Full Description

DryShips Inc., incorporated in September 2004, owns, through its subsidiaries, a fleet of 40 drybulk carriers comprised of seven Capesize, 29 Panamax, two Supramax, and two newbuilding drybulk vessels, as well as two ultra-deep-water semi-submersible drilling rigs and two ultra-deep-water newbuilding drillships. The Company’s drybulk fleet carries a variety of drybulk commodities including coal, iron ore, and grains, bauxite, phosphate, fertilizers and steel products. DryShips Inc. employs its drybulk vessels under period time charters, on bareboat charters, in the spot charter market and in drybulk carrier pools. Its subsidiaries include Ocean Rig ASA, DrillShips Investment Inc. and Primelead Shareholders Inc.

The Company employs its drybulk vessels under period time charters, on bareboat charters, in the spot charter market and in drybulk carrier pools. Twenty of its vessels are employed on time charter and three on bareboat charters. One of its Panamax drybulk carriers is operated in a Panamax drybulk carrier pool. Pools combine spot market voyages, time charters and contracts of affreightment with freight forward agreements for hedging purposes and to perform vessel scheduling. The Company’s drybulk carriers are managed by Cardiff Marine Inc. (Cardiff). Cardiff provides ship management services including technical supervision, such as repairs, maintenance and inspections, safety and quality, crewing and training, as well as supply provisioning.

The Company owns and operates two ultra-deep water, harsh environment, semi-submersible drilling rigs, the Leiv Eiriksson and the Eirik Raude. In April 2008, the Company, through its subsidiary, DrillShips Investment Inc., acquired two newbuilding drillships for use in ultra-deep water locations, identified as Hull 1865 and Hull 1866. In addition, the Company, through its subsidiary, Primelead Shareholders Inc., entered into contracts for construction of two newbuilding ultra-deep water drillships, identified as Hulls 1837 and 1838.

During the year ended December 31, 2008, the Company’s fleet comprised of Capesize, Panama and Supramax. Its rigs, Leiv Eiriksson had a contract with Shell U.K Limited, A/S Norske Shell and Shell E&P Ireland for a two-year term and Eirik Raude, had a contract with Tullow Oil PLC for a three-year term. The Company deploys its drybulk fleet between long-term and short-term (spot market) time charters.