George Economou (shipbuilder)

George Economou
Born	1953 Athens, Greece
Occupation(s)	Shipowner, CEO
Known for	CEO of DryShips Inc and Ocean Rig; proprietor of Cardiff Marine

George Economou (also known as Georgios Ekonomou; Greek: Γεώργιος Οικονόμου; born 1953) is a Greek billionaire and prominent shipowner. He serves as the CEO of both DryShips Inc and Ocean Rig, and is the proprietor of Cardiff Marine, overseeing fleets of oil tankers and dry bulk carriers through the latter. In 2022, Forbes placed him at number 707 on their billionaire rankings, while Lloyd's List recognized him as the 34th most influential figure in the shipping sector.

Early life

Economou was born in Athens into a family that operated a modest paper-products business. He pursued advanced education at the Massachusetts Institute of Technology (MIT), obtaining MSc degrees specializing in naval architecture, marine engineering, shipping, and shipbuilding management.

Career

DryShips (ticker: DRYS) became publicly traded on the Nasdaq stock exchange in 2005. Meanwhile, Cardiff Marine remains under Economou’s private ownership. Holding approximately 34% of DryShips shares, Economou has faced scrutiny for managing the company akin to a private enterprise. Critics argue that his approach prioritizes personal financial gain over shareholder interests through share dilution and intricate financing arrangements. There have been reports of investigations concerning potential misstatements submitted to the SEC.

Although Greece offers favorable tax conditions for shipping—exempting foreign-earned income repatriated into the country—investors have raised concerns about Economou’s practice of personally acquiring assets before transferring them to his public companies at a profit. This strategy is seen as shifting operational risks and dilution effects onto public shareholders. Lloyd’s List has highlighted his unconventional standing within maritime circles.

From 2008 onward, Economou reportedly engaged in affiliate transactions moving assets from his private firms to DryShips, sparking apprehension about diminishing shareholder value.

By March 2015, his net worth was estimated at $1.5 billion, with control over a fleet comprising 116 vessels.

In November 2016, DryShips obtained $100 million in financing from Kalani, a company registered in offshore jurisdictions with undisclosed ownership structures. A refinancing deal in December 2016 expanded this credit facility to $200 million and included a payment of $33.5 million directed to Economou personally. Kalani later extended an additional refinancing package worth $200 million.

DryShips disclosed options to acquire four very large gas carriers (VLGCs) from entities associated with Economou for up to $334 million. This transaction fueled speculation regarding his influence over Kalani and raised questions about strategic asset transfers potentially unfavorable to shareholders.

Between 2016 and 2017, Economou implemented several reverse stock splits totaling a ratio of 12,000:1 to reduce outstanding shares to one million. Subsequently, he issued approximately 60 million new shares enabling affiliate transactions that sold VLGCs from his private holdings at premium valuations. Another reverse split with an 8:1 ratio took place in 2017.

Art collector

Since 2006, Economou has devoted significant attention to assembling a collection of artworks by early twentieth-century European artists such as George Grosz, Pablo Picasso, Christian Schad, Werner Schramm, Andy Warhol, Diego Rivera, Fernando Botero, Hermann Scherer, and Heinrich Hoerle.

Personal life

Two of Economou’s former spouses collectively own a 15% stake in DryShips. His sister, Chryssoula Kandylidis, holds a 30% interest in Cardiff Marine. Additionally, his nephew Antonios Kandylidis founded OceanFreight, which became publicly listed on Nasdaq in 2007.