It might be a while before global trade picks up again. DryShips is plunging this morning, after the shipper announced that it would suspend its dividend, cut back on ship purchases, and post weaker-than-expecte profits in the quarter. Excluding items (which are huge), the company will earn $.63-$.71 per share, which is about half of what analysts were expecting.
Meanwhile, in order to preserve liquidity, the company is conducting business in DryShips shares, which means dilution:
We have worked diligently to find innovative solutions to dramatically reduce our capital expenditures and do so while minimising the use of cash. In each transaction, counterparts are willing to take either some or all of their consideration in the form of DryShips equity securities. We believe these transactions enhance shareholder value, as the value recaptured from the cancelled transactions is dramatically higher than the consideration to be delivered by us for the cancellation. We believe the transactions will allow us to strengthen our balance sheet and help us capture future opportunities
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