Greek bulk carrier Dryships Inc (DRYS.O) said it would suspend its dividend, cancel previous ship orders and sell some ships as it strives to preserve capital, sending its shares down as much as 20 percent.
The company also forecast fourth-quarter earnings before special items to be below market estimates citing weakness in the drybulk market and charges associated with the actions announced today.
Dryships said lower freight rates and a tighter credit market was forcing it to take the actions which are aimed at reducing capital expenditures by over $1.5 billion.
The Baltic Exchange's chief sea freight index .BADI, which monitors prices to ship key dry commodities, has fallen more than 90 percent from the highs it touched in May 2008.
Shares of the company, which have lost 88 percent of their value from the highs touched in May, were down more than 17 percent at $11.98 in afternoon trade on Nasdaq. They had earlier touched a low of $11.70....MORE
An analyst, Jeffries & Co.'s Douglas Mavrinac, sees positives for DRYS from the cash conservation but the bigger picture? Yikes.