DryShips has confirmed its entry into the VLGC market with a $83.5m acquisition from TMS Cardiff Gas.
The George Economou-led company said it has exercised its first option to acquire a ship currently under construction at Hyundai Heavy Industries (HHI).
It comes less than a week after Dryships outlined its intention to spend cash from a recent deal with Kalani Investments to buy VLGCs owned privately by the Economou family.
George Economou, chairman and chief executive of DryShips, said: “We are very pleased to have declared our first option to purchase a high-specification VLGC with long-term employment to an oil major at above market rates.
“This acquisition allows us to deploy the company’s available liquidity immediately and will be highly accretive to earnings and cash flow.
“This marks the first acquisition of the company since the restructuring of its balance sheet and our first investment in the gas carrier segment, which we believe has very positive long-term fundamentals.”
The unnamed oil major has hired the vessel at a fixed rate for five years firm, with extension options for up to three years.
Dryships said the firm period of the charter is worth $54m, which increases to $92.7m including the option.
The delivery of the vessel will take place in June 2017.
DryShips has “zero cost” options for three more ships, ordered by George Economou-controlled TMS Cardiff Gas.
