DryShips pays hefty cancellation penalty

DryShips Inc. (NasdaqGS:DRYS) is to pay a total $42.8 million in penalties to cancel the previously announced acquisition of a 180,000 dwt Capesize newbuilding, Hull 2089, currently under construction in South Korea, for a contract price of $114 million. The cancellation penalty includes the initial deposit of 20%.

DryShips says the cancellation will further reduce its 2009 capital expenditures by $71.2 million.

George Economou, Chairman and CEO commented: "This cancellation reaffirms the company's strategy to cut down our CAPEX requirements. This cancellation is consistent with our continued position to evaluate all of our funding options which includes potential further capex reductions, fleet additions, equity issuances and debt placements."