Limited | ||
General and administrative expenses | ||
Consultancy fees | (1,887) | (5,922) |
Azara Services S.A. | ||
General and administrative expenses | ||
Consultancy fees | (1,092) | (1,250) |
Basset Holdings Inc. | ||
General and administrative expenses | ||
Consultancy fees | (2,468) | (616) |
CEO DryShips | ||
General and administrative expenses | ||
Amortization of CEO stock based compensation | (3,328) | (2,924) |
CEO Ocean Rig | ||
General and administrative expenses | ||
Amortization of CEO stock based compensation | (1,395) | (653) |
Cardiff Drilling | ||
Service revenues, net | $ 7,366 | $ 7,729 |
Transactions with Related Par48
Transactions with Related Parties - TMS Bulkers Ltd - TMS Tankers Ltd (Details) | 6 Months Ended | 16 Months Ended | 36 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2015EUR (€) | Dec. 31, 2011USD ($) | Dec. 31, 2011EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2014EUR (€) | Jan. 01, 2015 | Jan. 01, 2012 | |
Management fee extra period | 3 months | 3 months | ||||||
Termination payment minimum period of fees | 36 months | 36 months | ||||||
Termination payment maximum period of fees | 48 months | 48 months | ||||||
TMS Bulkers Ltd. | ||||||||
Management fixed fee per vessel per day | $ 1,780 | € 1,591 | $ 1,678 | € 1,500 | $ 1,729 | € 1,545 | ||
Annual management fee adjustment maximum | 5.00% | 5.00% | ||||||
Annual management fee adjustment minimum | 3.00% | 3.00% | ||||||
Annual management fee adjustment applied | 3.00% | 3.00% | ||||||
Construction supervisory fee | 10.00% | 10.00% | ||||||
Extra Superintendents Fee | $ 559,000 | € 500,000 | ||||||
TMS Tankers Ltd. | ||||||||
Management fixed fee per vessel per day | $ 2,018 | € 1,804 | $ 1,902 | € 1,700 | $ 1,959 | € 1,751 | ||
Annual management fee adjustment maximum | 5.00% | 5.00% | ||||||
Annual management fee adjustment minimum | 3.00% | 3.00% | ||||||
Annual management fee adjustment applied | 3.00% | 3.00% | ||||||
Construction supervisory fee | 10.00% | 10.00% | ||||||
Commissions on charter hire agreements | 1.25% | 1.25% | ||||||
Commission on purchase or sale price of vessels and rigs | 1.00% | 1.00% |
Transactions with Related Par49
Transactions with Related Parties - Fabiana Ltd. (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2011 | Aug. 19, 2014 | Aug. 20, 2013 | Dec. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 20, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Aug. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock par value | $ 0.01 | $ 0.01 | |||||||||||||
Consultancy Agreement Compensation Committee approval on 12 January 2011 | Fabiana Services S.A | |||||||||||||||
Annual Remuneration | $ 4,000 | ||||||||||||||
Shares granted | 9,000,000 | ||||||||||||||
Vesting period | 8 years | ||||||||||||||
Vested number of shares on grant date | 1,000,000 | ||||||||||||||
Vested In Period | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||
Grant date fair value | $ 5.5 | ||||||||||||||
Consultancy Agreement Compensation Committee approval on 20 August 2013 | Fabiana Services S.A | |||||||||||||||
Shares granted | 1,000,000 | ||||||||||||||
Vesting period | 2 years | ||||||||||||||
Vested number of shares on grant date | 333,334 | ||||||||||||||
Vested In Period | 333,333 | 333,333 | |||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||
Grant date fair value | $ 2.01 | ||||||||||||||
Consultancy Agreement Compensation Committee Approval On 19 August 2014 | Fabiana Services S.A | |||||||||||||||
Shares granted | 1,200,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Vested In Period | 400,000 | 400,000 | 400,000 | ||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||
Grant date fair value | $ 3.26 | ||||||||||||||
Consultancy Agreement Compensation Committee Approval On 30 December 2014 | Fabiana Services S.A | |||||||||||||||
Shares granted | 2,100,000 | ||||||||||||||
Vesting period | 3 years | ||||||||||||||
Vested In Period | 700,000 | 700,000 | 700,000 | ||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||
Grant date fair value | $ 1.07 | ||||||||||||||
Cash bonus | $ 1,000 |
Transactions with Related Par50
Transactions with Related Parties - Azara Services S.A. (Details) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 12 Months Ended | 30 Months Ended | |||||||
Aug. 19, 2014 | Aug. 20, 2013 | Dec. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 20, 2015 | Dec. 31, 2014 | Aug. 20, 2014 | |
Common stock par value | $ 0.01 | $ 0.01 | ||||||||
Consultancy Agreement CEO Services January 2013 | Azara Services S.A. | ||||||||||
Annual Remuneration | $ 2,500 | |||||||||
Cash Bonus | $ 2,500 | |||||||||
Vesting period | 2 years | |||||||||
Ocean Rig's grant date fair value | $ 17.56 | |||||||||
Ocean Rig's vested number of shares on grant date | 50,000 | |||||||||
Ocean's Rig vested in period | 50,000 | 50,000 | ||||||||
Ocean Rig's shares granted | 150,000 | |||||||||
Consultancy Agreement CEO Services January 2013 | Azara Services 19 August 2014 | ||||||||||
Cash Bonus | $ 2,500 | |||||||||
Vesting period | 3 years | |||||||||
Ocean Rig's grant date fair value | $ 18.37 | |||||||||
Ocean's Rig vested in period | 50,000 | 50,000 | 50,000 | |||||||
Ocean Rig's shares granted | 150,000 | |||||||||
Consultancy Agreement CEO Services January 2013 | Azara Services 30 December 2014 | ||||||||||
Cash Bonus | $ 4,000 | |||||||||
Vesting period | 3 years | |||||||||
Ocean Rig's grant date fair value | $ 9.46 | |||||||||
Ocean's Rig vested in period | 100,000 | 100,000 | 100,000 | |||||||
Ocean Rig's shares granted | 300,000 |
Transactions with Related Par51
Transactions with Related Parties - Vivid,Cardiff Tankers,GSA, Steel wheel, Basset (Details) $ / shares in Units, € in Thousands, $ in Thousands | 2 Months Ended | 4 Months Ended | 5 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 12 Months Ended | 28 Months Ended | 30 Months Ended | 36 Months Ended | ||||||
Feb. 24, 2015$ / shares | May. 06, 2015$ / shares | Jun. 08, 2015USD ($)$ / sharesshares | Jun. 04, 2015USD ($)shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015EUR (€)shares | Jun. 30, 2014USD ($) | Jul. 30, 2015USD ($)shares | Aug. 19, 2014USD ($) | Aug. 20, 2013USD ($) | Dec. 30, 2014USD ($) | Dec. 31, 2012 | Jun. 30, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2014EUR (€) | Nov. 18, 2014USD ($) | |
Common stock par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Interest expense | $ 816 | $ 0 | ||||||||||||||
Due to an affiliate company | $ 78,306 | $ 78,306 | $ 0 | |||||||||||||
Date of dividend record | Mar. 10, 2015 | May 22, 2015 | ||||||||||||||
Date of dividend payment | Mar. 31, 2015 | May 31, 2015 | ||||||||||||||
Share price per dividend paid | $ / shares | $ 0.19 | $ 0.19 | ||||||||||||||
Chairman, President and Chief Executive Officer | ||||||||||||||||
Percentage Of Shareholder | 17.60% | 17.60% | ||||||||||||||
Cardiff Tankers Inc. | ||||||||||||||||
Chartering commission | 1.25% | 1.25% | ||||||||||||||
Steel Wheel Investments | ||||||||||||||||
Ownership in Ocean Rig | shares | 1,570,226 | 1,570,226 | ||||||||||||||
Global Services Agreement between Ocean Rig and Cardiff Drilling | ||||||||||||||||
Commissions in connection with employment arrangements | 1.00% | |||||||||||||||
Commission on purchase or sale price of vessels and rigs | 0.75% | |||||||||||||||
Basset Consultancy Agreement Effective 1 June 2012 between wholly owned Subsidiary of Ocean Rig and Basset | ||||||||||||||||
Officers' Compensation | $ 500 | € 450 | 1,000 | € 900 | ||||||||||||
Cash Bonus | $ 4,000 | $ 3,000 | $ 3,000 | |||||||||||||
Ownership in Ocean Rig | shares | 114,286 | 114,286 | ||||||||||||||
Basset Consultancy Agreement Effective 1 January 2015 between Company and Basset Holdings | ||||||||||||||||
Officers' Compensation | $ 500 | € 450 | ||||||||||||||
Cash Bonus | $ 2,000 | |||||||||||||||
Vivid Consultancy Agreement Effective 1 September 2010 between Company and Vivid Finance Limited | ||||||||||||||||
Commission in connection to financing related services | 0.20% | |||||||||||||||
Consultancy agreement terms in year | 5 years | |||||||||||||||
Vivid Consultancy Agreement Effective 1 January 2013 between Ocean Management Inc. and Vivid | ||||||||||||||||
Commission in connection to financing related services | 0.20% | |||||||||||||||
Ocean Rig UDW Inc. | ||||||||||||||||
Number of common shares offered in a public offering | shares | 28,571,428 | |||||||||||||||
Common stock par value | $ / shares | $ 0.01 | |||||||||||||||
Share price | $ / shares | $ 7 | |||||||||||||||
Unsecured debt | $ 120,000 | |||||||||||||||
Debt Instrument - variable rate basis | LIBOR | LIBOR | ||||||||||||||
Payment terms | Ocean Rig has the option to exchange this loan for its common shares owned by the Company at a fixed price per share, provided the Company's $200,000 Secured Bridge Credit facility has been repaid in full. If such exchange occurs, the margin of the loan will be reduced from inception. The above terms were amended with relevant supplemental agreements on Company's $200,000 Secured Bridge Credit facility. | Ocean Rig has the option to exchange this loan for its common shares owned by the Company at a fixed price per share, provided the Company's $200,000 Secured Bridge Credit facility has been repaid in full. If such exchange occurs, the margin of the loan will be reduced from inception. The above terms were amended with relevant supplemental agreements on Company's $200,000 Secured Bridge Credit facility. | ||||||||||||||
Maturity Date Of Loan | May 2,016 | May 2,016 | ||||||||||||||
Interest expense | $ 816 | |||||||||||||||
Due to an affiliate company | 78,306 | $ 78,306 | $ 0 | |||||||||||||
Proceeds from dividends received | $ 29,755 | |||||||||||||||
Ocean Rig UDW Inc. | Chairman, President and Chief Executive Officer | ||||||||||||||||
Percentage Of Shareholder | 4.70% | |||||||||||||||
Number of common shares offered in a public offering | shares | 1,428,571 | |||||||||||||||
Common stock value purchased | $ 10,000 | |||||||||||||||
Exchange of debt instrument with shares | Ocean Rig UDW Inc. | ||||||||||||||||
Ownership in Ocean Rig | shares | 4,444,444 | |||||||||||||||
Unsecured debt | $ 40,000 | |||||||||||||||
Number of Ocean Rig shares pledged as security | shares | 20,555,556 | |||||||||||||||
$120,000 Exchangeable Promissory Note | Ocean Rig UDW Inc. | ||||||||||||||||
Ownership in Ocean Rig | shares | 17,777,778 | |||||||||||||||
Due to an affiliate company | $ 80,000 |
Other Current Assets (Tables) (
Other Current Assets (Tables) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Assets [Abstract] | ||
Inventories | $ 12,027 | $ 20,304 |
Deferred operating expenses | 0 | 66,169 |
Prepayments and advances | 5,202 | 28,071 |
Insurance claims (Note 14) | 1,596 | 7,201 |
Other | 162 | 3,719 |
Balance at end of year/period | $ 18,987 | $ 125,464 |
Advances for Drillships under53
Advances for Drillships under Construction and Related Costs (Table) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Advances for Drillships under Construction and Related Costs [Abstract] | |
Balance at beginning of year | $ 623,984 |
Advances for drillships under construction and related costs | 465,649 |
Drillships delivered | (728,393) |
Deconsolidation of Ocean Rig | (361,240) |
Balance at end of year | $ 0 |
Vessels, Drilling Rigs, Drill54
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net - Vessels (Tables) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Balance,at beginning of period | $ 2,141,617 | |
Impairment loss | 140,568 | $ 0 |
Balance,at end of period | 1,416,225 | |
Cost | Vessels | ||
Balance,at beginning of period | 2,873,951 | |
Vessel transfer to held for sale | (530,640) | |
Impairment loss | (274,205) | |
Balance,at end of period | 2,069,106 | |
Accumulated Depreciation | Vessels | ||
Balance,at beginning of period | (732,334) | |
Impairment loss | 133,637 | |
Depreciation | (54,184) | |
Balance,at end of period | (652,881) | |
Net Book Value | Vessels | ||
Balance,at beginning of period | 2,141,617 | |
Vessel transfer to held for sale | (530,640) | |
Impairment loss | (140,568) | |
Depreciation | (54,184) | |
Balance,at end of period | $ 1,416,225 |
Vessels, Drilling Rigs, Drill55
Vessels, Drilling Rigs, Drillships, Machinery and Equipment - Drilling Rigs, Drillships, Machinery and Equipment, net (Tables) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Balance,at beginning of period | $ 6,259,747 |
Balance,at end of period | 0 |
Cost | Drilling rigs, drillships, machinery and equipment | |
Balance,at the beginning of period | 7,393,173 |
Additions | 806,353 |
Deconsolidation of Ocean Rig | (8,199,526) |
Balance,at the end of period | 0 |
Accumulated Depreciation | Drilling rigs, drillships, machinery and equipment | |
Balance,at beginning of period | (1,133,426) |
Depreciation | (154,481) |
Deconsolidation of Ocean Rig | 1,287,907 |
Balance,at end of period | 0 |
Net Book Value | Drilling rigs, drillships, machinery and equipment | |
Balance,at beginning of period | 6,259,747 |
Additions | 806,353 |
Depreciation | (154,481) |
Deconsolidation of Ocean Rig | (6,911,619) |
Balance,at end of period | $ 0 |
Vessels, Drilling Rigs, Drill56
Vessels, Drilling Rigs, Drillships, Machinery and Equipment, net - Additional information (Details) - USD ($) $ in Thousands | 4 Months Ended | 6 Months Ended | |||||
May. 06, 2015 | Jul. 08, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Apr. 30, 2015 | Mar. 30, 2015 | Dec. 31, 2014 | |
Vessels held for sale - Impairment loss | $ 56,631 | ||||||
Proceeds from sale of vessels - Upfront 20% receipt | 49,000 | $ 0 | |||||
Carrying amount | $ 1,416,225 | $ 2,141,617 | |||||
Four Suezmax tankers | |||||||
Vessels Total Sale Price | $ 245,000 | ||||||
Proceeds from sale of vessels - Upfront 20% receipt | $ 49,000 | ||||||
Six Aframax tankers | |||||||
Vessels Total Sale Price | $ 291,000 | ||||||
Four Aframax tankers | |||||||
Proceeds from sale of vessels - Upfront 20% receipt | $ 58,200 | ||||||
Four Suezmax tankers and Six Aframax tankers | |||||||
Vessels Total Sale Price | $ 536,000 | ||||||
Petalidi Suezmax tanker | |||||||
Delivery Date | July 16, 2015 | ||||||
Bordeira Suezmax tanker | |||||||
Delivery Date | July 21, 2015 | ||||||
Lipari Suezmax tanker | |||||||
Delivery Date | July 24, 2015 | ||||||
Belmar Aframax tanker | |||||||
Delivery Date | July 27, 2015 | ||||||
Saga Aframax tanker | |||||||
Delivery Date | August 6, 2015 | ||||||
Mareta Aframax tanker | |||||||
Delivery Date | August 7, 2015 | ||||||
One vessel | |||||||
Carrying amount | $ 95,937 | ||||||
Vessel Impairment Charges | $ 83,937 |
Other Non-Current Assets (Tab57
Other Non-Current Assets (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
OTHER NON-CURRENT ASSETS: | ||
Deferred operating expenses | $ 0 | $ 43,327 |
Security deposits for derivatives | 550 | 550 |
Prepaid investments | 0 | 57,910 |
Intangible assets, net | 0 | 4,732 |
Above-market acquired time charter contracts | 0 | 1,373 |
Total | $ 550 | $ 107,892 |
Investment in Affiliates - Part
Investment in Affiliates - Participation Percentage (Table) (Details) | Jun. 30, 2015 |
Equity Method Investments and Joint Ventures [Abstract] | |
Ocean Rig UDW Inc | 47.20% |
Investment in Affiliates (Tab59
Investment in Affiliates (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement | ||
Net income | $ 8,851 | $ 0 |
Ocean Rig UDW Inc. | ||
Balance Sheet | ||
Current assets | 1,399,663 | |
Non-current assets | 7,341,461 | |
Current liabilities | 448,142 | |
Non-current liabilities | 4,852,448 | |
Income Statement | ||
Service revenue, net | 835,299 | |
Net income | $ 114,275 |
Investment in Affiliates (Detai
Investment in Affiliates (Details) - USD ($) $ / shares in Units, $ in Thousands | 5 Months Ended | 6 Months Ended | |
Jun. 08, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Loss due to deconsolidation | $ (1,347,106) | $ 0 | |
Equity in net earnings of affiliate | 8,851 | $ 0 | |
Ocean Rig UDW Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in Ocean Rig | $ 514,047 | $ 378,888 | |
Loss due to deconsolidation | $ (1,347,106) | ||
Share Price | $ 6.96 | $ 5.13 | |
Equity in net earnings of affiliate | $ 114,275 |
Long-term Debt (Table) (Details
Long-term Debt (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Secured Bridge Credit Facility | $ 135,000 | $ 200,000 |
Less: Deferred financing costs | (14,060) | (118,710) |
Total debt | 1,001,774 | 5,517,613 |
Less: Current portion | (1,001,774) | (1,165,021) |
Long-term portion | 0 | 4,352,592 |
Drybulk Segment | ||
Debt Instrument [Line Items] | ||
Secured Debt | 615,954 | 685,410 |
Tanker Segment | ||
Debt Instrument [Line Items] | ||
Secured Debt | 264,880 | 277,913 |
6.5% Drill Rigs Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 800,000 |
7.25% Ocean Rig Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 0 | 500,000 |
$1.3 billion Senior Secured Term Loan B Facility | Drilling Segment | ||
Debt Instrument [Line Items] | ||
Secured Debt | 0 | 1,296,750 |
$1.9 billion Secured Term Loan B Facility | Drilling Segment | ||
Debt Instrument [Line Items] | ||
Secured Debt | $ 0 | $ 1,876,250 |
Long-term Debt - Principal Paym
Long-term Debt - Principal Payments (Tables) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Long-term Debt, by Maturity [Abstract] | ||
June 30, 2016 | $ 1,015,834 | |
Total principal payments | 1,015,834 | |
Less: Deferred financing costs | (14,060) | $ (118,710) |
Total debt | $ 1,001,774 | $ 5,517,613 |
Long-term Debt - Term bank loan
Long-term Debt - Term bank loans and credit facilities (Details) - USD ($) $ in Thousands | Jan. 09, 2015 | Jan. 08, 2015 | Mar. 15, 2013 | Mar. 19, 2015 | Jun. 02, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jul. 29, 2015 | Nov. 14, 2014 | Nov. 18, 2014 | Jul. 13, 2015 | Jul. 10, 2015 | May. 29, 2015 | May. 26, 2015 | Feb. 02, 2015 | Jan. 20, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||||||||||||
Aggregate available unused amount | $ 0 | $ 0 | |||||||||||||||
Loan agreements reclassified as current | $ 1,015,834 | ||||||||||||||||
Weighted Average Interest Rate | 5.95% | 6.57% | |||||||||||||||
Interest expense and debt amortization cost | $ 153,632 | $ 172,178 | |||||||||||||||
ABN AMRO Secured Bridge Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility amount outstanding | $ 200,000 | ||||||||||||||||
Number of Ocean Rig shares pledged as security | 8,000,000 | 12,500,000 | 45,129,069 | 78,301,755 | |||||||||||||
Cash prepayment | $ 15,000 | $ 20,000 | $ 10,034 | $ 50,000 | $ 15,000 | $ 5,000 | $ 10,000 | ||||||||||
Secured Term Loan facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of credit facility amount outstanding | 37,325 | ||||||||||||||||
Amount used for repayment of debt | $ 37,325 | ||||||||||||||||
$12.5 million Sellers credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Number of Ocean Rig shares pledged as security | 1,602,500 | ||||||||||||||||
Debt Instrument, Face Amount | $ 12,500 | ||||||||||||||||
Debt Instrument, Convertible, Effective Interest Rate | 3.00% | ||||||||||||||||
Amount drawn down | $ 12,500 | ||||||||||||||||
Ocean Rig UDW Inc. | ABN AMRO Secured Bridge Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Release of shares pledged as collateral | 12,500,000 | ||||||||||||||||
Ocean Rig UDW Inc. | $12.5 million Sellers credit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Release of shares pledged as collateral | 1,602,500 | ||||||||||||||||
Petalidi Suezmax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | July 16, 2015 | ||||||||||||||||
Bordeira Suezmax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | July 21, 2015 | ||||||||||||||||
Lipari Suezmax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | July 24, 2015 | ||||||||||||||||
Belmar Aframax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | July 27, 2015 | ||||||||||||||||
Saga Aframax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | August 6, 2015 | ||||||||||||||||
Mareta Aframax tanker | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Delivery Date | August 7, 2015 | ||||||||||||||||
Petalidi, Bordeira, Lipari Suezmax tankers and Belmar Aframax tanker | ABN AMRO Secured Bridge Loan Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Amount used for repayment of debt | $ 115,404 | ||||||||||||||||
Saga and Mareta Aframax tankers | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Amount used for repayment of debt | $ 48,246 |
Long-Term Debt - Covenant Descr
Long-Term Debt - Covenant Description and Compliance (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Debt instrument covenant compliance | As of June 30, 2015, the Company was not in compliance with certain loan-to-value ratios contained in certain of its loan agreements. These loan-to-value ratio shortfalls do not constitute events of default that would automatically trigger the full repayment of the loan. Based on the loan agreements, loan-to-value shortfalls may be remedied by the Company by providing additional collateral or repaying the amount of the shortfall. In addition, as of June 30, 2015, the Company was in breach of certain financial covenants, contained in the Company's loan agreements. Furthermore, the Company is in discussions to extend the maturity of a certain loan agreement which has lapsed. As a result of these incidents of non-compliance and of the cross default provisions contained in all of the Company's bank loan agreements, and in accordance with guidance related to the classification of obligations that are callable by the creditor, the Company has classified all of the amounts outstanding under its bank loans that were in breach as of June 30, 2015, amounting to $1,015,834, as current at June 30, 2015. |
Debt instrument covenant description | The loans also contain certain financial covenants relating to the Company's financial position, operating performance and liquidity, including maintaining working capital above a certain level. The Company's secured credit facilities impose operating and negative covenants on the Company and its subsidiaries. These covenants may limit DryShips' subsidiaries' ability to, among other things, without the relevant lenders' prior consent (i) incur additional indebtedness, (ii) change the flag, class or management of the vessel mortgaged under such facility, (iii) create or permit to exist liens on their assets, (iv) make loans, (v) make investments or capital expenditures, and (vi) undergo a change in ownership or control. |
Financial Instruments and Fai65
Financial Instruments and Fair Value Measurements - Consolidated Balance Sheets (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps, assets | $ 380 | $ 11,086 |
Interest rate swaps, liabilities | 8,819 | 40,867 |
Total derivatives assets | 380 | 11,086 |
Total derivatives liabilities | 8,819 | 40,867 |
Financial instruments - current assets | ||
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps, assets | 0 | 0 |
Financial instruments - non-current assets | ||
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps, assets | 380 | 11,086 |
Financial instruments - current liabilities | ||
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps, liabilities | 8,757 | 30,447 |
Financial instruments - non-current liabilities | ||
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps, liabilities | $ 62 | $ 10,420 |
Financial Instruments and Fai66
Financial Instruments and Fair Value Measurements - Derivatives not Designated as Hedging Instruments (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps | $ (11,448) | $ (12,403) |
Total | (11,448) | (12,403) |
Loss on interest rate swaps | ||
Derivative Instruments Not Designated as Hedging Instruments | ||
Interest rate swaps | $ (11,448) | $ (12,403) |
Financial Instruments and Fai67
Financial Instruments and Fair Value Measurements - Recurring Measurements (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Recurring measurements: | ||
Interest rate swaps - asset position | $ 380 | $ 11,086 |
Interest rate swaps - liability position | (8,819) | $ (40,867) |
Total | (8,439) | |
Significant Other Observable Inputs (Level 2) | ||
Recurring measurements: | ||
Interest rate swaps - asset position | 380 | |
Interest rate swaps - liability position | (8,819) | |
Total | $ (8,439) |
Financial Instruments and Fai68
Financial Instruments and Fair Value Measurements - Non-Recurring Measurements (Table) (Details) - USD ($) $ in Thousands | 5 Months Ended | 6 Months Ended | |
Jun. 08, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Non-Recurring measurements: | |||
Investment in affiliate (Note 9) | $ (1,347,106) | $ 0 | |
Assets held for sale | 56,631 | ||
Total | 140,568 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | |||
Non-Recurring measurements: | |||
Investment in affiliate (Note 9) | $ 514,047 | ||
Total | 514,047 | ||
Significant Other Observable Inputs (Level 2) | |||
Non-Recurring measurements: | |||
Assets held for sale | 536,000 | ||
Vessels | 12,000 | ||
Total | 548,000 | ||
Impairment loss | |||
Non-Recurring measurements: | |||
Assets held for sale | (56,631) | ||
Vessels | (83,937) | ||
Total | $ (140,568) | ||
Deconsolidation loss | |||
Non-Recurring measurements: | |||
Investment in affiliate (Note 9) | (1,347,106) | ||
Total | $ (1,347,106) |
Financial Instruments And Fai69
Financial Instruments And Fair Value Measurements - Interest Rate Swaps (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Interest Rate Derivatives [Abstract] | ||
Number of interest rate swaps agreements | 14 | |
Notional amount of derivative asset | $ 512,759 | |
Reclassification of losses on previously designated cash flow hedges associated with capitalized interest to Depreciation and amortization | $ (258) | $ (277) |
Financial Instruments and Fai70
Financial Instruments and Fair Value Measurements - Senior Notes, Credit Facilities and Additional Information (Details) - Fair Value, Measurements, Fair Value Hierarchy [Domain] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Fair Value Assets and Liabilities Measured on Recurring and Non-recurring Basis [Line Items] | ||
Long lived assets held for sale | $ 587,271 | |
Carrying amount | 1,416,225 | $ 2,141,617 |
$120.0 million Loan from Affilliate | ||
Fair Value Assets and Liabilities Measured on Recurring and Non-recurring Basis [Line Items] | ||
Debt Instrument Carrying Amount Net Of Financing Fees | 78,306 | |
One vessel | ||
Fair Value Assets and Liabilities Measured on Recurring and Non-recurring Basis [Line Items] | ||
Carrying amount | 95,937 | |
Vessel Impairment Charges | $ 83,937 |
Common Stock and Additional P71
Common Stock and Additional Paid-in Capital - Net loss Attributable to DryShips and Transfers to the Non-controlling Interest (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net Loss Attributable To DryShips Inc And Transfers To Noncontrolling Interest [Abstract] | ||
Net loss attributable to DryShips Inc. | $ (1,499,480) | $ (40,185) |
Transfers to the non-controlling interest: | ||
Decrease in DryShips Inc. equity for reduction in subsidiary ownership | (49,275) | (1,924) |
Net transfers to the non-controlling interest | (49,275) | (1,924) |
Net loss attributable to DryShips Inc. and transfers to the non-controlling interest | $ (1,548,755) | $ (42,109) |
Equity Incentive Plan - Non-ves
Equity Incentive Plan - Non-vested shares (Table) (Details) - 6 months ended Jun. 30, 2015 - Dryships Inc. - $ / shares | Total |
Number of non-vested shares | |
Number of non vested shares | |
Balance | 7,233,333 |
Granted | 0 |
Vested | 0 |
Balance | 7,233,333 |
Weighted average grant date fair value per non-vested shares | |
Weighted average grant date fair value per non vested shares | |
Balance | $ 3.81 |
Granted | 0 |
Vested | 0 |
Balance | $ 3.81 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2011 | Jun. 30, 2015 | Jun. 30, 2014 | Aug. 19, 2014 | Aug. 20, 2013 | Dec. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 20, 2015 | Dec. 31, 2014 | Aug. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 25, 2010 |
Common stock par value | $ 0.01 | $ 0.01 | |||||||||||||||
Unrecognized compensation cost related to non-vested share arrangements granted | $ 9,261 | $ 12,589 | |||||||||||||||
Weighted average period of recognition for unrecognised compensation cost | 4 years | ||||||||||||||||
Allocated Share-based Compensation Expense | $ 3,328 | $ 2,924 | |||||||||||||||
Total fair value of shares vested | $ 0 | $ 0 | |||||||||||||||
Fabiana Services S.A | Consultancy Agreement Compensation Committee approval on 12 January 2011 | |||||||||||||||||
Ocean Rig's shares granted | 9,000,000 | ||||||||||||||||
Vesting period | 8 years | ||||||||||||||||
Vested number of shares on grant date | 1,000,000 | ||||||||||||||||
Vested In Period | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||||||||
Grant date fair value | $ 5.5 | ||||||||||||||||
Vested number of shares | 5,000,000 | ||||||||||||||||
Fabiana Services S.A | Consultancy Agreement Compensation Committee approval on 20 August 2013 | |||||||||||||||||
Ocean Rig's shares granted | 1,000,000 | ||||||||||||||||
Vesting period | 2 years | ||||||||||||||||
Vested number of shares on grant date | 333,334 | ||||||||||||||||
Vested In Period | 333,333 | 333,333 | |||||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||||
Grant date fair value | $ 2.01 | ||||||||||||||||
Vested number of shares | 666,667 | ||||||||||||||||
Fabiana Services S.A | Consultancy Agreement Compensation Committee Approval On 19 August 2014 | |||||||||||||||||
Ocean Rig's shares granted | 1,200,000 | ||||||||||||||||
Vesting period | 3 years | ||||||||||||||||
Vested In Period | 400,000 | 400,000 | 400,000 | ||||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||||
Grant date fair value | $ 3.26 | ||||||||||||||||
Vested number of shares | 400,000 | ||||||||||||||||
Fabiana Services S.A | Consultancy Agreement Compensation Committee Approval On 30 December 2014 | |||||||||||||||||
Ocean Rig's shares granted | 2,100,000 | ||||||||||||||||
Vesting period | 3 years | ||||||||||||||||
Vested In Period | 700,000 | 700,000 | 700,000 | ||||||||||||||
Common stock par value | $ 0.01 | ||||||||||||||||
Grant date fair value | $ 1.07 | ||||||||||||||||
Vested number of shares | 0 | ||||||||||||||||
Equity Incentive Plan 2008 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 21,834,055 |
Commitments and Contingencies -
Commitments and Contingencies - Contractual Charter Revenue (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Unbilled Receivables, Not Billable at Balance Sheet Date [Abstract] | |
Twelve months ending June 30, 2016 | $ 87,171 |
Twelve months ending June 30, 2017 | 84,398 |
Twelve months ending June 30, 2018 | 84,398 |
Twelve months ending June 30, 2019 | 50,990 |
Twelve months ending June 30, 2020 | $ 7,968 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Loss Contingencies [Line Items] | |
Charter agreement description of options | Under seven of the Company's charter agreements, the charterer had the option to (i) acquire the vessels at fair market value as determined by two independent brokers, at the date that the options were exercised, less $5,000 per vessel or, (ii) to require a cash payout of $5,000 per charter agreement in which case the charter agreement would automatically be terminated on the date of completion of the current voyage. These options were exercisable beginning late March 2015 and throughout the term of the charter agreements which expired through 2020. On June 25, 2015, the Company concluded an agreement with the charterer under which, the charterer agreed to forgo the exercise of the purchase option under the seven charter agreements in exchange for a reduction of $ 35,000 in overdue receivables, $5,000 cash payment to the Company and write off the remaining $16,471 in overdue receivables as of May 31, 2015, against to "Voyage revenues". Out of the $35,000 the $6,759 has been amortized, while the remaining $28,241 were written off as "Loss on contract cancellation". As part of the transaction, new time charters were agreed for a period of over four years. |
Interest and Finance Costs (T76
Interest and Finance Costs (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and Finance Costs [Abstract] | ||
Interest incurred on long-term debt | $ 140,738 | $ 153,727 |
Interest and amortization on loan from affiliate | 816 | 0 |
Amortization and write-off of financing fees | 12,078 | 18,451 |
Discount on receivable from drilling contract | 4,048 | 0 |
Amortization of convertible notes discount | 0 | 23,658 |
Amortization of share lending agreement-note issuance costs | 0 | 1,475 |
Premium on 9.5% Senior Unsecured Notes | 0 | 26,546 |
Other | 1,217 | 3,076 |
Capitalized interest | (12,060) | (19,400) |
Total | $ 146,837 | $ 207,533 |
Segment Information (Table) (De
Segment Information (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Revenues from external customers | $ 895,293 | $ 985,159 | |
Income tax expense | (36,931) | (23,933) | |
Net income/(loss) | (1,460,451) | (12,432) | |
Total assets | 2,615,936 | $ 10,371,603 | |
Drybulk Segment | |||
Revenues from external customers | 64,609 | 103,024 | |
Income tax expense | 0 | 0 | |
Net income/(loss) | (201,210) | (79,376) | |
Total assets | 2,018,930 | 1,741,235 | |
Tanker Segment | |||
Revenues from external customers | 104,879 | 79,938 | |
Income tax expense | 0 | 0 | |
Net income/(loss) | (16,513) | (1,380) | |
Total assets | 597,006 | 652,375 | |
Drilling Rigs Segment | |||
Revenues from external customers | 725,805 | 802,197 | |
Income tax expense | (36,931) | (23,933) | |
Net income/(loss) | (1,242,728) | 68,324 | |
Total assets | 0 | 8,095,212 | |
Total | |||
Revenues from external customers | 895,293 | 985,159 | |
Income tax expense | (36,931) | (23,933) | |
Net income/(loss) | (1,460,451) | $ (12,432) | |
Total assets | $ 2,615,936 | $ 10,488,822 |
Segment Information - Reconcili
Segment Information - Reconciliation of Total Segment Assets (Table) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 2,615,936 | $ 10,371,603 |
Total Assets for reportable segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 10,488,822 | |
Elimination of intersegment receivables | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ (117,219) |
Losses per Share (Table) (Detai
Losses per Share (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per Share Reconciliation [Abstract] | ||
Net loss attributable to DryShips Inc. | $ (1,499,480) | $ (40,185) |
Less: Allocation of undistributed earnings to non-vested stock | $ (265) | $ (115) |
Basic and diluted LPS | ||
Amount per share | $ (2.26) | $ (0.1) |
Weighted-average number of outstanding shares (denominator) | 664,830,988 | 411,363,240 |
Loss attributable to common stockholders | $ (1,499,745) | $ (40,300) |
Non-controlling Interests (Ta80
Non-controlling Interests (Table) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Non-controlling interests | ||
Balance at the beginning of the period | $ 1,297,567 | $ 1,218,062 |
Net income/ (loss) for the period | 39,029 | 27,753 |
Decrease in DryShips equity for reduction in subsidiary ownership (Notes 12 and 13) | 50,023 | 1,719 |
Amortization of stock based compensation | 841 | 672 |
Dividends declared | (20,525) | (10,246) |
Other equity components | 518 | 0 |
Other comprehensive income | 115 | 311 |
Deconsolidation of Ocean Rig | (1,367,568) | 0 |
Balance at the end of the period | $ 0 | $ 1,238,271 |