Boston, MA 01/06/2013 (wallstreetpr) – USA-based marine transportation firm DryShips Inc. (NASDAQ:DRYS) is considering resuming its common equity fundraising plans with a bid to raise about $200 million in market capital. The diversified marine transporter with established worldwide presence intends to meet as much as possible its current capital funding needs, estimated at around $150 million through the fiscal 2014. Presumably due to a very low stock price prevailing at the time, DryShips had suspended on December 5 its earlier planned equity offering.
Although economic conditions in the U.S. have been showing signs of revival, the shipping industry, especially the drybulk shipping segment is yet to emerge from the slowdown caused the 2008 recession. With no clear forecasts of the impending recession that affected the world in 2008, most shipping firms including DryShips Inc. (NASDAQ:DRYS) went ahead with plans to expand their transportation fleet, triggering intense and cut-throat pricing competition which only resulted in eroding profit margins.
DryShips Inc. (NASDAQ:DRYS)’s recently disclosed earnings report for its third quarter 2013 haven’t been impressive either, with the firm declaring a net loss of about $63.9 million, which amounts to a loss-making $0.17 a share, considered on a diluted basis. With a major chunk of DryShips’s shipping contracts currently under volatile spot rate market, the company is in dire need of capital for running its operations. With drybulk shipping rates and ship values showing some respite recently and lifting up in the last month, the leading provider of marine transportation services for drybulk and petroleum cargo anticipates that the trend is here to stay and beneficial to shipping firm like itself with a huge asset worth.
DryShips Inc. (NASDAQ:DRYS) shares have shown good growth over the past two months, rising over 40%. Shares were trading at $4.27 at the close of their January 3 trading on NASDAQ, down from the previous $4.31, with after-hours trading figures hovering around the closing.
