DryShips rides record dry bulk rates
Dry bulk shipping records continued their rise into record territory Monday, with the closely followed Baltic Dry Index rising 250 points to 11,709.
That's resulting in large profits for shipping companies specializing in the sector such as the Athens-based shipowner DryShips Inc., whose shares are traded in the United States on the Nasdaq system.
DryShips reported first quarter profit of $176.3 million compared to $67.8 million in the same 2007 period. Included in the first quarter results is a capital gain on the sale of one vessel for $24.4 million.
First quarter revenue for the company was $232 million compared to $86.7 million in the same 2007 period.
George Economou, chairman and chief executive officer of DryShips said, 'We remain confident in the positive fundamentals of the dry bulk market. We have continued with our fleet renewal and expansion strategy aimed to replace older tonnage with younger and larger vessels, thereby expanding and enhancing the quality of earnings of our fleet for the longer term.
'Based on the sales and purchase activity we have concluded to date, by the end of the year our fleet will include 47 vessels, including seven newbuildings, with an average age of seven years, considerably lower than the industry average of 13 years. With our modern, large and versatile fleet, we believe we are strategically positioned to continue taking advantage of the strong freight rate environment,' he said.