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CARBON TAX ON BUNKER FUEL
IMO is looking at a global levy (tax) on marine fuels. Do you think this is

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a really bad idea

Marine Log

July 3, 2008

DryShips sells three and buys four ... from Economou

DryShips Inc. (NasdaqGS:DRYS) has entered into agreements to sell three older Panamax vessels and to acquire four modern vessels for $400 million en bloc from companies beneficially owned by its Chairman and CEO, George Economou, on "terms that the company believes are comparable to those that may be obtained from an independent third party."

The acquisitions are:

A 75,228 dwt Panamax vessel built in 2008 and expected to be delivered within 2008. The company has entered into an agreement to time charter the vessel for a period of approximately four years with an unrelated first class charterer at a daily rate of US$ 43,750 per day. The time charter is expected to commence concurrently with the vessel's delivery.

A 75,204 dwt Panamax vessel built in 2007 and expected to be delivered within 2008. Again, the company has entered into an agreement to time charter the vessel for a period of approximately four years with an unrelated first class charterer at a daily rate of US$ 43,750 per day. The time charter is expected to commence concurrently with the vessel's delivery.

A 75,000 dwt Panamax vessel under construction in China scheduled to be delivered during the fourth quarter of 2008.

A 75,000 dwt Panamax vessel under construction in China scheduled to be delivered during the first quarter of 2009.

The disposals are:

The Panamax vessel MV Primera 72,495 dwt built in 1998 for US$ 75 million. Delivery to the new owners is expected to take place during the fourth quarter of 2008. Once the sale is concluded, the company expects to realize a gain of approximately US$ 40 million.

The Panamax vessel MV Paragon 71,259 dwt built in 1995 for US$ 61 million. Delivery to the new owners is expected to take place during the first quarter of 2009. Once the sale is concluded, the company expects to realize a gain of approximately US$ 31 million.

The Panamax vessel MV Menorca 71,662 dwt built in 1997 for US$ 77 million. Delivery to the new owners took place in June, 2008. The company realized a gain of approximately US$ 37 million.

Mr. Economou commented that the acquisitions and disposals are "in line with our stated strategy of continued fleet renewal and expansion. The transactions reiterate our positive outlook on the fundamentals of the drybulk industry and reinforce our position of taking advantage of the strong freight environment with our large, versatile and modern fleet."


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