Tuesday, December 28, 2010

DryShips (NASDAQ:DRYS) EPS Estimates Changed on Tanker Business Entry

News that DryShips (NASDAQ:DRYS) has entered the crude tanker shipping market has Jefferies and others changing their EPS estimates on the company.

Dryships announced they're acquiring twelve ships built from scratch, with six of them being Aframaxes and six being Suesmaxes.

The ships are expected to be delivered from 2011 to 2013, costing the company $770 million. They've paid $120 million of that at this time.

Not too long ago Dryships sold off about 22 percent of their interest in Ocean Rig, helping to offset the acquisition.

They are either going to IPO their tanker assets in 2011 or spin them off.

Jefferies raised their full year 2010 EPS estimate on Dryships by $0.01 to $1.08, and have changed their full year 2011 EPS/EBITDA estimates from $1.02/$755.8 to $0.94/$767.8.

Jefferies maintains their "Hold" rating on DryShips, which was trading at $5.54, down $0.01, or 0.18 percent, as of 11:23 AM EST.

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