Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Entity Registrant Name | Ocean Rig UDW Inc. |
Entity Central Index Key | 1,447,382 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Trading Symbol | orig |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well Known Seasoned Issuer | No |
Entity Common Stock Shares Outstanding | 138,666,384 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 734,747 | $ 528,933 |
Restricted cash | 2,718 | 2,564 |
Trade accounts receivable, net of allowance for doubtful receivables of $2,825 and $117,438 at December 31, 2014 and 2015, respectively | 416,104 | 345,187 |
Other current assets (Note 4) | 84,533 | 101,508 |
Total current assets | 1,238,102 | 978,192 |
FIXED ASSETS, NET: | ||
Advances for drilling units under construction and related costs (Note 5) | 394,852 | 622,507 |
Drilling units, machinery and equipment, net (Note 6) | 6,336,892 | 6,207,633 |
Total fixed assets, net | 6,731,744 | 6,830,140 |
OTHER NON-CURRENT ASSETS: | ||
Restricted cash (Note 2) | 10,020 | 0 |
Financial instruments (Note 9) | 3,494 | 10,101 |
Due from a related party, non- current (Note 3) | 0 | 117,219 |
Other non-current assets (Note 7) | 36,860 | 105,969 |
Total non-current assets, net | 50,374 | 233,289 |
Total assets | 8,020,220 | 8,041,621 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt, net of deferred financing costs (Note 8) | 56,725 | 19,858 |
Due to related parties (Note 3) | 0 | 11,287 |
Accounts payable and other current liabilities | 104,029 | 72,030 |
Accrued liabilities | 118,231 | 175,058 |
Deferred revenue | 113,548 | 121,579 |
Financial instruments (Note 9) | 8,931 | 17,881 |
Total current liabilities | 401,464 | 417,693 |
NON-CURRENT LIABILITIES | ||
Long term debt, net of current portion and deferred financing costs (Note 8) | 4,271,743 | 4,352,592 |
Financial instruments (Note 9) | 2,743 | 8,617 |
Deferred revenue | 66,643 | 81,359 |
Other non-current liabilities | 2,862 | 15,084 |
Total non-current liabilities | $ 4,343,991 | $ 4,457,652 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ||
STOCKHOLDERS' EQUITY: | ||
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and 2015, nil issued and outstanding at December 31, 2014 and 2015, respectively | $ 0 | $ 0 |
Common stock, $0.01 par value; 1,000,000,000 shares authorized, at December 31, 2014 and 2015, 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and 2015, respectively (Note 10) | 1,609 | 1,320 |
Treasury stock ; 0 shares at December 31, 2014 and $0.01 par value; 22,222,222 shares at December 31, 2015 (Note 3) | (222) | 0 |
Additional paid-in capital | 3,572,549 | 3,494,957 |
Accumulated other comprehensive loss (Note 11) | (22,841) | (23,938) |
Accumulated deficit | (276,330) | (306,063) |
Total stockholders' equity | 3,274,765 | 3,166,276 |
Total liabilities and stockholders' equity | $ 8,020,220 | $ 8,041,621 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets | ||
Allowance for doubtful receivables | $ 117,438 | $ 2,825 |
Preferred stock par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 500,000,000 | 500,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock shares issued | 160,888,606 | 132,017,178 |
Common stock shares outstanding | 160,888,606 | 132,017,178 |
Treasury stock par value | $ 0.01 | $ 0 |
Treasury stock, shares | 22,222,222 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES: | |||
Revenues | $ 1,748,200 | $ 1,817,077 | $ 1,180,250 |
EXPENSES: | |||
Drilling units operating expenses | 582,122 | 727,832 | 504,957 |
Depreciation and amortization | 362,587 | 324,302 | 235,473 |
Impairment loss (Note 6) | 414,986 | 0 | 0 |
General and administrative expenses | 100,314 | 131,745 | 126,868 |
Loss on sale of fixed assets | 5,177 | 0 | 0 |
Legal settlements and other, net (Note 16) | (2,591) | (721) | 6,000 |
Operating income | 285,605 | 633,919 | 306,952 |
OTHER INCOME / (EXPENSES): | |||
Interest and finance costs (Note 12) | (280,348) | (300,131) | (220,564) |
Interest income (Note 3) | 9,811 | 12,227 | 9,595 |
Gain/ (Loss) on interest rate swaps (Note 9) | (11,513) | (12,671) | 8,616 |
Gain from repurchase of Senior Notes (Note 8) | 189,174 | 0 | 0 |
Other, net | (12,899) | 4,282 | 3,315 |
Total other expenses, net | (105,775) | (296,293) | (199,038) |
INCOME BEFORE INCOME TAXES | 179,830 | 337,626 | 107,914 |
Income taxes (Note 13) | (99,816) | (77,823) | (44,591) |
NET INCOME ATTRIBUTABLE TO OCEAN RIG UDW INC. | 80,014 | 259,803 | 63,323 |
NET INCOME ATTRIBUTABLE TO OCEAN RIG UDW INC. COMMON STOCKHOLDERS (Note 14) | $ 78,839 | $ 259,031 | $ 63,221 |
EARNINGS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS, BASIC AND DILUTED (Note 14) | $ 0.57 | $ 1.96 | $ 0.48 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES, BASIC AND DILUTED (Note 14) | 138,757,176 | 131,837,227 | 131,727,504 |
Dividend declared per share | $ 0.38 | $ 0.57 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statements of Comprehensive Income/(Loss) | |||
Net income | $ 80,014 | $ 259,803 | $ 63,323 |
Other Comprehensive income / (loss): | |||
Reclassification of realized losses associated with capitalized interest to the Consolidated Statement of Operations (Note 9) | 1,035 | 1,034 | 1,036 |
Actuarial gains/ (losses) | 62 | (1,518) | 3,335 |
Total Other Comprehensive income/ (loss) | 1,097 | (484) | 4,371 |
Total Comprehensive income | $ 81,111 | $ 259,319 | $ 67,694 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
BALANCE, at Dec. 31, 2012 | $ 2,908,515 | $ 1,317 | $ 3,489,018 | $ (27,825) | $ (553,995) | |
Balance, shares at Dec. 31, 2012 | 131,725,128 | |||||
Net income/ (loss) | 63,323 | 63,323 | ||||
Issuance of non-vested shares, shares | 150,000 | |||||
Issuance of non-vested shares, value | $ 2 | (2) | ||||
Amortization of stock based compensation | 3,634 | 3,634 | ||||
Other comprehensive income/ (loss) | 4,371 | 4,371 | ||||
BALANCE, at Dec. 31, 2013 | 2,979,843 | $ 1,319 | 3,492,650 | (23,454) | (490,672) | |
Balance, shares at Dec. 31, 2013 | 131,875,128 | |||||
Net income/ (loss) | 259,803 | 259,803 | ||||
Issuance of non-vested shares, shares | 157,500 | |||||
Issuance of non-vested shares, value | $ 1 | (1) | ||||
Cancellation of previously issued vested shares | (15,450) | |||||
Amortization of stock based compensation | 3,576 | 3,576 | ||||
Establishment costs for issuance of subsidiaries shares | (1,268) | (1,268) | ||||
Dividends declared and paid | (75,194) | (75,194) | ||||
Other comprehensive income/ (loss) | (484) | (484) | ||||
BALANCE, at Dec. 31, 2014 | 3,166,276 | $ 1,320 | 3,494,957 | (23,938) | (306,063) | |
Balance, shares at Dec. 31, 2014 | 132,017,178 | |||||
Net income/ (loss) | 80,014 | 80,014 | ||||
Issuance of non-vested shares, shares | 300,000 | |||||
Issuance of non-vested shares, value | $ 3 | (3) | ||||
Issuance of common stock, value | 193,983 | $ 286 | 193,697 | |||
Issuance of common stock, shares | 28,571,428 | |||||
Treasury stock, value (Note 3) | (120,000) | $ (222) | (119,778) | |||
Treasury stock, shares (Note 3) | (22,222,222) | |||||
Amortization of stock based compensation | 3,676 | 3,676 | ||||
Dividends declared and paid | (50,281) | (50,281) | ||||
Other comprehensive income/ (loss) | 1,097 | 1,097 | ||||
BALANCE, at Dec. 31, 2015 | $ 3,274,765 | $ 1,609 | $ (222) | $ 3,572,549 | $ (22,841) | $ (276,330) |
Balance, shares at Dec. 31, 2015 | 160,888,606 | (22,222,222) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||
Net income | $ 80,014 | $ 259,803 | $ 63,323 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 362,587 | 324,302 | 235,473 |
Amortization and write-off of financing fees | 24,033 | 42,995 | 38,797 |
Amortization income of deferred financing fees | (2,781) | (219) | 0 |
Change in fair value of derivatives | (8,217) | (15,909) | (44,383) |
Loss on sale of fixed assets | 5,177 | 0 | 0 |
Allowance for doubtful receivables | 114,613 | 0 | 0 |
Gain from repurchase of senior notes | (189,174) | 0 | 0 |
Effect of exchange rate changes on cash | 6,748 | 0 | 0 |
Impairment loss | 414,986 | 0 | 0 |
Amortization of stock based compensation | 3,676 | 3,576 | 3,634 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (188,330) | (55,469) | (141,842) |
Other current and non-current assets | 36,027 | 38,460 | (41,318) |
Due to / (from) related parties | (11,287) | 11,287 | 0 |
Accounts payable and other current and non-current liabilities | 19,837 | (25,728) | 27,435 |
Accrued liabilities | (56,502) | (40,131) | 57,251 |
Deferred revenue | (18,395) | (73,150) | 134,638 |
Net Cash Provided by Operating Activities | 593,012 | 469,817 | 333,008 |
Cash Flows from Investing Activities: | |||
Loan to former parent | 0 | (120,000) | 0 |
Proceeds from arrangement fees | 0 | 3,000 | 0 |
Advances for drilling units under construction and related costs | (89,867) | (292,984) | (232,834) |
Drilling units machinery, equipment and other improvements/ upgrades | (543,976) | (455,997) | (1,050,530) |
Proceeds from sale of fixed assets | 300 | 0 | 0 |
(Increase) / decrease in restricted cash | (10,174) | 50,997 | 139,134 |
Net Cash Used in Investing Activities | (643,717) | (814,984) | (1,144,230) |
Cash Flows from Financing Activities: | |||
Proceeds from short/long-term credit facilities, term loans and senior notes | 462,000 | 2,250,000 | 2,800,000 |
Principal payments and repayments of long-term debt and senior notes | (61,179) | (1,862,250) | (1,622,250) |
Senior Notes repurchase | (273,673) | 0 | 0 |
Net proceeds from common stock issuance | 192,714 | 0 | 0 |
Dividends paid | (50,281) | (75,194) | 0 |
Payments for issuance of subsidiaries shares | 0 | (466) | 0 |
Payment of financing costs, net | (6,314) | (43,457) | (78,427) |
Net Cash Provided by Financing Activities | 263,267 | 268,633 | 1,099,323 |
Effect of exchange rate changes on cash | (6,748) | 0 | 0 |
Net increase/(decrease) in cash and cash equivalents | 205,814 | (76,534) | 288,101 |
Cash and cash equivalents at beginning of year | 528,933 | 605,467 | 317,366 |
Cash and cash equivalents at end of year | 734,747 | 528,933 | 605,467 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest, net of amount capitalized | 256,056 | 212,014 | 113,337 |
Income taxes | 60,687 | 60,374 | 50,392 |
Non cash financing and investing activities: | |||
Issuance of non-vested shares | $ 3 | $ 1 | $ 2 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and General Information [Abstract] | |
Basis of Presentation and General Information | 1. Basis of Presentation and General Information: The accompanying consolidated financial statements include the accounts of Ocean Rig UDW Inc., its subsidiaries and consolidated Variable Interest Entities ("VIEs") (collectively, the "Company," "Ocean Rig" or the "Group"). Ocean Rig was formed on December 10, 2007, under the laws of the Republic of the Marshall Islands under the name Primelead Shareholders Inc. as an international contractor of offshore deepwater drilling services. The Company was established by DryShips Inc. ("DryShips" or formerly the “Parent") for the purpose of being the holding company of its drilling segment. DryShips is a publicly listed company on the NASDAQ Capital Market (NASDAQGS: DRYS). On November 24, 2010, Ocean Rig UDW established an office and was registered with the Cypriot Registrar of Companies as an overseas company. On October 6, 2011, the Company's common shares commenced "regular way" trading on the NASDAQ Global Select Market under the ticker symbol "ORIG." From June 8, 2015, and following a public offering (Note 10), the Company is considered as an affiliate entity and not as a controlled subsidiary of DryShips. DryShips is currently impacted by the prolonged downturn in the drybulk charter market. The Company, in the preparation of its consolidated financial statements, has considered its relationship to DryShips and any impact to its former Parent's financial condition might have on its own consolidated financial statements. Based on its assessment, the Company has concluded that there is no impact on the basis of preparation of its consolidated financial statements. On September 11, 2015, the Company entered into an agreement to provide third party technical management services for the offshore drilling unit Cerrado. The Company's customers are mainly oil and gas exploration and production companies, including major integrated oil companies, independent oil and gas producers and government-owned oil and gas companies. Customers individually accounting for more than 10% of the Company's revenues during the years ended December 31, 2013, 2014 and 2015, were as follows: Year ended December 31, 2013 2014 2015 Customer A - 14 % 14% Customer B 33 % 18 % 19% Customer C 13 % 12 % 13% Customer D 18 % 30 % 15% Customer E 12 % 14 % 13% Customer F - - 15% The loss of any of these significant customers could have a material adverse effect on the Company's results of operations if they were not replaced by other customers. |
Significant Accounting policies
Significant Accounting policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting policies [Abstract] | |
Significant Accounting policies | 2. Significant Accounting Policies: (a) Principles of consolidation: (b) Use of estimates: (c) Comprehensive income/(loss): During 2013, the Company adopted the requirements of Accounting Standard Update ("ASU") 2013-02, "Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income". The objective of this amendment is to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under US GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. (d) Cash and cash equivalents: (e) Restricted cash: (f) Trade accounts receivable net: (g) Concentration of credit risk: The Company has made advances for the construction of drilling units in a major shipyard in Korea. The ownership of the drilling units is transferred from the yard to the Company at delivery. As of December 31, 2015, cumulative installment payments made to the yard amounted to approximately $333,632 for the three drilling units under construction (Note 5). These installment payments are secured with irrevocable letters of guarantee, or "refund guarantees", issued by financial institutions. (h) Advances for drilling units under construction and related costs: (i) Capitalized interest: (j) Insurance claims: (k) Foreign currency translation: (l) Drilling units, machinery and equipment, net: (m) Impairment of long-lived assets: In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the drilling units future performance, with the significant assumptions being related to drilling rates, fleet utilization, operating expenses, capital expenditures, class survey costs, residual value and the estimated remaining useful life of each drilling unit. The projected net operating cash flows are determined by considering the drilling revenues from existing drilling contracts for the fixed days, while for the unfixed days the Company uses an estimated daily rate equivalent by utilizing available market data. The salvage value used in the impairment test is estimated to be $35,000 and $50,000 for the drilling rigs and drillships, respectively in accordance with the Company's depreciation policy. The remaining significant assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are highly subjective. If the Company's estimate of undiscounted future cash flows for any drilling unit is lower than the carrying value, the carrying value is written down, by recording a charge to operations, to the vessel's fair market value if the fair market value is lower than the vessel's carrying value. The fair market value for the drilling unit is obtained by independent appraisals. The Company's analysis for the year ended December 31, 2015, also involved sensitivity tests on the off-hire days, allowing for variances ranging from 97.5% to 92.5%. As a result of the impairment review, the Company determined that the carrying amounts of its assets held for use were recoverable and therefore, concluded that no impairment loss was necessary for 2013, 2014. For the year ended December 31, 2015, as a result of the impairment review, the Company determined that the carrying amount of two drilling units was not recoverable and, therefore, a charge of $414,986 was recognized and included in "Impairment loss", in the accompanying consolidated statement of operations (Note 6) . (n) Class costs: (o) Deferred financing costs: (p) Revenue and related expenses: Revenues: (i) Well contracts: (ii) Term contracts: (q) Earnings / (loss) per common share: (r) Segment reporting: (s) Financial instruments : (i) Hedge accounting: The Company is party to interest swap agreements where it receives a floating interest rate and pays a fixed interest rate for a certain period. Contracts which meet the strict criteria for hedge accounting are accounted for as cash flow hedges. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognized directly as a component of "Accumulated other comprehensive income/ (loss)" in equity, while any ineffective portion, if any, is recognized immediately in current period earnings. The Company discontinues cash flow hedge accounting if the hedging instrument expires and it no longer meets the criteria for hedge accounting or designation is revoked by the Company. At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the consolidated statement of operations. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to net profit or loss for the year as financial income or expense. (ii) Other derivatives: (t) Fair value measurements: (u) Income taxes: (v) Commitments and contingencies: (w) Stock-based compensation: (x) Inventories (y) Recent accounting pronouncements: Inventories: Consolidation: Revenue from Contracts with Customers: Leases: |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Transactions with Related Parties [Abstract] | |
Transactions with Related Parties | 3. Transactions with Related Parties: The amounts included in the accompanying consolidated balance sheets and consolidated statements of operations are as follows: Year ended December 31, 2014 2015 Balance Sheet Due from a related party, non-current 117,219 - Due from related party, non-current - Total 117,219 - Due to related parties 11,287 - Due to related parties - Total 11,287 - Advances for drilling units under construction and related costs $ 1,546 $ 394 Drilling units, machinery and equipment, net $ 2,885 $ 2,961 Year ended December 31, Statement of Operations 2013 2014 2015 Service Revenue, net 10,786 16,826 16,524 General and administrative expenses 27,181 32,660 7,409 Interest income $ - $ 1,164 $ 6,024 Amortization and write - off of financing fees $ - $ - $ 2,781 Cardiff Drilling Inc.: Vivid Finance Limited: Under the consultancy agreement effective from January 1, 2013, between Ocean Rig Management and Vivid Finance Limited ("Vivid"), a company controlled by the Chairman, President and Chief Executive Officer of the Company, Mr. George Economou, pursuant to which Vivid acts as a consultant on financing matters for Ocean Rig and its subsidiaries, Vivid provides the Company with financing-related services such as (i) negotiating and arranging new loan and credit facilities, interest rate swap agreements, foreign currency contracts and forward exchange contracts, (ii) renegotiating existing loan facilities and other debt instruments and, (iii) the raising of equity or debt in the capital markets. In exchange for its services in respect of the Company, 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; and, (ii) at any time by the mutual agreement of the parties. On July 29, 2015, the Company amended its agreement with Vivid to expand the scope of the services provided under the agreement to the Company and its subsidiaries or affiliates, to cover certain cash management and cash investment services. In exchange for its services in respect of the Company, Vivid is entitled to a fee equal to 30% of any profits provided the profits are at least 10% of the invested amount. Basset Holdings Inc Effective June 1, 2012, the Company entered through one of its' wholly owned subsidiary into a consultancy agreement with Basset Holdings Inc., or Basset, a Marshall Islands entity beneficially owned by the Company's Executive Vice President, Mr. Anthony Kandylidis, for the provision of the services of the Company's Executive Vice President. The agreement has an initial term of five years and may be renewed or extended for one-year successive terms with the consent of both parties. Under the terms of the agreement, the Company is obligated to pay an annual remuneration to Basset. Basset is also entitled to cash or equity-based bonuses to be awarded at the Company's sole discretion. The Company may terminate the agreement for cause, as defined in the agreement, in which case Basset will not be entitled to further payments of any kind. Upon termination of the agreement without cause, or in the event the agreement is terminated within three months of a change of control, as defined in the agreement, the Company will be obligated to pay a lump sum amount. Basset may terminate the agreement without cause upon three months written notice. In addition, Basset may terminate the agreement for good reason and in such event, the Company will be obligated to pay a lump sum amount. Basset is also the owner of 114,286 shares of the Company's common stock, as of December 31, 2015. Steel Wheel Investments Limited: Steel Wheel Investments Limited ("Steel Wheel"), a company controlled by the Company's Executive Vice President, Mr. Antony Kandylidis, is the owner of 1,570,226 shares of the Company's common stock, as of December 31, 2015. George Economou: Azara Services S.A.: Effective January 1, 2013, the Company entered through one of its' wholly owned subsidiary into a consultancy agreement with Azara Services S.A. ("Azara"), a Marshall Islands entity beneficially owned by the Company's Chief Executive Officer, Mr. George Economou, for the provision of the services of the Company's Chief Executive Officer. The agreement has an initial term of five years and may be renewed or extended with the consent of both parties. Under the terms of the agreement, the Company is obligated to pay an annual remuneration to Azara. Azara is also entitled to cash or equity-based bonuses to be awarded at the Company's sole discretion. The Company may terminate the agreement for cause, as defined in the agreement, in which case Azara will not be entitled to further payments of any kind. Upon termination of the agreement without cause, or in the event the agreement is terminated within three months of a change of control, as defined in the agreement, the Company will be obligated to pay a lump sum amount. Azara may terminate the agreement without cause upon three months written notice. In addition, Azara may terminate the agreement for good reason and in such event, the Company will be obligated to pay a lump sum amount. DryShips Inc. On November 18, 2014, the Company entered into a $120,000 Exchangeable Promissory Note with its former parent company, DryShips. The loan from the Company to DryShips bore interest at a LIBOR plus margin rate and was due in May 2016. On June 4, 2015, the Company and DryShips signed an amendment under the $120,000 Exchangeable Promissory Note to, among other things, partially exchange $40,000 of the loan for 4,444,444 of the Company's shares owned by DryShips, amend the interest of the loan and pledged to the Company 20,555,556 shares of the Company's stock owned by DryShips. On August 13, 2015, the Company reached an agreement with DryShips and exchanged the remaining outstanding balance of $80,000 owed to the Company under the $120,000 Exchangeable Promissory Note, for 17,777,778 shares of the Company's shares owned by DryShips. During the year ended December 31, 2015, the Company incurred interest income, including the amortization and write off of related financing fees amounting to $8,805 from DryShips under this loan agreement. During the year ended December 31, 2015, the Company paid dividends of $50,281 out of which $29,755 were paid to DryShips. |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Assets [Abstract] | |
Other Current Assets | 4. Other Current Assets The amount of other current assets shown in the accompanying consolidated balance sheets is analyzed as follows: December 31, 2014 2015 Inventories $ 6,609 $ 18,088 Deferred mobilization expenses 66,169 43,825 Prepayments and advances 22,880 20,607 Other 5,850 2,013 Total $ 101,508 $ 84,533 |
Advances for drilling units und
Advances for drilling units under construction and related costs | 12 Months Ended |
Dec. 31, 2015 | |
Advances For Drilling Units Under Construction And Related Costs [Abstract] | |
Advances for drilling units under construction and related costs | 5. Advances for drilling units under construction and related costs: The amounts shown in the accompanying consolidated balance sheets include milestone payments under the drilling unit 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. For the years ended December 31, 2014 and 2015, the movement of the advances for drilling units under construction and related costs was as follows: December 31, 2014 2015 Balance at beginning of year $ 662,313 $ 622,507 Advances for drilling units under construction and related costs 688,832 500,031 Drilling units delivered (728,638 ) (727,686 ) Balance at end of year $ 622,507 $ 394,852 On March 24, 2014 and March 5, 2015, the Company took delivery of the drilling units Ocean Rig Athena Ocean Rig Apollo The Company has advanced $148,632 to the yard for the Ocean Rig Santorini The Company has also advanced $108,400 and $76,600, respectively, to the yard for each of the new two drilling units under construction, the Ocean Rig Crete Ocean Rig Amorgos |
Drilling units, machinery and e
Drilling units, machinery and equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Drilling Units, Machinery And Equipment, Net [Abstract] | |
Drilling units, machinery and equipment, net | 6. Drilling units, machinery and equipment, net: The amounts in the accompanying consolidated balance sheets are analyzed as follows: Cost Accumulated Depreciation Net Book Value Balance December 31, 2013 $ 6,578,940 (801,915 ) $ 5,777,025 Additions/ Transfer from drilling units under construction 752,432 - 752,432 Depreciation - (321,824 ) (321,824 ) Balance December 31, 2014 $ 7,331,372 $ (1,123,739 ) $ 6,207,633 Additions/ Transfer from drilling units under construction 909,830 - 909,830 Disposal of assets (5,477 ) - (5,477 ) Impairment loss (976,730 ) 561,744 (414,986 ) Depreciation - (360,108 ) (360,108 ) Balance December 31, 2015 $ 7,258,995 (922,103) 6,336,892 As of December 31, 2015, all of the Company's operating drilling units have been pledged as collateral to secure the Company's 6.50% senior secured notes due 2017 and term loan B facilities discussed in Note 8. For the year ended December 31, 2015, as a result from the impairment review, the Company determined that the carrying amount of its' two drilling units was not recoverable and, therefore, a charge of $414,986 was recognized and included in "Impairment loss", in the accompanying consolidated statement of operations in order to write down those rigs to their fair value. |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2015 | |
Other non-current assets [Abstract] | |
Other non-current assets | 7. Other non-current assets The amount of other non-current assets shown in the accompanying consolidated balance sheets is analyzed as follows: December 31, 2014 2015 Deferred mobilization expenses $ 43,327 $ 23,992 Intangible assets, net 4,732 3,289 Prepaid investments 57,910 9,579 Total $ 105,969 $ 36,860 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt [Abstract] | |
Long-term Debt | 8. Long-term Debt: December 31, 2014 December 31, 2015 $1.3 billion Senior Secured Term Loan B Facility $ 1,296,750 $ 1,283,750 $1.9 billion Secured Term Loan B Facility 1,876,250 1,857,250 $462 million Senior Secured Credit Facility - 432,821 7.25% Senior Unsecured Notes 500,000 229,411 6.50% Senior Secured Notes 800,000 607,742 Less: Deferred financing costs (100,550 ) (82,506 ) Total debt 4,372,450 4,328,468 Less: Current portion (19,858 ) (56,725 ) Long-term portion $ 4,352,592 $ 4,271,743 7.25% Senior Unsecured Notes due 2019 On March 26, 2014 the Company issued $500,000 aggregate principal amount of 7.25% Senior Unsecured Notes due 2019 (the "7.25% Senior Unsecured Notes"), offered in a private placement, resulting in net proceeds of approximately $493,625. The Senior Notes are unsecured obligations and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. The Company used the net proceeds from the offering of the 7.25% Senior Unsecured Notes, together with cash on hand, and repurchased $462,300 of its 9.5% Senior Unsecured Notes, of which $500,000 in aggregate principal amount was outstanding prior to closing of the 7.25% Senior Unsecured Notes Offering, at a tender premium of 105.375%, while the remaining $37,700 was redeemed at a redemption price of 104.5% on May 13, 2014. The 7.25% Senior Unsecured Notes are not guaranteed by any of the Company's subsidiaries. Upon a change of control, which would occur if 50% or more of the Company's shares are acquired by any person or group other than DryShips or its affiliates, the noteholders will have an option to require the Company to purchase all outstanding notes at a redemption price of 101% of the principal amount thereof plus accrued and unpaid interest to the date of purchase. The contractual semi-annual coupon interest rate is 7.25% per year. During the year ended December 31, 2015, a Company's wholly owned subsidiary has purchased in the open market an aggregate principal amount of $270,589 of these notes, resulting in a gain of $130,454 included in "Gain from repurchase of senior notes" in the accompanying consolidated statements of operations. The outstanding balance reported above, of $229,411, is net of the notes repurchased in the open market. 9.5% Senior Unsecured Notes due 2016 On April 27, 2011, the Company issued $500,000 aggregate principal amount of its 9.5% senior unsecured notes due 2016 (the "Senior Unsecured Notes") offered in a private placement, resulting in net proceeds of approximately $487,500. The 9.5% Senior Unsecured Notes were repurchased or redeemed by proceeds from the 7.25% Senior Unsecured Notes offering discussed above, together with cash on hand. 6.50% Senior Secured Notes due 2017 On September 20, 2012, the Company's wholly owned subsidiary Drill Rigs Holdings Inc. (the “Issuer"), issued $800,000 aggregate principal amount of 6.50% Senior Secured Notes due 2017 (the "Drill Rigs Senior Notes") offered in a private offering, resulting in net proceeds of approximately $781,965. The Company used a portion of the net proceeds of the notes to repay the full amount outstanding under its $1,040,000 senior secured credit facility as at September 20, 2012. The Drill Rigs Senior Notes are secured obligations and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. The Drill Rigs Senior Notes are fully and unconditionally guaranteed by the Company and certain of its existing and future subsidiaries (collectively, the "Issuer Subsidiary Guarantors" and, together with the Company, the "Guarantors"). The Drill Rigs Senior Notes and the Drill Rigs Senior Notes guarantees are secured, on a first priority basis, by a security interest on the Issuer's two semi-submersible offshore drilling units, the Leiv Eiriksson Eirik Raude Upon a change of control, which occurs if 50% or more of the Company's shares are acquired by any person or group other than DryShips or its affiliates, the Issuer will be required to make an offer to repurchase the Drill Rigs Senior Notes at a price equal to 101% of the principal amount thereof, plus any accrued and unpaid interest thereon to the date of repurchase. On or after October 1, 2015, the Issuer may, at its option, redeem all or a portion of the Drill Rigs Senior Notes, at one time or from time to time at 103.25% (from October 1, 2015 to September 30, 2016) or 100% (October 1, 2016 and thereafter) of the principal amount thereof, plus any accrued and unpaid interest thereon to the date of redemption. During the year ended December 31, 2015, a Company's wholly owned subsidiary has purchased in the open market an aggregate principal amount of $192,258 of these notes, resulting in a gain of $58,720 included in "Gain from repurchase of senior notes" in the accompanying consolidated statements of operations. The outstanding balance reported above, of $607,742, is net of the notes repurchased in the open market. $1.35 billion Senior Secured Credit Facility On February 28, 2013, Drillships Ocean Ventures Inc., the Company's wholly-owned subsidiary, entered into a secured term loan facilities agreement with a syndicate of lenders and DNB Bank ASA, as facility agent and security agent, in the amount of $1,350,000 to partially finance the construction costs of the Ocean Rig Mylos Ocean Rig Skyros Ocean Rig Athena. Ocean Rig Mylos Ocean Rig Skyros Ocean Rig Athena On July 25, 2014, this facility was repaid in full and replaced by the $1.3 billion Senior Secured Term Loan B Facility (see below). $1.3 billion Senior Secured Term Loan B Facility On July 25, 2014, the Company's wholly owned subsidiary, Drillships Ocean Ventures Inc., entered into a $1.3 billion Senior Secured Term Loan B ("New Term Loan B") facility to repay the $1.35 billion Senior Secured Credit Facility, which had an outstanding loan balance of approximately $1.3 billion on that date. The unamortized balance of deferred finance fees associated with the repaid loans, amounting to approximately $19,797, was written off in the consolidated statement of operations upon the extinguishment of the related debt in July 2014. In addition, restricted cash of $75,000 associated with the respective debt was released upon the repayment. The New Term Loan B facility which is secured primarily by first priority mortgages on the vessels, the Ocean Rig Mylos Ocean Rig Skyros Ocean Rig Athena $1.9 billion Term Loan B Facility On July 12, 2013, the Company, through its wholly-owned subsidiaries, Drillships Financing Holding Inc. ("DFHI") and Drillships Projects Inc., entered into a $1,800,000 senior secured term loan facility, comprised of tranche B-1 term loans in an aggregate principal amount equal to $975,000 ("Tranche B-1 Term Loans") and tranche B-2 term loans in an aggregate principal amount equal to $825,000 ("Tranche B-2 Term Loans" and, together with the Tranche B-1 Term Loans, the "Term Loans"), with respective maturity dates in the first quarter of 2021, subject to adjustment to the third quarter of 2020 in certain circumstances, and the third quarter of 2016. The Term Loans are initially guaranteed by the Company and certain existing and future subsidiaries of DFHI and are secured by certain assets of, and by a pledge of the stock of, DFHI and the subsidiary guarantors. The net proceeds of the Term Loans were used by the Company to repay in full the then outstanding balances of the $800,000 secured term loan agreement and the two $495,000 senior secured credit facilities, amounting to $1,519,168 in aggregate. The unamortized balance of the deferred finance fees associated with the repaid loans, amounting to approximately $23.3 million, was written off upon the extinguishment of the related debt in July 2013. In addition, restricted cash of $131.6 million associated with the respective loans were released upon the repayment. On July 26, 2013, the Company through its wholly-owned subsidiaries DFHI and Drillships Projects Inc. entered into an incremental amendment to the $1,800,000 senior term loan for additional tranche B-1 term loans in an aggregate principal amount of $100,000. On February 7, 2014, the Company refinanced its then existing short-term Tranche B-2 Term Loans with a fungible add-on to its existing long-term Tranche B-1 Term Loans. As a result of this refinancing, the total $1.9 billion of Tranche B-1 Term Loans will mature no earlier than the third quarter of 2020. $462 million Senior Secured Credit Facility On February 13, 2015, the Company's wholly owned subsidiary, Drillship Alonissos Owners Inc., entered into a secured term loan facility agreement with a syndicate of lenders and DNB Bank ASA, as facility agent and security agent, for up to $475,000 to partially finance the construction costs of the Ocean Rig Apollo Ocean Rig Apollo The Company's outstanding debt is secured by, among other things, first priority mortgages over the Company's operating drilling units, corporate guarantees, first priority assignments of all freights, earnings, insurances and requisition compensation relating to such drilling units and a pledge of the shares of capital stock of certain of the Company's subsidiaries. Certain of our debt instruments contain financial covenants, minimum coverage ratio requirements and minimum liquidity and working capital requirements and restrict, without the bank's prior consent, the Company's and its subsidiaries ability to, among other things, pay dividends, change the management and ownership of its drilling units, incur additional indebtedness, incur and create liens on its assets, and change in the general nature of the Company's business and require that the Company maintain an established place of business in the United States or the United Kingdom. Total interest and debt amortization cost incurred on long-term debt for the years ended December 31, 2013, 2014 and 2015, amounted to $228,992, $304,132 and $300,543 , respectively, of which $65,492, $37,342 and $26,055, respectively, were capitalized as part of the cost of the drilling units under construction. Total interest incurred and amortization of debt issuance cost on long-term debt, net of capitalized interest, are included in "Interest and finance costs" in the accompanying consolidated statement of operations. The aggregate available undrawn amounts under the Company's facilities at December 31, 2015, are nil. The Company's weighted average interest rates on the above bank loans and notes were 6.4%, 6.4% and 6.3%,as of December 31, 2013, 2014, and 2015, respectively. The bank loans are payable in U.S. Dollars in quarterly instalments with balloon payments due at maturity between March 2020 and July 2021. Loan movements for the Company's Senior Unsecured Notes, Drill Rigs Senior Notes, 7.25% Senior Unsecured Notes and secured credit facilities throughout 2015, is as follows: Loan Loan Agreement Date Original Amount December 31, 2014 New Loans Repayments/ Repurchase of senior notes December 31, 2015 Drill Rigs Senior Notes September 20, 2012 $ 800,000 800,000 - (192,258 ) 607,742 Term Loan B Facility July 12, 2013 1,900,000 1,876,250 - (19,000 ) 1,857,250 7.25% Senior Unsecured Notes March 26, 2014 500,000 500,000 - (270,589 ) 229,411 New Term Loan B Facility July 25, 2014 1,300,000 1,296,750 - (13,000 ) 1,283,750 Senior Secured Credit Facility February 13, 2015 $ 462,000 $ - $ 462,000 $ (29,179 ) $ 432,821 $ 4,473,000 $ 462,000 $ (524,026 ) $ 4,410,974 The annual principal payments required to be made after December 31, 2015, including balloon payments, totaling $4,410,974 due through July 2021, are as follows: 2016 70,905 2017 678,647 2018 70,905 2019 300,317 2020 and thereafter 3,290,200 Total principal payments 4,410,974 Less: Financing fees (82,506 ) Total debt $ 4,328,468 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | 9. 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. The Company recognizes all derivative instruments as either assets or liabilities at fair value on its consolidated balance sheets. Changes in the fair value of derivative instruments that have not been designated as hedging instruments are reported in the accompanying consolidated statement of operations. 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 also enters from time to time into foreign currency forward contracts in order to manage risks associated with fluctuations in foreign currencies. All of the Company's derivative transactions are entered into for risk management purposes. As of December 31, 2013, the Company had nine interest rate swaps, outstanding with a notional amount of $2.1 billion, maturing from September 2014 through November 2017. As of December 31, 2014, the Company had seven interest rate swaps outstanding, with a notional amount of $1.8 billion, maturing from April 2016 through November 2017. As of December 31, 2015, the Company had seven interest rate swaps outstanding, with a notional amount of $1.6 billion, maturing from April 2016 through November 2017. Effective January 1, 2011, the Company removed the designation of interest rate swaps previously designated as cash flow hedges and discontinued hedge accounting for the associated interest rate swaps. As a result, as of December 31, 2013, 2014 and 2015, these agreements do not qualify for hedge accounting and, as such, changes in their fair values are included in the accompanying consolidated statements of operations. Accumulated Other Comprehensive Loss also included realized losses on cash flow hedges associated with interest capitalized during prior years under "Advances for drilling units under construction" amounting to $27,776, which according to ASC 815-30-35 is being reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. As a result, during the years ended December 31, 2013, 2014 and 2015, amounts of $1,036, $1,034 and $1,035, respectively, were reclassified into the consolidated statements of operations. The estimated amount in other comprehensive income/ (loss) of cash flow hedge losses at December 31, 2015, that will be reclassified into earnings within the next twelve months, is $1,035. Tabular disclosure of financial instruments is as follows: Fair Values of Derivative Instruments in the Balance Sheets: Derivatives not designated as Hedging Instruments Balance Sheet Location December 31, 2014 Fair value December 31, 2015 Fair value Interest rate swaps Financial Instruments non-current assets $ 10,101 $ 3,494 Interest rate swaps Financial Instruments current liabilities (17,881 ) (8,931 ) Interest rate swaps Financial Instruments non-current liabilities (8,617 ) (2,743 ) Total derivatives $ (16,397 ) $ (8,180) The effect of Derivative Instruments on the Consolidated Statement of Operations: Amount of Gain/(Loss) Derivatives not designated as hedging instruments Location of Gain or (Loss) Recognized Year ended December 31, 2013 Year ended December 31, 2014 Year ended December 31, 2015 Interest rate swaps Gain/ (Loss) on interest rate swaps 8,616 (12,671 ) (11,513 ) Total $ 8,616 (12,671 ) $ (11,513) The carrying amounts of cash and cash equivalents, restricted cash, trade accounts receivable, and accounts payable and other current liabilities 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 floating rate loans. The fair value of the interest rate swaps was determined using a discounted cash flow method based on market-based LIBOR swap yield curves, taking into account current interest rates and the creditworthiness of both the financial instrument counterparty and the Company. The 7.25% Senior Unsecured Notes, the Drill Rigs Senior Notes and the Term Loan B Facilities have a fixed rate and their estimated fair values are determined through Level 2 inputs of the fair value hierarchy (quoted price in the over-the countermarket). While the $462 million Senior Secured Credit Facility, has a floating rate on LIBOR and its' carrying value is approximately the same as its' fair market value. The estimated fair value of the above 7.25% Senior Unsecured Notes and Drill Rigs Senior Notes, at December 31, 2014, was approximately $380,000 and $666,000, respectively while the loan balances were approximately the same as their fair market values, which had a carrying value net of finance fees of $492,214, $788,224, $1,825,671 and $1,266,341, respectively. The estimated fair value of the above 7.25% Senior Unsecured Notes, Drill Rigs Senior Notes, $1.9 billion Secured Term Loan B Facility and $1.3 billion Senior Secured Term Loan B Facility at December 31, 2015, is approximately $100,367, $357,431, $427,168 and 628,242 respectively. For the aforementioned senior notes and term loans their carrying value net of finance fees as at December 31, 2015, is $226,655, $601,845, $ 1,814,746 and $ 1,257,484, respectively. The guidance for fair value measurement 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. Fair value measurements are classified based upon inputs used to develop the measurement under the following hierarchy: 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. December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 3,494 3,494 $ - Interest rate swaps-liability position (11,674 ) (11,674 ) - Total $ (8,180) (8,180) $ - December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 10,101 - 10,101 $ - Interest rate swaps-liability position (26,498 ) - (26,498 ) - Total $ (16,397 ) - (16,397 ) $ - 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 Non-Recurring measurements: Long-lived assets $ - $ 610,000 $ - $ (414,986 ) Total $ - $ 610,000 $ - $ (414,986) As a result of the impairment analysis performed for the year ended December 31, 2015, the Company's two drilling units, with a carrying amount of $1,024,986 were written down to their fair value as determined based on the valuations of the independent valuators, resulting in an impairment charge of $414,986 which was included in the accompanying consolidated statement of operations for the year ended December 31, 2015 (Note 6). |
Common Stock and Additional Pai
Common Stock and Additional Paid-in Capital | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock and Additional Paid-in Capital [Abstract] | |
Common Stock and Additional Paid-in Capital | 10. Common Stock and Additional Paid-in Capital: Dividends: On May 8, 2014, the Company's Board of Directors declared a quarterly cash dividend with respect to the quarter ended March 31, 2014, of $0.19 per common share, to shareholders on record as of May 20, 2014. The dividend was paid in May 2014. On July 21, 2014, the Company's Board of Directors declared a quarterly cash dividend with respect to the quarter ended June 30, 2014, of $0.19 per common share, to shareholders on record as of August 1, 2014. The dividend was paid in August 2014. On October 15, 2014, the Company's Board of Directors declared a quarterly cash dividend with respect to the quarter ended September 30, 2014, of $0.19 per common share, to shareholders on record as of October 31, 2014. The dividend was paid in November 2014. On February 24, 2015, the Company' Board of Directors declared a quarterly cash dividend with respect to the quarter ended December 31, 2014, of $0.19 per common share, to its shareholders of record as of March 10, 2015. The dividend was paid in March 2015. On May 6, 2015, the Company's Board of Directors declared the fifth consecutive quarterly cash dividend with respect to the quarter ended March 31, 2015, of $0.19 per common share, to its shareholders of record as of May 22, 2015. The dividend was paid in May 2015. General Prior to December 8, 2010, the Company's authorized capital stock consisted of 500 common shares, par value $20.00 per share. During December 2010, the Company adopted, amended and restated articles of incorporation pursuant to which its authorized capital stock consisted of 250,000,000 common shares, par value $0.01 per share. On April 15, 2011, at the Company's Special Meeting of Shareholders, the Company's shareholders approved an increase in the Company's authorized share capital to 1,000,000,000 common shares and 500,000,000 preferred shares. All company's common stock has equal voting rights and participates equally in dividend distribution. Issuance of common shares On June 8, 2015, the Company 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, resulting in proceeds of $194,134, after deducting placement fees. As part of the offering, Mr. George Economou, the Company's Chairman, President and Chief Executive Officer, purchased $10,000, or 1,428,571 shares, of common stock in the offering at the public offering price. Treasury stock During the year ended December 31, 2015, the Company exchanged the $120,000 Exchangeable Promissory Note for an aggregate amount of 22,222,222 of the Company's shares owned by Dryships (Note 3). These shares were not retired and are held as treasury stock. Restricted stock awards On March 21, 2012, the Company's Board of Directors approved the 2012 Equity Incentive Plan (the "Plan") and reserved a total of 2,000,000 common shares. Under the Plan, officers, key employees and directors are eligible to receive awards of stock options, stock appreciation rights, restricted stock, restricted stock units, phantom stock units and unrestricted stock. On May 16, 2013, the Company's Compensation Committee approved the grant of 192,400 shares of non-vested common stock to the Company's employees. The shares vest over a period of three years. 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 $16.90 per share. On August 20, 2013, the Company's Compensation Committee approved a sign-on bonus of 150,000 shares of the Company's common stock to Azara, pursuant to a consultancy agreement with Azara effective January 1, 2013, relating to the services of Mr. George Economou as Chief Executive Officer of the Company. The shares vested over a period of two years. The stock based compensation was 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 March 31, 2014, the Company's Compensation Committee approved the grant of 161,200 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. 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 $17.79 per share. On August 19, 2014, the Compensation Committee approved a bonus in the form of 150,000 shares to be granted to Azara 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. 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 November 4, 2014, the Company's Compensation Committee approved the grant of 45,450 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. 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 $12.60 per share. On December 30, 2014, the Compensation Committee approved a bonus in the form of 300,000 shares to be granted to Azara 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. 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 $9.46 per share. On April 29, 2015, the Company's Compensation Committee approved the grant of 173,200 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. 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 $7.24 per share. On August 5, 2015, the Company's Compensation Committee approved the grant of 13,502 shares of non-vested common stock to employees of Ocean Rig. The shares vest over a period of three years. 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 $3.19 per share. As of December 31, 2015, 609,887 shares have vested, while 235,576 shares were forfeited due to employees' resignations. A summary of the status of Ocean Rig's non vested shares as of December 31, 2014 and 2015 and movement during the years then ended, is presented below. Number of non vested shares Weighted average grant date fair value per non vested shares Balance December 31, 2013 239,867 $ 17.15 Granted 656,650 13.76 Forfeited (78,576 ) 16.93 Vested (205,143 ) 17.31 Balance December 31, 2014 612,798 $ 13.49 Granted 186,702 6.95 Forfeited (63,950) 12.29 Vested (330,252 ) 13.33 Balance December 31, 2015 405,298 $ 10.80 Number of vested shares Weighted average grant date fair value per vested shares As at December 31, 2013 162,633 $ 16.90 Granted and vested 111,585 17.39 Non vested shares granted in prior years and vested 2014 93,558 17.20 Granted and vested shares in prior years, but cancelled during 2014 (58,324 ) 16.63 As at December 31, 2014 309,452 $ 17.22 Granted and vested 52,802 6.89 Non vested shares granted in prior years and vested 2015 277,450 14.56 Granted and vested shares in prior years, but cancelled during 2015 (29,817 ) 16.59 As at December 31, 2015 609,887 $ 15.15 As of December 31, 2014 and 2015, there was $6,235 and $2,299 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted by the Company, respectively. That cost is expected to be recognized over a period of 2 years. The amounts of $3,634, $3,576 and $3,676 represents the stock based compensation expense which are recorded in "General and administrative expenses", in the accompanying consolidated statements of operations for the years ended December 31, 2013, 2014 and 2015, respectively. The total fair value of shares vested during the years ended December 31, 2014 and 2015, was $2,383 and $611, respectively. As of December 31, 2015, there were 239,637 shares of common stock which had been granted to employees and vested but which had not yet been issued by the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated other comprehensive loss | 11. Accumulated Other Comprehensive Loss: The amounts in the accompanying balance sheets are analyzed as follows: December 31, 2014 2015 Cash flows hedges realized loss $ (27,222 ) $ (26,187 ) Actuarial pension gain 3,284 3,346 Total $ (23,938 ) $ (22,841) |
Interest and Finance Costs
Interest and Finance Costs | 12 Months Ended |
Dec. 31, 2015 | |
Interest and Finance Costs [Abstract] | |
Interest and Finance Costs | 12. Interest and Finance Costs: The amounts in the accompanying consolidated statements of operations are analyzed as follows: December 31, 2013 2014 2015 Interest costs on long term debt $ 190,195 $ 261,137 $ 276,510 Amortization and write off of financing fees 38,797 42,995 24,033 Discount on receivable from drilling contract - - 3,018 Capitalized borrowing costs (65,492 ) (37,342 ) (26,055 ) Commissions, commitment fees and other financial expenses 57,064 33,341 2,842 Total $ 220,564 $ 300,131 $ 280,348 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income Taxes: Ocean Rig UDW 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 the Company 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. The components of the Company's income/(losses) before taxes, after adjusting for impairment losses and gains from repurchases of senior notes, are as follows: Year ended December 31, 2013 2014 2015 Domestic income/ (loss) (Marshall Islands) $ (66,604 ) $ (161,913 ) $219,900 Foreign income 174,518 499,539 185,742 Total income before taxes, excluding impairment loss and gain from repurchases of senior notes $ 107,914 $ 337,626 $405,642 The components of the Company's tax expense were as follows: Year Ended December 31, 2013 2014 2015 Current Tax expense $ 44,591 $ 77,823 $99,816 Deferred Tax expense - - Income taxes $ 44,591 $ 77,823 $99,816 Effective tax rate 41.3 % 23.1 % 24.6% In 2015, approximately 90% of the current tax expense related to withholding taxes in Angola, Brazil, Norway and Congo. In 2014, approximately 64% of the current tax expense related to taxes in Angola, while in 2013 approximately 72% of the current tax expense was related to tax in Angola, Tanzania, Sierra Leone, Liberia and Gabon. Taxes have not been reflected in other comprehensive income/(loss) since the valuation allowances would result in no recognition of deferred tax. Year Ended December 31, Reconciliation of total tax expense: 2013 2014 2015 Differences in tax rates $ 89 $ - $ - Adjustments in respect to current income tax of previous years 683 - - Tax rate on interest 742 - - Effect of exchange rate differences 7 - - Income tax 43,070 70,441 94,331 Taxes on litigation matters subject to statutory rates, including interest and penalties - 7,382 5,485 Total $ 44,591 $ 77,823 $ 99,816 Ocean Rig has elected to use the statutory tax rate for each year based upon the location where the largest parts of its operations were domiciled. During 2013, 2014 and 2015, most of its activities were in the Republic of the Marshall Islands with tax rate of zero. Ocean Rig is subject to changes in tax laws, treaties, regulations and interpretations in and between the countries in which its subsidiaries operate. A material change in these tax laws, treaties, regulations and interpretations could result in a higher or lower effective tax rate on worldwide earnings. Deferred tax assets and liabilities are recognized for the anticipated future tax effects of temporary differences between the financial statement basis and the tax basis of the Company's assets and liabilities at the applicable tax rates in effect. The Company has not recognized any deferred tax liability, while the significant components of deferred tax assets are as follow: Year ended December 31, 2014 2015 Deferred tax assets Losses carried forward - 13,197 Total deferred tax assets $ - $ 13,197 Less: valuation allowance - (13,197 ) Total deferred tax assets, net $ - $ - A valuation allowance for deferred tax assets is recorded when it is more likely than not that some or all of the benefit from the deferred tax asset will not be realized. The Company provides a valuation allowance to offset deferred tax assets for carry forward of operating losses incurred during the year in certain jurisdictions and for other deferred tax assets where, in the Company's opinion, it is more likely than not that the financial statement benefit of these losses will not be realized. The Company provides a valuation allowance for foreign tax loss carry forward to reflect the possible expiration of these benefits prior to their utilization. As of December 31, 2015, the valuation allowance for deferred tax assets is $13,197. All earnings in foreign jurisdictions are permanently reinvested as the earnings are needed for working capital needs. Hence, no deferred tax liability has been recognized. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings/ (loss) per share : | |
Earnings per share | 14. Earnings per share For the years ended December 31, 2013 2014 2015 Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Income (numerator) Weighted- average number of outstanding share (denominator) Amount per share Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Net income $ 63,323 - $ -$ $ 259,803 - $ - 80,014 - - Less: Allocation of undistributed earnings to non-vested stock (102 ) - - (772 ) - - (1,175 ) - - Basic and diluted EPS attributable to common stockholders $ 63,221 131,727,504 0.48 $ 259,031 131,837,227 1.96 78,839 138,757,176 0.57 Non-vested share-based payment awards that contain rights to receive non forfeitable dividends or dividend equivalents (whether paid or unpaid) and participate equally in undistributed earnings are participating securities and, thus, are included in the two-class method of computing earnings per share for the year ended December 31, 2013, 2014 and 2015. For the years ended December 31, 2013, 2014 and 2015, non-vested participating restricted common stock were not included in the computation of diluted earnings per share because the effect is anti-dilutive. |
Geographic information for offs
Geographic information for offshore drilling operations - Revenue per country | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | 15. Geographic information for offshore drilling operations The revenue shown in the table below is based upon the location where the drilling takes place: Country 2013 2014 2015 Norway 157,740 220,044 231,189 Falklands - - 154,606 Brazil 353,397 581,635 581,438 Ivory Coast 86,486 97,232 33,723 Tanzania 72,083 - - Angola 227,603 807,742 527,098 Gabon/ West Africa 81,104 - - Congo - - 157,235 South Africa - 110,424 - Senegal 52,214 Liberia 55,601 - - Ireland 104,014 - - Sierra Leone 37,272 - - Other 4,950 - 10,697 Total service revenues $ 1,180,250 $ 1,817,077 1,748,200 The drilling units the Leiv Eiriksson, Eirik Raude Ocean Rig Corcovado Ocean Rig Olympia Ocean Rig Poseidon Ocean Rig Mykonos, Ocean Rig Mylos, Ocean Rig Skyros Ocean Rig Athena Ocean Rig Apollo Cerrado |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies 16.1 Legal proceedings Various claims, suits, and complaints, including those involving government regulations and product liability, arise in the ordinary course of the offshore drilling business. The Company has obtained insurance coverage for each drilling unit for the assessed market value of the drilling unit. However, such insurance coverage may not provide sufficient funds to protect the Company from all liabilities that could result from its operations in all situations. Risks against which the Company may not be fully insured or insurable for include environmental liabilities, which may result from a blow-out or similar accident, or liabilities resulting from reservoir damage alleged to have been caused by the negligence of the Company. The Company's loss of hire insurance coverage does not protect against loss of income from day one. It covers approximately one year for the loss of time but will be effective after 45 days' off-hire. During 2012, the Ocean Rig Corcovado Ocean Rig Corcovado Ocean Rig Mylos The occurrence of casualty or loss, against which the Company is not fully insured, could have a material adverse effect on the Company's results of operations and financial condition. As part of the Company's normal course of operations, the Company's customer may disagree on amounts due to the Company under the provision of the contracts which are normally settled through negotiations with the customer. Disputed amounts are normally reflected in revenues at such time as the Company reaches agreement with the customer on the amounts due. On May 10, 2013, Drillship Hydra Owners Inc., being the owning company of drilling unit the Ocean Rig Corcovado Ocean Rig Corcovado Ocean Rig Norway Operations Inc. ("OCR"), a subsidiary of the Company, was notified by a letter dated November 13, 2013 that arbitration proceedings were commenced against it by Westcon Yard AS of Norway ("Westcon"), in connection to an alleged outstanding unpaid amount of Norwegian Krone Seventy Seven Million Three Hundred Eighty Three Thousand Eight Hundred and Three and Fifty Eight Шre (NOK 77,383,803.58), $8.8 million (bas ed on based on the NOK/U.S. Dollar exchange rate as of December 31, 2015) plus interest and costs related to upgrades performed in the drilling unit the Leiv Eiriksson OCR Falklands Drilling Inc., a subsidiary of the Company, commenced arbitration proceedings against Premier Oil Plc. and Noble Energy Falklands Ltd. for terminating the contract on February 12, 2016, for the drilling unit Eirik Raude On March 7, 2016, two of the Company's subsidiaries commenced arbitration proceedings against Total E&P Angola for the termination of the contract with the drilling unit Ocean Rig Olympia Except for the matters discussed above, the Company is not a party to any material litigation where claims or counterclaims have been filed against the Company other than routine legal proceedings incidental to its business. 16.2 Purchase Obligations: The following table sets forth the Company's contractual purchase obligations as of December 31, 2015. 2016 2017 2018 2019 Total Drilling units building contracts $ 260,279 343,337 495,800 464,000 $ 1,563,416 Total obligations $ 260,279 343,337 495,800 464,000 $ 1,563,416 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events: 17.1 17.2 Ocean Rig Olympia 17.3 Ocean Rig Apollo 17.4 Ocean Rig Olympia 17.5 Leiv Eiriksson 17.6 |
Schedule I Of Financial Informa
Schedule I Of Financial Information Of Ocean Rig UDW Inc. (Parent Company Only) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. (Parent Company Only) [Abstract] | |
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. (Parent Company Only) | December 31, 2014 2015 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 60 $ 35 Other current assets 2,090 182 Total current assets 2,150 217 NON-CURRENT ASSETS: Investments in subsidiaries* 3,549,399 3,781,705 Due from related parties 117,219 - Total non-current assets 3,666,618 3,781,705 Total assets $ 3,668,768 $ 3,781,922 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Other current liabilities $ 10,278 $ 9,913 Total current liabilities 10,278 9,913 NON-CURRENT LIABILITIES Long term debt, net of current portion 492,214 497,244 Total non-current liabilities 492,214 497,244 STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and 2015, nil issued and outstanding at December 31, 2014 and 2015, respectively Common stock, $0.01par value; 1,000,000,000 shares authorized, at December 31, 2014 and 2015, 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and 2015, respectively 1,320 1,609 Treasury stock ; 0 shares at December 31, 2014 and $0.01 par value; 22,222,222 shares at December 31, 2015 (222 ) Additional paid-in capital 3,494,957 3,572,549 Accumulated other comprehensive loss (23,938 ) (22,841 ) Accumulated deficit (306,063 ) (276,330 ) Total stockholders' equity 3,166,276 3,274,765 Total liabilities and stockholders' equity $ 3,668,768 $ 3,781,922 * Eliminated in consolidation For the year ended December 31, 2013 2014 2014 EXPENSES: General and administrative expenses $ 8,565 $ 7,983 $ 6,924 Operating loss (8,565 ) (7,983 ) (6,924 ) OTHER INCOME / (EXPENSES): Interest and finance costs (53,193 ) (82,109 ) (65,988 ) Interest income - 1,383 - Loss on interest rate swaps (149 ) - - Other, net 2,358 6,224 5,041 Total other (expenses), net (50,984 ) (74,502 ) (60,947 ) Equity in earnings of subsidiaries* 122,872 342,288 147,885 Net income $ 63,323 $ 259,803 $ 80,014 Net Income To Common Stockholders 63,221 259,031 78,839 Earnings per common share, basic and diluted 0.48 1.96 0.57 Weighted average number of shares, basic and diluted 131,727,504 131,837,227 138,757,176 * Eliminated in consolidation For the year ended December 31, 2013 2014 2015 Net income $ 63,323 $ 259,803 $ 80,014 Other Comprehensive income / (loss): Reclassification of realized losses associated with capitalized interest to Consolidated Statement of Operations 1,036 1,034 1,035 Actuarial gains/(losses) 3,335 (1,518 ) 62 Other Comprehensive income / (loss) 4,371 (484) 1,097 Total Comprehensive income $ 67,694 $ 259,319 $ 81,111 For the year ended December 31, 2013 2014 2015 Net Cash Used in Operating Activities $ (62,302 ) $ (88,302 ) $ 237,535 Cash Flows from Investing Activities: Investments in subsidiaries 61,406 289,654 (379,993 ) Loan to parent - (120,000 ) - Proceeds from arrangement fees - 3,000 - Net Cash Provided by Investing Activities 61,406 172,654 (379,993) Cash Flows from Financing Activities: Proceeds from senior notes - 500,000 Payments of senior notes - (500,000 ) Dividends paid - (75,194 ) (50,281 ) Net proceeds from common stock issuance 192,714 Payments for issuance of subsidiaries shares - (466 ) Payment of financing fees - (8,690 ) Net Cash used in Financing Activities - (84,350) 142,433 Net increase/(decrease) in cash and cash equivalents (896 ) 2 (25 ) Cash and cash equivalents at beginning of year 954 58 60 Cash and cash equivalents at end of year $ 58 $ 60 $ 35 Schedule I- Condensed Financial Information of Ocean Rig UDW Inc. (Parent Company Only) In the condensed financial information of the Parent Company, the Parent Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries. There are no legal or regulatory restrictions on the Parent Company's ability to obtain funds from its subsidiaries through dividends, loans or advances sufficient to satisfy the obligations discussed below that are due on or before December 31, 2016. On April 27, 2011, the Parent Company issued $500,000 aggregate principal amount of 9.5% Senior Unsecured Notes due 2016. The notes were unsecured obligations and ranked senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. The 9.5% Senior Unsecured Notes were repurchased or redeemed in connection with the 7.25% Senior Unsecured Notes offering discussed below. On March 26, 2014 the Parent Company issued $500,000 aggregate principal amount of 7.25% senior unsecured notes due 2019. The notes are unsecured obligations and rank senior in right of payment to any future subordinated indebtedness and equally in right of payment to all of its existing and future unsecured senior indebtedness. On November 18, 2014, the Parent Company entered into a $120,000 unsecured facility with its former parent company, DryShips. The loan from the Parent Company to DryShips bore interest at a LIBOR plus margin rate and was due in May 2016. During the year ended December 31, 2015, the Parent Company exchanged the $120,000 unsecured facility for an aggregate amount of 22,222,222 of the Company's shares owned by Dryships. These shares were not retired and are held as treasury stock. The Parent Company is guarantor on the $1,300,000 facilities, the $1,900,000 facilities, the $462,000 facility and the 6.5% Senior Secured Notes due 2017 described in Note 8 "Long-term Debt" to the consolidated financial statements. As of December 31, 2015, the amount outstanding relating to these three facilities amounted to $3,573,821 in aggregate and the amount outstanding relating to the 6.5% Senior Secured Notes amounted to $607,742. During the year ended December 31, 2015, the Parent Company paid dividends of $50,281. The condensed financial information of the Parent Company should be read in conjunction with the Company's consolidated financial statements. |
Significant Accounting polici26
Significant Accounting policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting policies [Abstract] | |
Principles of consolidation | (a) Principles of consolidation: |
Use of estimates | (b) Use of estimates: |
Comprehensive income/(loss) | (c) Comprehensive income/(loss): During 2013, the Company adopted the requirements of Accounting Standard Update ("ASU") 2013-02, "Comprehensive Income (Topic 220) - Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income". The objective of this amendment is to improve the reporting of reclassifications out of accumulated other comprehensive income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under US GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under US GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under US GAAP that provide additional detail about those amounts. |
Cash and Cash equivalents | (d) Cash and cash equivalents: |
Restricted cash | (e) Restricted cash: |
Trade accounts receivable net | (f) Trade accounts receivable net: |
Concentration of credit risk | (g) Concentration of credit risk: The Company has made advances for the construction of drilling units in a major shipyard in Korea. The ownership of the drilling units is transferred from the yard to the Company at delivery. As of December 31, 2015, cumulative installment payments made to the yard amounted to approximately $333,632 for the three drilling units under construction (Note 5). These installment payments are secured with irrevocable letters of guarantee, or "refund guarantees", issued by financial institutions. |
Advances for drilling units under construction and related costs | (h) Advances for drilling units under construction and related costs: |
Capitalized interest | (i) Capitalized interest: |
Insurance claims | (j) Insurance claims: |
Foreign currency translation | (k) Foreign currency translation: |
Drilling Units, Machinery and Equipment, net | (l) Drilling units, machinery and equipment, net: |
Impairment of long-lived assets | (m) Impairment of long-lived assets: In developing estimates of future undiscounted cash flows, the Company makes assumptions and estimates about the drilling units future performance, with the significant assumptions being related to drilling rates, fleet utilization, operating expenses, capital expenditures, class survey costs, residual value and the estimated remaining useful life of each drilling unit. The projected net operating cash flows are determined by considering the drilling revenues from existing drilling contracts for the fixed days, while for the unfixed days the Company uses an estimated daily rate equivalent by utilizing available market data. The salvage value used in the impairment test is estimated to be $35,000 and $50,000 for the drilling rigs and drillships, respectively in accordance with the Company's depreciation policy. The remaining significant assumptions used to develop estimates of future undiscounted cash flows are based on historical trends as well as future expectations. Although the Company believes that the assumptions used to evaluate potential impairment are reasonable and appropriate, such assumptions are highly subjective. If the Company's estimate of undiscounted future cash flows for any drilling unit is lower than the carrying value, the carrying value is written down, by recording a charge to operations, to the vessel's fair market value if the fair market value is lower than the vessel's carrying value. The fair market value for the drilling unit is obtained by independent appraisals. The Company's analysis for the year ended December 31, 2015, also involved sensitivity tests on the off-hire days, allowing for variances ranging from 97.5% to 92.5%. As a result of the impairment review, the Company determined that the carrying amounts of its assets held for use were recoverable and therefore, concluded that no impairment loss was necessary for 2013, 2014. For the year ended December 31, 2015, as a result of the impairment review, the Company determined that the carrying amount of two drilling units was not recoverable and, therefore, a charge of $414,986 was recognized and included in "Impairment loss", in the accompanying consolidated statement of operations (Note 6) . |
Class costs | (n) Class costs: |
Deferred financing costs | (o) Deferred financing costs: |
Revenue and related expenses | (p) Revenue and related expenses: Revenues: (i) Well contracts: (ii) Term contracts: |
Earnings / (loss) per common share | (q) Earnings / (loss) per common share: |
Segment reporting | (r) Segment reporting: |
Financial instruments | (s) Financial instruments : (i) Hedge accounting: The Company is party to interest swap agreements where it receives a floating interest rate and pays a fixed interest rate for a certain period. Contracts which meet the strict criteria for hedge accounting are accounted for as cash flow hedges. A cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability, or a highly probable forecasted transaction that could affect profit or loss. The effective portion of the gain or loss on the hedging instrument is recognized directly as a component of "Accumulated other comprehensive income/ (loss)" in equity, while any ineffective portion, if any, is recognized immediately in current period earnings. The Company discontinues cash flow hedge accounting if the hedging instrument expires and it no longer meets the criteria for hedge accounting or designation is revoked by the Company. At that time, any cumulative gain or loss on the hedging instrument recognized in equity is kept in equity until the forecasted transaction occurs. When the forecasted transaction occurs, any cumulative gain or loss on the hedging instrument is recognized in the consolidated statement of operations. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognized in equity is transferred to net profit or loss for the year as financial income or expense. (ii) Other derivatives: |
Fair value measurements | (t) Fair value measurements: |
Income Taxes | (u) Income taxes: |
Commitments and contingencies | (v) Commitments and contingencies: |
Stock-based compensation | (w) Stock-based compensation: |
Inventories | (x) Inventories |
New accounting pronouncements | (y) Recent accounting pronouncements: Inventories: Consolidation: Revenue from Contracts with Customers: Leases: |
Basis of Presentation and Gen27
Basis of Presentation and General Infomation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Basis of Presentation and General Information [Abstract] | |
Schedule of revenue by major charterer | Year ended December 31, 2013 2014 2015 Customer A - 14 % 14% Customer B 33 % 18 % 19% Customer C 13 % 12 % 13% Customer D 18 % 30 % 15% Customer E 12 % 14 % 13% Customer F - - 15% |
Transactions with Related Par28
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Transactions with Related Parties [Abstract] | |
Schedule of related party transactions | Year ended December 31, 2014 2015 Balance Sheet Due from a related party, non-current 117,219 - Due from related party, non-current - Total 117,219 - Due to related parties 11,287 - Due to related parties - Total 11,287 - Advances for drilling units under construction and related costs $ 1,546 $ 394 Drilling units, machinery and equipment, net $ 2,885 $ 2,961 Year ended December 31, Statement of Operations 2013 2014 2015 Service Revenue, net 10,786 16,826 16,524 General and administrative expenses 27,181 32,660 7,409 Interest income $ - $ 1,164 $ 6,024 Amortization and write - off of financing fees $ - $ - $ 2,781 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Current Assets [Abstract] | |
Other Current Assets | December 31, 2014 2015 Inventories $ 6,609 $ 18,088 Deferred mobilization expenses 66,169 43,825 Prepayments and advances 22,880 20,607 Other 5,850 2,013 Total $ 101,508 $ 84,533 |
Advances for drilling units u30
Advances for drilling units under construction and related costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Advances For Drilling Units Under Construction And Related Costs [Abstract] | |
Advances for drilling units under construction and related costs | December 31, 2014 2015 Balance at beginning of year $ 662,313 $ 622,507 Advances for drilling units under construction and related costs 688,832 500,031 Drilling units delivered (728,638 ) (727,686 Balance at end of year $ 622,507 $ 394,852 |
Drilling units, machinery and31
Drilling units, machinery and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Drilling Units, Machinery And Equipment, Net [Abstract] | |
Drilling units, machinery and equipment, net | Cost Accumulated Depreciation Net Book Value Balance December 31, 2013 $ 6,578,940 (801,915 ) $ 5,777,025 Additions/ Transfer from drilling units under construction 752,432 - 752,432 Depreciation - (321,824 ) (321,824 Balance December 31, 2014 $ 7,331,372 $ (1,123,739 ) $ 6,207,633 Additions/ Transfer from drilling units under construction 909,830 - 909,830 Disposal of assets (5,477 ) - (5,477 ) Impairment loss (976,730 ) 561,744 (414,986 ) Depreciation - (360,108 ) (360,108 ) Balance December 31, 2015 $ 7,258,995 (922,103) 6,336,892 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Finite Lived Intangible Assets Future Amortization | |
Schedule of Finite Lived Intangible Assets Future Amortization Expense | December 31, 2014 2015 Deferred mobilization expenses $ 43,327 $ 23,992 Intangible assets, net 4,732 3,289 Prepaid investments 57,910 9,579 Total $ 105,969 $ 36,860 |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other non-current assets [Abstract] | |
Other non-current assets | December 31, 2014 December 31, 2015 $1.3 billion Senior Secured Term Loan B Facility $ 1,296,750 $ 1,283,750 $1.9 billion Secured Term Loan B Facility 1,876,250 1,857,250 $462 million Senior Secured Credit Facility - 432,821 7.25% Senior Unsecured Notes 500,000 229,411 6.50% Senior Secured Notes 800,000 607,742 Less: Deferred financing costs (100,550 ) (82,506 ) Total debt 4,372,450 4,328,468 Less: Current portion (19,858 ) (56,725 ) Long-term portion $ 4,352,592 $ 4,271,743 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt [Abstract] | |
Loan movements for Company's debt | Loan Loan Agreement Date Original Amount December 31, 2014 New Loans Repayments/ Repurchase of senior notes December 31, 2015 Drill Rigs Senior Notes September 20, 2012 $ 800,000 800,000 - (192,258 ) 607,742 Term Loan B Facility July 12, 2013 1,900,000 1,876,250 - (19,000 ) 1,857,250 7.25% Senior Unsecured Notes March 26, 2014 500,000 500,000 - (270,589 ) 229,411 New Term Loan B Facility July 25, 2014 1,300,000 1,296,750 - (13,000 ) 1,283,750 Senior Secured Credit Facility February 13, 2015 $ 462,000 $ - $ 462,000 $ (29,179 ) $ 432,821 $ 4,473,000 $ 462,000 $ (524,026 ) $ 4,410,974 |
Annual principal payments | 2016 70,905 2017 678,647 2018 70,905 2019 300,317 2020 and thereafter 3,290,200 Total principal payments 4,410,974 Less: Financing fees (82,506 ) Total debt $ 4,328,468 |
Financial Instruments and Fai35
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair Values of Derivative Instruments in the Statement of Financial Position and Statement of Operations | Derivatives not designated as Hedging Instruments Balance Sheet Location December 31, 2014 Fair value December 31, 2015 Fair value Interest rate swaps Financial Instruments non-current assets $ 10,101 $ 3,494 Interest rate swaps Financial Instruments current liabilities (17,881 ) (8,931 ) Interest rate swaps Financial Instruments non-current liabilities (8,617 ) (2,743 ) Total derivatives $ (16,397 ) $ (8,180) Amount of Gain/(Loss) Derivatives not designated as hedging instruments Location of Gain or (Loss) Recognized Year ended December 31, 2013 Year ended December 31, 2014 Year ended December 31, 2015 Interest rate swaps Gain/ (Loss) on interest rate swaps 8,616 (12,671 ) (11,513 ) Total $ 8,616 (12,671 ) $ (11,513) |
Schedule of amounts recognized in other comprehensive income/ (loss) | December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 3,494 3,494 $ - Interest rate swaps-liability position (11,674 ) (11,674 ) - Total $ (8,180) (8,180) $ - December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Interest rate swaps-asset position $ 10,101 - 10,101 $ - Interest rate swaps-liability position (26,498 ) - (26,498 ) - Total $ (16,397 ) - (16,397 ) $ - |
Recurring measurements | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) Impairment loss Non-Recurring measurements: Long-lived assets $ - $ 610,000 $ - $ (414,986 ) Total $ - $ 610,000 $ - $ (414,986) |
Common Stock and Additional P36
Common Stock and Additional Paid-in Capital (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock and Additional Paid-in Capital [Abstract] | |
Common Stock and Additional Paid-in Capital | Number of non vested shares Weighted average grant date fair value per non vested shares Balance December 31, 2013 239,867 $ 17.15 Granted 656,650 13.76 Forfeited (78,576 ) 16.93 Vested (205,143 ) 17.31 Balance December 31, 2014 612,798 $ 13.49 Granted 186,702 6.95 Forfeited (63,950) 12.29 Vested (330,252 ) 13.33 Balance December 31, 2015 405,298 $ 10.80 Number of vested shares Weighted average grant date fair value per vested shares As at December 31, 2013 162,633 $ 16.90 Granted and vested 111,585 17.39 Non vested shares granted in prior years and vested 2014 93,558 17.20 Granted and vested shares in prior years, but cancelled during 2014 (58,324 ) 16.63 As at December 31, 2014 309,452 $ 17.22 Granted and vested 52,802 6.89 Non vested shares granted in prior years and vested 2015 277,450 14.56 Granted and vested shares in prior years, but cancelled during 2015 (29,817 ) 16.59 As at December 31, 2015 609,887 $ 15.15 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | December 31, 2014 2015 Cash flows hedges realized loss $ (27,222 ) $ (26,187 ) Actuarial pension gain 3,284 3,346 Total $ (23,938 ) $ (22,841) |
Interest and Finance Costs (Tab
Interest and Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest and Finance Costs [Abstract] | |
Interest And Finance Costs | December 31, 2013 2014 2015 Interest costs on long term debt $ 190,195 $ 261,137 $ 276,510 Amortization and write off of financing fees 38,797 42,995 24,033 Discount on receivable from drilling contract - - 3,018 Capitalized borrowing costs (65,492 ) (37,342 ) (26,055 ) Commissions, commitment fees and other financial expenses 57,064 33,341 2,842 Total $ 220,564 $ 300,131 $ 280,348 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of income before income tax, domestic and foreign | Year ended December 31, 2013 2014 2015 Domestic income/ (loss) (Marshall Islands) $ (66,604 ) $ (161,913 ) $219,900 Foreign income 174,518 499,539 185,742 Total income before taxes, excluding impairment loss and gain from repurchases of senior notes $ 107,914 $ 337,626 $405,642 |
Income tax expense statutory tax rate | Year Ended December 31, 2013 2014 2015 Current Tax expense $ 44,591 $ 77,823 $99,816 Deferred Tax expense - - Income taxes $ 44,591 $ 77,823 $99,816 Effective tax rate 41.3 % 23.1 % 24.6% |
Schedule of reconciliation of total tax expense | Year Ended December 31, Reconciliation of total tax expense: 2013 2014 2015 Differences in tax rates $ 89 $ - $ - Adjustments in respect to current income tax of previous years 683 - - Tax rate on interest 742 - - Effect of exchange rate differences 7 - - Income tax 43,070 70,441 94,331 Taxes on litigation matters subject to statutory rates, including interest and penalties - 7,382 5,485 Total $ 44,591 $ 77,823 $ 99,816 |
Schedule of deferred tax assets and liabilities | Year ended December 31, 2014 2015 Deferred tax assets Losses carried forward - 13,197 Total deferred tax assets $ - $ 13,197 Less: valuation allowance - (13,197 ) Total deferred tax assets, net $ - $ - |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings/ (loss) per share : | |
Schedule of Earnigns per share | For the years ended December 31, 2013 2014 2015 Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Income (numerator) Weighted- average number of outstanding share (denominator) Amount per share Income (numerator) Weighted- average number of outstanding shares (denominator) Amount per share Net income $ 63,323 - $ -$ $ 259,803 - $ - 80,014 - - Less: Allocation of undistributed earnings to non-vested stock (102 ) - - (772 ) - - (1,175 ) - - Basic and diluted EPS attributable to common stockholders $ 63,221 131,727,504 0.48 $ 259,031 131,837,227 1.96 78,839 138,757,176 0.57 |
Geographic information for of41
Geographic information for offshore drilling operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Revenue per country | Country 2013 2014 2015 Norway 157,740 220,044 231,189 Falklands - - 154,606 Brazil 353,397 581,635 581,438 Ivory Coast 86,486 97,232 33,723 Tanzania 72,083 - - Angola 227,603 807,742 527,098 Gabon/ West Africa 81,104 - - Congo - - 157,235 South Africa - 110,424 - Senegal 52,214 Liberia 55,601 - - Ireland 104,014 - - Sierra Leone 37,272 - - Other 4,950 - 10,697 Total service revenues $ 1,180,250 $ 1,817,077 1,748,200 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Purchase obligations | 2016 2017 2018 2019 Total Drilling units building contracts $ 260,279 343,337 495,800 464,000 $ 1,563,416 Total obligations $ 260,279 343,337 495,800 464,000 $ 1,563,416 |
Schedule Of Financial Informati
Schedule Of Financial Information Of Ocean Rig UDW Inc. (Parent Company Only) (Tables) - Ocean Rig UDW Inc | 12 Months Ended |
Dec. 31, 2015 | |
Balance Sheet | December 31, 2014 2015 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 60 $ 35 Other current assets 2,090 182 Total current assets 2,150 217 NON-CURRENT ASSETS: Investments in subsidiaries* 3,549,399 3,781,705 Due from related parties 117,219 - Total non-current assets 3,666,618 3,781,705 Total assets $ 3,668,768 $ 3,781,922 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Other current liabilities $ 10,278 $ 9,913 Total current liabilities 10,278 9,913 NON-CURRENT LIABILITIES Long term debt, net of current portion 492,214 497,244 Total non-current liabilities 492,214 497,244 STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and 2015, nil issued and outstanding at December 31, 2014 and 2015, respectively Common stock, $0.01par value; 1,000,000,000 shares authorized, at December 31, 2014 and 2015, 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and 2015, respectively 1,320 1,609 Treasury stock ; 0 shares at December 31, 2014 and $0.01 par value; 22,222,222 shares at December 31, 2015 (222 ) Additional paid-in capital 3,494,957 3,572,549 Accumulated other comprehensive loss (23,938 ) (22,841 ) Accumulated deficit (306,063 ) (276,330 ) Total stockholders' equity 3,166,276 3,274,765 Total liabilities and stockholders' equity $ 3,668,768 $ 3,781,922 |
Statements of Operations | For the year ended December 31, 2013 2014 2014 EXPENSES: General and administrative expenses $ 8,565 $ 7,983 $ 6,924 Operating loss (8,565 ) (7,983 ) (6,924 ) OTHER INCOME / (EXPENSES): Interest and finance costs (53,193 ) (82,109 ) (65,988 ) Interest income - 1,383 - Loss on interest rate swaps (149 ) - - Other, net 2,358 6,224 5,041 Total other (expenses), net (50,984 ) (74,502 ) (60,947 ) Equity in earnings of subsidiaries* 122,872 342,288 147,885 Net income $ 63,323 $ 259,803 $ 80,014 Net Income To Common Stockholders 63,221 259,031 78,839 Earnings per common share, basic and diluted 0.48 1.96 0.57 Weighted average number of shares, basic and diluted 131,727,504 131,837,227 138,757,176 |
Schedule of Compehensive Income/ (loss) | For the year ended December 31, 2013 2014 2015 Net income $ 63,323 $ 259,803 $ 80,014 Other Comprehensive income / (loss): Reclassification of realized losses associated with capitalized interest to Consolidated Statement of Operations 1,036 1,034 1,035 Actuarial gains/(losses) 3,335 (1,518 ) 62 Other Comprehensive income / (loss) 4,371 (484) 1,097 Total Comprehensive income $ 67,694 $ 259,319 $ 81,111 |
Statements Of Cash flows | For the year ended December 31, 2013 2014 2015 Net Cash Used in Operating Activities $ (62,302 ) $ (88,302 ) $ 237,535 Cash Flows from Investing Activities: Investments in subsidiaries 61,406 289,654 (379,993 ) Loan to parent - (120,000 ) - Proceeds from arrangement fees - 3,000 - Net Cash Provided by Investing Activities 61,406 172,654 (379,993) Cash Flows from Financing Activities: Proceeds from senior notes - 500,000 Payments of senior notes - (500,000 ) Dividends paid - (75,194 ) (50,281 ) Net proceeds from common stock issuance 192,714 Payments for issuance of subsidiaries shares - (466 ) Payment of financing fees - (8,690 ) Net Cash used in Financing Activities - (84,350) 142,433 Net increase/(decrease) in cash and cash equivalents (896 ) 2 (25 ) Cash and cash equivalents at beginning of year 954 58 60 Cash and cash equivalents at end of year $ 58 $ 60 $ 35 |
Basis of Presentanion and Gener
Basis of Presentanion and General Information (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer A | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 14.00% | 14.00% | 0.00% |
Customer B | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 19.00% | 18.00% | 33.00% |
Customer C | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 13.00% | 12.00% | 13.00% |
Customer D | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 15.00% | 30.00% | 18.00% |
Customer E | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 13.00% | 14.00% | 12.00% |
Customer F | |||
Concentration Risk [Line Items] | |||
Major customer revenue percentage | 15.00% | 0.00% | 0.00% |
Significant Accounting polici45
Significant Accounting policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
VIE, total assets | $ 35,362 | $ 64,314 | |
VIE, total liabillities | 77,647 | 65,358 | |
VIE, net assets | (42,285) | (1,044) | |
Advances for drilling units under construction | 394,852 | 622,507 | $ 662,313 |
Capitalized interest | 26,055 | 37,342 | 65,492 |
Amortization and write off of financing costs | 24,033 | 42,995 | 38,797 |
Impairment | $ 414,986 | 0 | 0 |
Bare deck | |||
Useful life | 30 years | ||
Drillships | |||
Residual value | $ 50,000 | 50,000 | 50,000 |
Drilling Rigs | |||
Residual value | $ 35,000 | $ 35,000 | $ 35,000 |
Drilling units | |||
Depreciation method | Straight-line basis | ||
Variances on drilling units rates upper limit | 97.50% | ||
Variances on drilling units rates lower limit | 92.50% | ||
Impairment | $ 414,986 | ||
Cumulative installment payments made to Samsung for the three drilling units | |||
Advances for drilling units under construction | $ 333,632 | ||
Minimum | Other asset parts | |||
Useful life | 5 years | ||
Maximum | Other asset parts | |||
Useful life | 15 years |
Transaction with Related Partie
Transaction with Related Parties - Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Due from a related party, non-current | $ 0 | $ 117,219 | |
Due to related parties | 0 | 11,287 | |
Advances for drilling units under construction and related costs | 394,852 | 622,507 | $ 662,313 |
Drilling units, machinery and equipment, net | 6,336,892 | 6,207,633 | |
Related Party | |||
Due from a related party, non-current | 0 | 117,219 | |
Due to related parties | 0 | 11,287 | |
Advances for drilling units under construction and related costs | 394 | 1,546 | |
Drilling units, machinery and equipment, net | $ 2,961 | $ 2,885 |
Transaction with Related Part47
Transaction with Related Parties - Statement of Operations (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
General and administrative expenses: | |||
General and administrative expenses | $ 100,314 | $ 131,745 | $ 126,868 |
Amortization of CEO's stock based compensation | 3,676 | 3,576 | 3,634 |
Amortization and write - off of financing fees | 24,033 | 42,995 | 38,797 |
Related Party | |||
Service Revenue, net | 16,524 | 16,826 | 10,786 |
General and administrative expenses: | |||
General and administrative expenses | 7,409 | 32,660 | 27,181 |
Interest income | 6,024 | 1,164 | 0 |
Amortization and write - off of financing fees | $ 2,781 | $ 0 | $ 0 |
Transactions with Related Par48
Transactions with Related Parties - Cardiff Drilling, Vivid, Basset, Steel, Azara, Dryships (Details) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Jun. 04, 2015 | Aug. 13, 2015 | Jul. 29, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Nov. 18, 2014 | |
Related Party Transaction [Line Items] | ||||||||
Unsecured debt to former parent company | $ 0 | $ 117,219 | $ 0 | |||||
Interest income (Note 3) | 9,811 | 12,227 | $ 9,595 | |||||
Dividends paid | $ 50,281 | $ 75,194 | $ 0 | |||||
Steel Wheel Investments Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership in Ocean Rig | 1,570,226 | |||||||
DryShips Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Unsecured debt to former parent company | $ 120,000 | |||||||
Debt instrument description | LIBOR | |||||||
Maturity Date Of Loan | May 2,016 | |||||||
Interest income (Note 3) | $ 8,805 | |||||||
Dividends paid | 29,755 | |||||||
Exchange of debt instrument with shares | DryShips Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership in Ocean Rig | 4,444,444 | |||||||
Unsecured debt to former parent company | $ 40,000 | $ 120,000 | $ 120,000 | |||||
Number of shares pledged as security | 20,555,556 | |||||||
Exchange of $120.0 million Exchangeable Promissory Note | DryShips Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership in Ocean Rig | 17,777,778 | |||||||
Due from a related party, current | $ 80,000 | |||||||
Global Services Agreement January 2013 | Cardiff Drilling Inc. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Commissions in connection with employment arrangements | 1.00% | |||||||
Commission on purchase and sale activities | 0.75% | |||||||
Duration of consultancy agreement | 5 years | |||||||
Consultancy Agreement January 2013 | Vivid Finance Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Commission on financing related services | 0.20% | |||||||
Duration of consultancy agreement | 5 years | |||||||
Consultancy Agreement January 2013 | Profits at least 10% of the invested amount | Vivid Finance Limited | ||||||||
Related Party Transaction [Line Items] | ||||||||
Commission fee on profits | 30.00% | |||||||
Consultancy Agreement 2012 | Basset | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership in Ocean Rig | 114,286 |
Transactions with Related Par49
Transactions with Related Parties - CEO & Members of BoD (Details) $ in Thousands | 5 Months Ended |
Jun. 08, 2015USD ($)shares | |
Related Party Transaction [Line Items] | |
Stock Issued During Period Shares New Issues | 28,571,428 |
Chairman, President and Chief Executive Officer | |
Related Party Transaction [Line Items] | |
Sale Of Stock Consideration Received Per Transaction | $ | $ 10,000 |
Stock Issued During Period Shares New Issues | 1,428,571 |
Percentage Of Shareholder | 5.40% |
Other Current Assets (Table) (D
Other Current Assets (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Current Assets [Abstract] | ||
Inventories | $ 18,088 | $ 6,609 |
Deferred mobilization expenses | 43,825 | 66,169 |
Prepayments and advances | 20,607 | 22,880 |
Other | 2,013 | 5,850 |
Total | $ 84,533 | $ 101,508 |
Advances for drilling units u51
Advances for drilling units under construction and related costs (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Advances For Drilling Units Under Construction And Related Costs [Abstract] | ||
Balance at beginning of year | $ 622,507 | $ 662,313 |
Advances for drilling units under construction and related costs | 500,031 | 688,832 |
Drilling units delivered | (727,686) | (728,638) |
Balance at end of year | $ 394,852 | $ 622,507 |
Advances for drilling units u52
Advances for drilling units under construction and related costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advances for drilling units under construction | $ 394,852 | $ 622,507 | $ 662,313 |
Ocean Rig Athena | |||
Delivery Date | March 24, 2014 | ||
Ocean Rig Apollo | |||
Delivery Date | March 5, 2015 | ||
Ocean Rig Santorini | |||
Price per drilling unit | $ 679,470 | ||
Advances for drilling units under construction | $ 148,632 | ||
Drilling units delivery | 2,017 | ||
Ocean Rig Crete | |||
Price per drilling unit | $ 743,000 | ||
Advances for drilling units under construction | $ 108,400 | ||
Drilling units delivery | 2,018 | ||
Ocean Rig Amorgos | |||
Price per drilling unit | $ 743,000 | ||
Advances for drilling units under construction | $ 76,600 | ||
Drilling units delivery | 2,019 |
Drilling units, machinery and53
Drilling units, machinery and equipment, net (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Balance | $ 6,207,633 | ||
Impairment loss | 414,986 | $ 0 | $ 0 |
Balance | 6,336,892 | 6,207,633 | |
Drilling units, machinery and equipment | Cost | |||
Property, Plant and Equipment [Line Items] | |||
Balance | 7,331,372 | 6,578,940 | |
Additions / Transfer from drilling units under construction | 909,830 | 752,432 | |
Disposal of assets | (5,477) | ||
Impairment loss | (976,730) | ||
Balance | 7,258,995 | 7,331,372 | 6,578,940 |
Drilling units, machinery and equipment | Accumulated Depreciation | |||
Property, Plant and Equipment [Line Items] | |||
Balance | (1,123,739) | (801,915) | |
Impairment loss | 561,744 | ||
Depreciation | (360,108) | (321,824) | |
Balance | (922,103) | (1,123,739) | (801,915) |
Drilling units, machinery and equipment | Net Book Value | |||
Property, Plant and Equipment [Line Items] | |||
Balance | 6,207,633 | 5,777,025 | |
Additions / Transfer from drilling units under construction | 909,830 | 752,432 | |
Disposal of assets | (5,477) | ||
Impairment loss | (414,986) | ||
Depreciation | (360,108) | (321,824) | |
Balance | $ 6,336,892 | $ 6,207,633 | $ 5,777,025 |
Drilling units, machinery and54
Drilling units, machinery and equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment loss | $ 414,986 | $ 0 | $ 0 |
Other non-current assets (Tab55
Other non-current assets (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other non-current assets [Abstract] | ||
Deferred mobilization expenses | $ 23,992 | $ 43,327 |
Intangible assets, net | 3,289 | 4,732 |
Prepaid investments | 9,579 | 57,910 |
Total | $ 36,860 | $ 105,969 |
Long-term Debt (Table) (Details
Long-term Debt (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Less: Deferred financing costs | $ (82,506) | $ (100,550) |
Total debt | 4,328,468 | 4,372,450 |
Less: Current portion | (56,725) | (19,858) |
Long-term portion | 4,271,743 | 4,352,592 |
1.3 billion Senior Secured Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Secured Facility | 1,283,750 | 1,296,750 |
$1.9 billion Secured Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Secured Facility | 1,857,250 | 1,876,250 |
6.5% Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 607,742 | 800,000 |
$462 million Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Secured Facility | 432,821 | 0 |
7.25% Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 229,411 | $ 500,000 |
Long-term Debt - Loan Movements
Long-term Debt - Loan Movements (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 13, 2015 | Jul. 12, 2013 | |
Debt Instrument [Line Items] | |||
December 31, 2014 | $ 4,473,000 | ||
New Loans | 462,000 | ||
Repayments/ Repurchase of senior notes | (524,026) | ||
December 31, 2015 | $ 4,410,974 | ||
Drill Rigs Senior Notes | |||
Debt Instrument [Line Items] | |||
Loan Agreement Date | Sep. 20, 2012 | ||
Original Amount | $ 800,000 | ||
December 31, 2014 | 800,000 | ||
Repayments/ Repurchase of senior notes | (192,258) | ||
December 31, 2015 | $ 607,742 | ||
Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Loan Agreement Date | Jul. 12, 2013 | ||
Original Amount | $ 1,900,000 | $ 1,800,000 | |
December 31, 2014 | 1,876,250 | ||
Repayments/ Repurchase of senior notes | (19,000) | ||
December 31, 2015 | $ 1,857,250 | ||
New Term Loan B Facility | |||
Debt Instrument [Line Items] | |||
Loan Agreement Date | Jul. 25, 2014 | ||
Original Amount | $ 1,300,000 | ||
December 31, 2014 | 1,296,750 | ||
Repayments/ Repurchase of senior notes | (13,000) | ||
December 31, 2015 | $ 1,283,750 | ||
7.25% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Loan Agreement Date | Mar. 26, 2014 | ||
Original Amount | $ 500,000 | ||
December 31, 2014 | 500,000 | ||
Repayments/ Repurchase of senior notes | (270,589) | ||
December 31, 2015 | $ 229,411 | ||
Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Loan Agreement Date | Feb. 13, 2015 | ||
Original Amount | $ 462,000 | $ 475,000 | |
December 31, 2014 | 0 | ||
New Loans | 462,000 | ||
Repayments/ Repurchase of senior notes | (29,179) | ||
December 31, 2015 | $ 432,821 |
Long-term Debt - Principal Paym
Long-term Debt - Principal Payments (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, by Maturity [Abstract] | ||
2,016 | $ 70,905 | |
2,017 | 678,647 | |
2,018 | 70,905 | |
2,019 | 300,317 | |
2020 and thereafter | 3,290,200 | |
Total principal payments | 4,410,974 | $ 4,473,000 |
Less: Financing fees | (82,506) | (100,550) |
Total debt | $ 4,328,468 | $ 4,372,450 |
Long-term Debt - Senior Notes (
Long-term Debt - Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 26, 2014 | May. 13, 2014 | Apr. 27, 2011 | Sep. 20, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Debt | $ 462,000 | $ 2,250,000 | $ 2,800,000 | ||||
Repayment of debt | 61,179 | 1,862,250 | 1,622,250 | ||||
Repayments/ Repurchase of senior notes | $ (524,026) | ||||||
Debt insrument frequency of periodic payment | quarterly basis | ||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 189,174 | 0 | $ 0 | ||||
6.5% Senior Secured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | 800,000 | ||||||
Senior notes interest rate | 6.50% | ||||||
Proceeds from Issuance of Debt | $ 781,965 | ||||||
Repayments/ Repurchase of senior notes | (192,258) | ||||||
Amount outstanding | 607,742 | 800,000 | |||||
Gain (Loss) on Repurchase of Debt Instrument | $ 58,720 | ||||||
6.5% Senior Secured Notes | Redemption price of senior note as a percentage of principal amount | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||
6.5% Senior Secured Notes | From October 1, 2015 to September 30, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 103.25% | ||||||
6.5% Senior Secured Notes | From October 1, 2016 and thereafter | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Senior Secured Credit Facility repaid | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 1,040,000 | ||||||
7.25% Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 500,000 | ||||||
Senior notes interest rate | 7.25% | ||||||
Proceeds from Issuance of Debt | $ 493,625 | ||||||
Repayments/ Repurchase of senior notes | $ (270,589) | ||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||||
Amount outstanding | $ 229,411 | $ 500,000 | |||||
Debt insrument frequency of periodic payment | semi annual | ||||||
Gain (Loss) on Repurchase of Debt Instrument | $ 130,454 | ||||||
9.5% Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount | $ 500,000 | ||||||
Senior notes interest rate | 9.50% | ||||||
Proceeds from Issuance of Debt | $ 487,500 | ||||||
Repayment of debt | $ 462,300 | $ 37,700 | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 105.375% | 104.50% |
Long-term Debt - Term bank loan
Long-term Debt - Term bank loans/ Credit facilities (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Mar. 03, 2015 | Mar. 24, 2014 | Jul. 12, 2013 | Jul. 25, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 13, 2015 | Jul. 26, 2013 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 61,179 | $ 1,862,250 | $ 1,622,250 | |||||||
$1.9 billion Secured Term Loan B Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1,800,000 | $ 1,900,000 | ||||||||
Maturity Date Of Loan | Q3 2020 | |||||||||
$1.9 billion Secured Term Loan B Facility | Tranche B2 term loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 825,000 | |||||||||
Maturity Date Of Loan | Q3 2016 | |||||||||
$1.9 billion Secured Term Loan B Facility | Tranche B1 term loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 975,000 | |||||||||
Maturity Date Of Loan | Q1 2021 | |||||||||
$1.9 billion Secured Term Loan B Facility | Additional Tranche B1 Term Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 100,000 | |||||||||
1.3 billion Senior Secured Term Loan B Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 1,300,000 | |||||||||
Long-term debt bearing with fixed interest | $ 1,300,000 | |||||||||
Maturity Date Of Loan | July 25, 2021 | |||||||||
Write off of Deferred Debt Issuance Cost | 19,797 | |||||||||
Release of restricted cash | 75,000 | |||||||||
1.35 billion Senior Secured Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 1,300,000 | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,350,000 | |||||||||
Amount drawn down | $ 450,000 | $ 900,000 | ||||||||
Existing bank loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 1,519,168 | |||||||||
Term loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Write off of Deferred Debt Issuance Cost | 23,300 | |||||||||
Release of restricted cash | 131,600 | |||||||||
Nordea Finland Plc | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | 800,000 | |||||||||
Deutsche Bank Luxembourg SA facility 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | 495,000 | |||||||||
Deutsche Bank Luxembourg Sa Facility 2 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 495,000 | |||||||||
$462 million Senior Secured Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 462,000 | $ 475,000 | ||||||||
Amount drawn down | $ 462,000 | |||||||||
Restricted cash pledged as security | $ 10,000 | |||||||||
Debt Instrument, Term | 5 years | |||||||||
Variable rate basis | LIBOR | |||||||||
$462 million Senior Secured Credit Facility | Entering into a new agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Days from the termination of contract | 90 days | |||||||||
$462 million Senior Secured Credit Facility | Not entering into a new agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Days from the termination of contract | 180 days |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt [Abstract] | |||
Interest expense | $ 300,543 | $ 304,132 | $ 228,992 |
Capitalized interest | $ 26,055 | $ 37,342 | $ 65,492 |
Weighted average interest rate | 6.30% | 6.40% | 6.40% |
Available amount of loan facility | $ 0 | $ 0 | $ 0 |
Debt Instrument Frequency Of Periodic Payment | quarterly basis |
Financial Instruments and Fai62
Financial Instruments and Fair Value Measurements - Derivatives Not Designated as Hedging Instruments in the Balance Sheet (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Financial Instruments non-current assets | $ 3,494 | $ 10,101 |
Financial Instruments current liabilities | (8,931) | (17,881) |
Financial Instruments-non current liabilities | (2,743) | (8,617) |
On recurring basis | ||
Derivative [Line Items] | ||
Total derivatives | (8,180) | (16,397) |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Financial Instruments current liabilities | (8,931) | (17,881) |
Financial Instruments-non current liabilities | (2,743) | (8,617) |
Interest rate swaps | Not Designated as Hedging Instrument | On recurring basis | ||
Derivative [Line Items] | ||
Financial Instruments non-current assets | $ 3,494 | $ 10,101 |
Financial Instruments and Fai63
Financial Instruments and Fair Value Measurements - Derivatives Not Designated as Hedging Instruments on the Consolidated Statement of Operations (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Gain/ (Loss) on interest rate swaps | $ (11,513) | $ (12,671) | $ 8,616 |
Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Total | (11,513) | (12,671) | 8,616 |
Interest rate swaps | Not Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Gain/ (Loss) on interest rate swaps | $ (11,513) | $ (12,671) | $ 8,616 |
Financial Instruments and Fai64
Financial Instruments and Fair Value Measurements - Measured on a Recurring Basis (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-asset position | $ 3,494 | $ 10,101 |
On recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-liability position | (11,674) | (26,498) |
Total | (8,180) | (16,397) |
On recurring basis | Interest rate swaps | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-asset position | 3,494 | 10,101 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | On recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-asset position | 0 | 0 |
Interest rate swaps-liability position | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | On recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-asset position | 3,494 | 10,101 |
Interest rate swaps-liability position | (11,674) | (26,498) |
Total | (8,180) | (16,397) |
Unobservable Inputs (Level 3) | On recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps-asset position | 0 | 0 |
Interest rate swaps-liability position | 0 | 0 |
Total | $ 0 | $ 0 |
Financial Instruments and Fai65
Financial Instruments and Fair Value Measurements - Measured on a Non recurring basis (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment loss | $ (414,986) | $ 0 | $ 0 |
On a non-recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets | 0 | ||
Total | 0 | ||
On a non-recurring basis | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets | 610,000 | ||
Total | 610,000 | ||
On a non-recurring basis | Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets | 0 | ||
Total | $ 0 |
Financial Instruments and Fai66
Financial Instruments and Fair Value Measurements - Interest Rate Swaps (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2010USD ($) | |
Interest rate swaps and cap floor agreements: | ||||
Reclassification of losses on previously designated cash flow hedges to interest and finance costs | $ 0 | $ 0 | $ 0 | |
Reclassification of realized losses associated with capitalized interest to the Consolidated Statement of Operations (Note 9) | 1,035 | $ 1,034 | $ 1,036 | |
Estimated net amount of existing losses to be reclassified within twelve months | $ (1,035) | |||
Cash flow hedge realized | ||||
Interest rate swaps and cap floor agreements: | ||||
(Unrealized) / realized losses on cash flow hedges accumulated in other comprehensive income | $ 27,776 | |||
Interest Rate Swaps | ||||
Interest rate swaps and cap floor agreements: | ||||
Number of interest rate swap held | 7 | 7 | 9 | |
Notional amount of interest rate swaps | $ 1,600,000 | $ 1,800,000 | $ 2,100,000 |
Financial Instruments and Fai67
Financial Instruments and Fair Value Measurements - Foreign Currency Forward Contracts (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Foreign Currency Derivatives | |||
Number of forward contracts held | 0 | 0 | 0 |
Foreign currency forward contracts | |||
Foreign Currency Derivatives | |||
Gains/(losses) transferred from other comprehensive income to statement of operations | $ (1,035) | $ (1,034) | $ (1,036) |
Financial Instruments and Fai68
Financial Instruments and Fair Value Measurements - Senior Notes and Credit Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Drill Rigs Senior Notes | ||
Senior notes and credit facilities: | ||
Debt instrument - estimated fair value | $ 357,431 | $ 666,000 |
Debt instrument - carrying value, net of financing fees | 601,845 | 788,224 |
$1.9 billion Secured Term Loan B Facility | ||
Senior notes and credit facilities: | ||
Debt instrument - estimated fair value | 427,168 | 0 |
Debt instrument - carrying value, net of financing fees | 1,814,746 | 1,825,671 |
1.3 billion Senior Secured Term Loan B Facility | ||
Senior notes and credit facilities: | ||
Debt instrument - estimated fair value | 628,242 | 0 |
Debt instrument - carrying value, net of financing fees | 1,257,484 | 1,266,341 |
7.25% Senior Unsecured Notes | ||
Senior notes and credit facilities: | ||
Debt instrument - estimated fair value | 100,367 | 380,000 |
Debt instrument - carrying value, net of financing fees | 226,655 | $ 492,214 |
$120.0 million Loan from Affiliate | ||
Senior notes and credit facilities: | ||
Debt instrument - carrying value, net of financing fees | $ 78,306 | |
$462 million Senior Secured Credit Facility | ||
Senior notes and credit facilities: | ||
Debt instrument description | LIBOR |
Financial Instruments and Fai69
Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Carrying amount | $ 6,731,744 | $ 6,830,140 | |
Impairment loss (Note 6) | (414,986) | $ 0 | $ 0 |
Drilling units | |||
Carrying amount | $ 1,024,986 |
Common Stock and Additional P70
Common Stock and Additional Paid-in Capital - Non-Vested Shares (Table) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of non-vested shares | ||
Balance | 612,798 | 239,867 |
Granted | 186,702 | 656,650 |
Forfeited | (63,950) | (78,576) |
Vested | (330,252) | (205,143) |
Balance | 405,298 | 612,798 |
Weighted average grant date fair value per non vested shares | ||
Balance | $ 13.49 | $ 17.15 |
Granted | 6.95 | 13.76 |
Forfeited | 12.29 | 16.93 |
Vested | 13.33 | 17.31 |
Balance | $ 10.8 | $ 13.49 |
Number of vested shares | ||
Balance | 309,452 | 162,633 |
Granted and vested | 52,802 | 111,585 |
Non vested shares granted in prior years and vested 2014 and 2015 respectively | 277,450 | 93,558 |
Granted and vested shares in prior years, but cancelled during 2014 and 2015 respectively | (29,817) | (58,324) |
Balance | 609,887 | 309,452 |
Weighted average grant date fair value per vested shares | ||
Balance | $ 17.22 | $ 16.9 |
Granted and vested | 6.89 | 17.39 |
Non vested shares granted in prior years and vested 2014 and 2015 respectively | 14.56 | 17.2 |
Granted and vested shares in prior years,but cancelled during 2014 and 2015 respectively | 16.59 | 16.63 |
Balance | $ 15.15 | $ 17.22 |
Common Stock and Additional P71
Common Stock and Additional Paid In Capital Dividends-General (Details) - $ / shares | 12 Months Ended | |||||
Dec. 31, 2015 | Jun. 08, 2015 | Dec. 31, 2014 | Apr. 15, 2011 | Dec. 31, 2010 | Dec. 08, 2010 | |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 250,000,000 | 500 | |
Preferred stock shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |||
Common stock par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 20 | |
Installment 1 - FY 2014 | ||||||
Dividends Payable, Date Declared | May 8, 2014 | |||||
Dividend Payable Date To Be Paid Day Month And Year | May 29, 2014 | |||||
Dividends Payable Date Of Record Day Month And Year | May 20, 2014 | |||||
Share price of dividend paid | $ 0.19 | |||||
Installment 2 - FY 2014 | ||||||
Dividends Payable, Date Declared | Jul. 21, 2014 | |||||
Dividend Payable Date To Be Paid Day Month And Year | Aug. 8, 2014 | |||||
Dividends Payable Date Of Record Day Month And Year | Aug. 1, 2014 | |||||
Share price of dividend paid | $ 0.19 | |||||
Installment 3 - FY 2014 | ||||||
Dividends Payable, Date Declared | Oct. 15, 2014 | |||||
Dividend Payable Date To Be Paid Day Month And Year | Nov. 7, 2014 | |||||
Dividends Payable Date Of Record Day Month And Year | Oct. 31, 2014 | |||||
Share price of dividend paid | $ 0.19 | |||||
Installment 4 - FY 2014 | ||||||
Dividends Payable, Date Declared | Feb. 24, 2015 | |||||
Dividend Payable Date To Be Paid Day Month And Year | Mar. 23, 2015 | |||||
Dividends Payable Date Of Record Day Month And Year | Mar. 10, 2015 | |||||
Share price of dividend paid | $ 0.19 | |||||
Installment 1 - FY 2015 | ||||||
Dividends Payable, Date Declared | May 6, 2015 | |||||
Dividend Payable Date To Be Paid Day Month And Year | May 29, 2015 | |||||
Dividends Payable Date Of Record Day Month And Year | May 22, 2015 | |||||
Share price of dividend paid | $ 0.19 |
Common Stock and Additional P72
Common Stock and Additional Paid-in Capital -Dividends - Restricted Stock Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 5 Months Ended | 7 Months Ended | 8 Months Ended | 10 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2014 | Apr. 29, 2015 | Jun. 08, 2015 | May. 16, 2013 | Aug. 05, 2015 | Aug. 19, 2014 | Aug. 20, 2013 | Nov. 04, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 30, 2014 | Dec. 31, 2013 | Jun. 04, 2015 | Nov. 18, 2014 | Mar. 21, 2012 | Dec. 31, 2010 | Dec. 08, 2010 | |
Stock Issued During Period Shares New Issues | 28,571,428 | ||||||||||||||||
Common stock par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 20 | ||||||||||||
Share price | $ 7 | ||||||||||||||||
Net proceeds from common stock issuance | $ 194,134 | $ 192,714 | $ 0 | $ 0 | |||||||||||||
Due From Related Parties Non Current | $ 0 | $ 117,219 | |||||||||||||||
Shares granted | 186,702 | 656,650 | |||||||||||||||
Granted and vested | 52,802 | 111,585 | |||||||||||||||
Number of forfeited shares | 0 | ||||||||||||||||
Shares forfeited due to employees' resignation | 235,576 | ||||||||||||||||
Unrecognized compensation cost | $ 2,299 | $ 6,235 | |||||||||||||||
Amortization of stock based compensation | $ 3,676 | 3,576 | $ 3,634 | ||||||||||||||
Expected period of recognition for unrecognized compensation costs | 2 years | ||||||||||||||||
Shares authorized under Equity Plan | 2,000,000 | ||||||||||||||||
Fair value of shares vested | $ 611 | $ 2,383 | |||||||||||||||
DryShips Inc. | |||||||||||||||||
Due From Related Parties Non Current | $ 120,000 | ||||||||||||||||
DryShips Inc. | Exchange of debt instrument with shares | |||||||||||||||||
Treasury Stock, Shares, Acquired | 22,222,222 | ||||||||||||||||
Due From Related Parties Non Current | $ 120,000 | $ 40,000 | |||||||||||||||
Employees | |||||||||||||||||
Granted and vested | 239,637 | ||||||||||||||||
Employees | Stock Compensation Plan | |||||||||||||||||
Shares granted | 161,200 | 173,200 | 192,400 | 13,502 | 45,450 | ||||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | ||||||||||||
Grant date fair value | $ 17.79 | $ 7.24 | $ 16.9 | $ 3.19 | $ 12.6 | ||||||||||||
Chairman, President and Chief Executive Officer | |||||||||||||||||
Stock Issued During Period Shares New Issues | 1,428,571 | ||||||||||||||||
Common stock value purchased | $ 10,000 | ||||||||||||||||
Consultancy Agreement CEO Services January 2013 | Azara Services S.A. | |||||||||||||||||
Shares granted | 150,000 | 150,000 | 300,000 | ||||||||||||||
Vesting period | 3 years | 2 years | 3 years | ||||||||||||||
Grant date fair value | $ 18.37 | $ 17.56 | $ 9.46 |
Accumulated other Comprehensi73
Accumulated other Comprehensive Loss (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Total | $ (22,841) | $ (23,938) |
Accumulated Other Comprehensive Loss | ||
Cash flow hedges realized loss | (26,187) | (27,222) |
Actuarial pension gain | 3,346 | 3,284 |
Total | $ (22,841) | $ (23,938) |
Interest and Finance Costs (T74
Interest and Finance Costs (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and Finance Costs [Abstract] | |||
Interest costs on long term debt | $ 276,510 | $ 261,137 | $ 190,195 |
Amortization and write off of financing fees | 24,033 | 42,995 | 38,797 |
Discount on receivable from drilling contract | 3,018 | 0 | 0 |
Capitalized borrowing costs | (26,055) | (37,342) | (65,492) |
Commissions, commitment fees and other financial expenses | 2,842 | 33,341 | 57,064 |
Total | $ 280,348 | $ 300,131 | $ 220,564 |
Income Taxes - Income Component
Income Taxes - Income Components (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Domestic income/ (loss) (Marshall Islands) | $ 219,900 | $ (161,913) | $ (66,604) |
Foreign income | 185,742 | 499,539 | 174,518 |
Total income before taxes, excluding impairment loss and gain from repurchases of senior notes | $ 405,642 | $ 337,626 | $ 107,914 |
Income Taxes - Tax Component (T
Income Taxes - Tax Component (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Current Tax expense | $ 99,816 | $ 77,823 | $ 44,591 |
Deferred Tax expense | 0 | 0 | 0 |
Income taxes | $ 99,816 | $ 77,823 | $ 44,591 |
Effective tax rate | 24.60% | 23.10% | 41.30% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of total tax expense (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of total tax expense: | |||
Differences in tax rates | $ 0 | $ 0 | $ 89 |
Adjustments in respect to current income tax of previous years | 0 | 0 | 683 |
Tax rate on interest | 0 | 0 | 742 |
Effect of exchange rate differences | 0 | 0 | 7 |
Income tax | 94,331 | 70,441 | 43,070 |
Taxes on litigation matters subject to statutory rates, including interest and penalties | 5,485 | 7,382 | 0 |
Total | $ 99,816 | $ 77,823 | $ 44,591 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets And Liabilities (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Losses carried forward | $ 13,197 | $ 0 |
Total deferred tax assets | 13,197 | 0 |
Less: valuation allowance | (13,197) | 0 |
Total deferred tax assets, net | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Angola, Brazil, Norway and Congo | |||
Current tax expense percentage | 90.00% | ||
Angola | |||
Current tax expense percentage | 64.00% | ||
Angola, Tanzania, Sierra Leone, Liberia and Gabon | |||
Current tax expense percentage | 72.00% | ||
Marshall Islands | |||
Tax rate | 0.00% | 0.00% | 0.00% |
Earnings per share (Table) (Det
Earnings per share (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings/ (loss) per share : | |||
Net income | $ 80,014 | $ 259,803 | $ 63,323 |
Less: Allocation of undistributed earnings to non-vested stock | (1,175) | (772) | (102) |
Income (numerator) | $ 78,839 | $ 259,031 | $ 63,221 |
Weighted-average number of outstanding shares (denominator) | 138,757,176 | 131,837,227 | 131,727,504 |
Basic and diluted EPS attributable to common stockholders | $ 0.57 | $ 1.96 | $ 0.48 |
Geographic information for of81
Geographic information for offshore drilling operations - Revenue per country (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leasing And Service Revenues | $ 1,748,200 | $ 1,817,077 | $ 1,180,250 |
Norway | |||
Leasing And Service Revenues | 231,189 | 220,044 | 157,740 |
Falklands | |||
Leasing And Service Revenues | 154,606 | 0 | 0 |
Brazil | |||
Leasing And Service Revenues | 581,438 | 581,635 | 353,397 |
Ivory Coast | |||
Leasing And Service Revenues | 33,723 | 97,232 | 86,486 |
Tanzania | |||
Leasing And Service Revenues | 0 | 0 | 72,083 |
Angola | |||
Leasing And Service Revenues | 527,098 | 807,742 | 227,603 |
Gabon / West Africa | |||
Leasing And Service Revenues | 0 | 0 | 81,104 |
Congo | |||
Leasing And Service Revenues | 157,235 | 0 | 0 |
South Africa | |||
Leasing And Service Revenues | 0 | 110,424 | 0 |
Senegal | |||
Leasing And Service Revenues | 52,214 | 0 | 0 |
Liberia | |||
Leasing And Service Revenues | 0 | 0 | 55,601 |
Ireland | |||
Leasing And Service Revenues | 0 | 0 | 104,014 |
Sierra Leone | |||
Leasing And Service Revenues | 0 | 0 | 37,272 |
Other | |||
Leasing And Service Revenues | $ 10,697 | $ 0 | $ 4,950 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations (Table) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,016 | $ 260,279 |
2,017 | 343,337 |
2,018 | 495,800 |
2,019 | 464,000 |
Total | 1,563,416 |
Drilling units building contracts | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
2,016 | 260,279 |
2,017 | 343,337 |
2,018 | 495,800 |
2,019 | 464,000 |
Total | $ 1,563,416 |
Commitments and Contingencies83
Commitments and Contingencies - Legal proceedings (Details) $ in Thousands | 7 Months Ended | 8 Months Ended | 12 Months Ended | |||||
Jul. 31, 2013USD ($) | Aug. 31, 2012USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Nov. 13, 2013USD ($) | Nov. 13, 2013NOK | |
Legal Matters and Contingencies [Line Items] | ||||||||
Legal settlements and other | $ (2,591) | $ (721) | $ 6,000 | |||||
Leiv Eiriksson | ||||||||
Legal Matters and Contingencies [Line Items] | ||||||||
Liability for unpaid amount | $ 8,800 | NOK 77,383,803.58 | ||||||
Drilling units, machinery and equipment | Ocean Rig Mylos | ||||||||
Legal Matters and Contingencies [Line Items] | ||||||||
Proceeds from legal settlements | 39,100 | |||||||
Insurance recoveries | 39,600 | |||||||
Drilling units, machinery and equipment | Ocean Rig Corcovado | Insurance coverage | ||||||||
Legal Matters and Contingencies [Line Items] | ||||||||
Proceeds from legal settlements | $ 24,600 | 20,200 | ||||||
Insurance recoveries | $ 20,200 | $ 24,600 | ||||||
Drilling units, machinery and equipment | Ocean Rig Corcovado | Claim | Capricorn Greenland Exploration 1 Limited and Cairn Energy Plc. | ||||||||
Legal Matters and Contingencies [Line Items] | ||||||||
Proceeds from legal settlements | $ 5,000 | |||||||
Legal settlements and other | (6,000) | |||||||
Previously recoginsed insurance claim | $ 11,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Feb. 11, 2016 | Mar. 07, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 30, 2016USD ($) | |
Subsequent Event [Line Items] | ||||
Gain (Loss) on Repurchase of Debt Instrument | $ 125,000 | |||
Leiv Eiriksson | ||||
Subsequent Event [Line Items] | ||||
Number of wells | 3 | |||
Contract agreement initiation period | Q3 2016 | |||
Future payments receivable | $ 23,600 | |||
TMS Offshore Services Inc. | ||||
Subsequent Event [Line Items] | ||||
Commission on financing related services | 0.20% | |||
Commission on purchase and sale activities | 0.75% | |||
Fees on monies earned under drilling contracts | 1.00% | |||
Contract agreement initiation period | January 1, 2016 | |||
Fixed monthly fee | $ 835 | |||
Ocean Rig Apollo | Minimum | ||||
Subsequent Event [Line Items] | ||||
Termination Fee Rate Of The Monthly Operating Rate Payable | 50.00% | |||
Ocean Rig Apollo | Maximum | ||||
Subsequent Event [Line Items] | ||||
Termination Fee Rate Of The Monthly Operating Rate Payable | 95.00% | |||
7.25% Senior Unsecured Notes | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Repurchase Amount | 98,400 | |||
6.5% Senior Secured Notes | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Repurchase Amount | $ 148,000 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Balance Sheets (Table) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 734,747 | $ 528,933 | $ 605,467 | $ 317,366 |
Other Assets Current | 84,533 | 101,508 | ||
Total current assets | 1,238,102 | 978,192 | ||
NON-CURRENT ASSETS: | ||||
Due from related parties | 0 | 117,219 | ||
Total assets | 8,020,220 | 8,041,621 | ||
CURRENT LIABILITIES: | ||||
Total current liabilities | 401,464 | 417,693 | ||
NON-CURRENT LIABILITIES | ||||
Long term debt, net of current portion | 4,271,743 | 4,352,592 | ||
Total non-current liabilities | 4,343,991 | 4,457,652 | ||
STOCKHOLDERS' EQUITY: | ||||
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and 2015, nil issued and outstanding at December 31, 2014 and 2015, respectively | 0 | 0 | ||
Common stock, $0.01 par value; 1,000,000,000 shares authorized, at December 31, 2014 and 2015, 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and 2015, respectively (Note 10) | 1,609 | 1,320 | ||
Treasury stock ; 0 shares at December 31, 2014 and $0.01 par value; 22,222,222 shares at December 31, 2015 | 222 | 0 | ||
Additional paid-in capital | 3,572,549 | 3,494,957 | ||
Accumulated other comprehensive loss | (22,841) | (23,938) | ||
Accumulated deficit | (276,330) | (306,063) | ||
Total stockholders' equity | 3,274,765 | 3,166,276 | 2,979,843 | 2,908,515 |
Total liabilities and stockholders' equity | 8,020,220 | 8,041,621 | ||
Ocean Rig UDW Inc | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | 35 | 60 | $ 58 | $ 954 |
Other Assets Current | 182 | 2,090 | ||
Total current assets | 217 | 2,150 | ||
NON-CURRENT ASSETS: | ||||
Investments in subsidiaries (Eliminated in consolidation) | 3,781,705 | 3,549,399 | ||
Due from related parties | 0 | 117,219 | ||
Total non-current assets | 3,781,705 | 3,666,618 | ||
Total assets | 3,781,922 | 3,668,768 | ||
CURRENT LIABILITIES: | ||||
Other current liabilities | 9,913 | 10,278 | ||
Total current liabilities | 9,913 | 10,278 | ||
NON-CURRENT LIABILITIES | ||||
Long term debt, net of current portion | 497,244 | 492,214 | ||
Total non-current liabilities | 497,244 | 492,214 | ||
STOCKHOLDERS' EQUITY: | ||||
Preferred stock, $0.01 par value; 500,000,000 shares authorized at December 31, 2014 and 2015, nil issued and outstanding at December 31, 2014 and 2015, respectively | 0 | 0 | ||
Common stock, $0.01 par value; 1,000,000,000 shares authorized, at December 31, 2014 and 2015, 132,017,178 and 160,888,606 issued and outstanding at December 31, 2014 and 2015, respectively (Note 10) | 1,609 | 1,320 | ||
Treasury stock ; 0 shares at December 31, 2014 and $0.01 par value; 22,222,222 shares at December 31, 2015 | (222) | 0 | ||
Additional paid-in capital | 3,572,549 | 3,494,957 | ||
Accumulated other comprehensive loss | (22,841) | (23,938) | ||
Accumulated deficit | (276,330) | (306,063) | ||
Total stockholders' equity | 3,274,765 | 3,166,276 | ||
Total liabilities and stockholders' equity | $ 3,781,922 | $ 3,668,768 |
Schedule I - Condensed Financ86
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Balance Sheets Parentheticals (Details) - $ / shares | Dec. 31, 2015 | Jun. 08, 2015 | Dec. 31, 2014 | Apr. 15, 2011 | Dec. 31, 2010 | Dec. 08, 2010 |
Preferred stock par value | $ 0.01 | $ 0.01 | ||||
Preferred stock shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | |||
Preferred stock shares issued | 0 | 0 | ||||
Preferred stock shares outstanding | 0 | 0 | ||||
Common stock par value | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 20 | |
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | 250,000,000 | 500 | |
Common stock shares issued | 160,888,606 | 132,017,178 | ||||
Common stock shares outstanding | 160,888,606 | 132,017,178 | ||||
Treasury Stock Par Value Per Share | $ 0.01 | $ 0 | ||||
Treasury Stock Shares | 22,222,222 | 0 | ||||
Ocean Rig UDW Inc | ||||||
Preferred stock par value | $ 0.01 | $ 0.01 | ||||
Preferred stock shares authorized | 500,000,000 | 500,000,000 | ||||
Preferred stock shares issued | 0 | 0 | ||||
Preferred stock shares outstanding | 0 | 0 | ||||
Common stock par value | $ 0.01 | $ 0.01 | ||||
Common stock shares authorized | 1,000,000,000 | 1,000,000,000 | ||||
Common stock shares issued | 160,888,606 | 132,017,178 | ||||
Common stock shares outstanding | 160,888,606 | 132,017,178 | ||||
Treasury Stock Par Value Per Share | $ 0.01 | $ 0 | ||||
Treasury Stock Shares | 22,222,222 | 0 |
Schedule I - Condensed Financ87
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Statements of Operations (Table) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
EXPENSES: | |||
General and administrative expenses | $ 100,314 | $ 131,745 | $ 126,868 |
Legal Settlements And Other | (2,591) | (721) | 6,000 |
Operating loss | (285,605) | (633,919) | (306,952) |
OTHER INCOME / (EXPENSES): | |||
Interest and finance costs (Note 12) | (280,348) | (300,131) | (220,564) |
Interest income | 9,811 | 12,227 | 9,595 |
Loss on interest rate swaps | (11,513) | (12,671) | 8,616 |
Other, net | (12,899) | 4,282 | 3,315 |
Total other (expenses), net | (105,775) | (296,293) | (199,038) |
Net income | 80,014 | 259,803 | 63,323 |
Net Income To Common Stockholders | $ 78,839 | $ 259,031 | $ 63,221 |
Earnings per common share, basic and diluted | $ 0.57 | $ 1.96 | $ 0.48 |
Weighted average number of shares, basic and diluted | 138,757,176 | 131,837,227 | 131,727,504 |
Ocean Rig UDW Inc | |||
EXPENSES: | |||
General and administrative expenses | $ 6,924 | $ 7,983 | $ 8,565 |
Operating loss | (6,924) | (7,983) | (8,565) |
OTHER INCOME / (EXPENSES): | |||
Interest and finance costs (Note 12) | (65,988) | (82,109) | (53,193) |
Interest income | 0 | 1,383 | 0 |
Loss on interest rate swaps | 0 | 0 | (149) |
Other, net | 5,041 | 6,224 | 2,358 |
Total other (expenses), net | (60,947) | (74,502) | (50,984) |
Equity in earnings of subsidiaries (eliminated in consolidation) | 147,885 | 342,288 | 122,872 |
Net income | 80,014 | 259,803 | 63,323 |
Net Income To Common Stockholders | $ 78,839 | $ 259,031 | $ 63,221 |
Earnings per common share, basic and diluted | $ 0.57 | $ 1.96 | $ 0.48 |
Weighted average number of shares, basic and diluted | 138,757,176 | 131,837,227 | 131,727,504 |
Schedule I - Condensed Financ88
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Statements of Comprehensive Income/ (loss) (Table) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 80,014 | $ 259,803 | $ 63,323 |
Other Comprehensive income / (loss): | |||
Reclassification of realized losses associated with capitalized interest to Consolidated Statement of Operations | 1,035 | 1,034 | 1,036 |
Actuarial gains/ (losses) | 62 | (1,518) | 3,335 |
Other Comprehensive income / (loss) | 1,097 | (484) | 4,371 |
Total Comprehensive income | 81,111 | 259,319 | 67,694 |
Ocean Rig UDW Inc | |||
Net income | 80,014 | 259,803 | 63,323 |
Other Comprehensive income / (loss): | |||
Reclassification of realized losses associated with capitalized interest to Consolidated Statement of Operations | 1,035 | 1,034 | 1,036 |
Actuarial gains/ (losses) | 62 | (1,518) | 3,335 |
Other Comprehensive income / (loss) | 1,097 | (484) | 4,371 |
Total Comprehensive income | $ 81,111 | $ 259,319 | $ 67,694 |
Schedule I - Condensed Financ89
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Statements of Cash Flows (Table) (Details) - USD ($) $ in Thousands | 5 Months Ended | 12 Months Ended | ||
Jun. 08, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Cash Used in Operating Activities | $ 593,012 | $ 469,817 | $ 333,008 | |
Cash Flows from Investing Activities: | ||||
Loan to former parent | 0 | (120,000) | 0 | |
Proceeds from arrangement fees | 0 | 3,000 | 0 | |
Net Cash Provided by Investing Activities | (643,717) | (814,984) | (1,144,230) | |
Cash Flows from Financing Activities: | ||||
Proceeds from senior notes | 462,000 | 2,250,000 | 2,800,000 | |
Payments of senior notes | (61,179) | (1,862,250) | (1,622,250) | |
Dividends paid | (50,281) | (75,194) | 0 | |
Net proceeds from common stock issuance | $ 194,134 | 192,714 | 0 | 0 |
Payments for issuance of subsidiaries shares | 0 | (466) | 0 | |
Payment of financing fees | (6,314) | (43,457) | (78,427) | |
Net Cash Provided by Financing Activities | 263,267 | 268,633 | 1,099,323 | |
Net increase in cash and cash equivalents | 205,814 | (76,534) | 288,101 | |
Cash and cash equivalents at beginning of year | 528,933 | 528,933 | 605,467 | 317,366 |
Cash and cash equivalents at end of year | 734,747 | 528,933 | 605,467 | |
Ocean Rig UDW Inc | ||||
Net Cash Used in Operating Activities | 237,535 | (88,302) | (62,302) | |
Cash Flows from Investing Activities: | ||||
Investments in subsidiaries | (379,993) | 289,654 | 61,406 | |
Loan to former parent | 0 | 120,000 | 0 | |
Proceeds from arrangement fees | 0 | 3,000 | 0 | |
Net Cash Provided by Investing Activities | (379,993) | 172,654 | 61,406 | |
Cash Flows from Financing Activities: | ||||
Proceeds from senior notes | 0 | 500,000 | 0 | |
Payments of senior notes | 0 | (500,000) | 0 | |
Dividends paid | (50,281) | (75,194) | 0 | |
Net proceeds from common stock issuance | 192,714 | 0 | 0 | |
Payments for issuance of subsidiaries shares | 0 | (466) | 0 | |
Payment of financing fees | 0 | (8,690) | 0 | |
Net Cash Provided by Financing Activities | 142,433 | (84,350) | 0 | |
Net increase in cash and cash equivalents | (25) | 2 | (896) | |
Cash and cash equivalents at beginning of year | $ 60 | 60 | 58 | 954 |
Cash and cash equivalents at end of year | $ 35 | $ 60 | $ 58 |
Schedule I - Condensed Financ90
Schedule I - Condensed Financial Information of Ocean Rig UDW Inc. - Additional Information (Details) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||
Nov. 18, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 13, 2015 | Jul. 12, 2013 | |
Debt Instrument - carrying amount | $ 4,410,974 | $ 4,473,000 | ||||
Dividends paid | 50,281 | 75,194 | $ 0 | |||
Due From Related Parties Non Current | 0 | 117,219 | ||||
$462 million Senior Secured Credit Facility | ||||||
Debt Instrument - carrying amount | 432,821 | 0 | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 462,000 | $ 475,000 | ||||
Debt instrument description | LIBOR | |||||
6.5% Senior Secured Notes | ||||||
Debt Instrument - carrying amount | $ 607,742 | 800,000 | ||||
Debt Instrument, Face Amount | 800,000 | |||||
$1.9 billion Secured Term Loan B Facility | ||||||
Debt Instrument - carrying amount | 1,857,250 | 1,876,250 | ||||
Debt Instrument, Face Amount | 1,900,000 | $ 1,800,000 | ||||
1.3 billion Senior Secured Term Loan B Facility | ||||||
Debt Instrument - carrying amount | 1,283,750 | 1,296,750 | ||||
Debt Instrument, Face Amount | 1,300,000 | |||||
7.25% Senior Unsecured Notes | ||||||
Debt Instrument - carrying amount | 229,411 | 500,000 | ||||
Debt Instrument, Face Amount | 500,000 | |||||
9.5% Senior Unsecured Notes | ||||||
Debt Instrument, Face Amount | 500,000 | |||||
Ocean Rig UDW Inc | ||||||
Dividends paid | 50,281 | 75,194 | $ 0 | |||
Due From Related Parties Non Current | 0 | $ 117,219 | ||||
Ocean Rig UDW Inc | $462 million Senior Secured Credit Facility | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 462,000 | |||||
Ocean Rig UDW Inc | 6.5% Senior Secured Notes | ||||||
Debt Instrument - carrying amount | 607,742 | |||||
Ocean Rig UDW Inc | $1.9 billion Secured Term Loan B Facility | ||||||
Debt Instrument, Face Amount | 1,900,000 | |||||
Ocean Rig UDW Inc | Three facilities | ||||||
Debt Instrument - carrying amount | 3,573,821 | |||||
Ocean Rig UDW Inc | 1.3 billion Senior Secured Term Loan B Facility | ||||||
Debt Instrument, Face Amount | 1,300,000 | |||||
Ocean Rig UDW Inc | 7.25% Senior Unsecured Notes | ||||||
Debt Instrument, Face Amount | 500,000 | |||||
Ocean Rig UDW Inc | 9.5% Senior Unsecured Notes | ||||||
Debt Instrument, Face Amount | $ 500,000 | |||||
Ocean Rig UDW Inc | $120.0 million Loan from Affiliate | ||||||
Debt instrument description | LIBOR | |||||
Due From Related Parties Non Current | $ 120,000 | |||||
Ocean Rig UDW Inc | Dryships Inc. | Exchange of debt instrument with shares | ||||||
Treasury Stock, Shares, Acquired | 22,222,222 |