Energy
DryShips New Oil Pacts Add to Revenue Projections (DRYS, PBR)
Published:
Last Updated:
DryShips Inc. (NASDAQ: DRYS) is seeing a rise this morning on two separate announcements regarding contracts for its offshore drilling contract initiatives. The drybulk and off-shore contract drilling services outfit announced that its Ocean Rig UDW Inc. subsidiary has entered into firm contracts with Cairn Energy PLC for the “Leiv Eiriksson” and the “Ocean Rig Corcovado” for a period of approximately 6 months each. A second announcement showed that its 3rd drillship new-building Ocean Rig Poseidon is involved as the Leiv Eiriksson will be released early from the existing contract and will be made available in Q2 2011.
The total contract value including mobilization for the “Leiv Eiriksson” is approximately $95 million and the mobilization period will start in direct continuation from the agreed release date from Petrobras (NYSE: PBR).
The total contract value including mobilization and winterization of the “Ocean Rig Corcovado” is approximately $142 million.
The firm contract period for the Ocean Rig Poseidon is for about 600 days plus a mobilization period, with a total contract value of $353 million with Petrobras Tanzania.
As far as how these contracts translate overall, the Thomson Reuters estimates for revenues are $853.86 million for fiscal 2010 and $1.17 billion for fiscal 2011.
DryShips is up almost 4% at $5.39 in active pre-market trading.
You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
