|
Hamilton, Bermuda - Sept. 1, 2015 - PRNewswire
NewLead Holdings Ltd. (OTC: NEWL) ("NewLead" or the "Company") announced today a review of the commercial performance of one of its bitumen tanker vessels, the MT Nepheli ("Nepheli") since the vessel was delivered to NewLead's fleet.
The Nepheli is a 2009-built bitumen tanker vessel of 3,416 dwt and is one of the five bitumen tanker vessels that were delivered to NewLead's fleet in the fourth quarter of 2014.
When NewLead took delivery of the Nepheli in November 2014, the vessel was already chartered-out on a time charter agreement for one year at a net rate of US $6,700 per day. The time charter contract was concluded at the end of July 2015 and from delivery of the vessel to NewLead until such time, 82,473.76 tons of asphalt were transported. Following the conclusion in July 2015, NewLead entered into a new time charter contract, in direct continuation of the prior contract, for a one year period at a gross rate of US $7,400 per day less 3.75% commission payable to third parties. The Nepheli will be principally trading in the Middle East area.
Upon delivery of the Nepheli to NewLead in November 2014, the Company invested in the maintenance, improvement and upgrade of the vessel's condition. The vessel's improved technical condition allowed for an increase of approximately 5% in the vessel's cargo in-take capacity and a decrease in the fuel consumption for steaming and cargo heating, as well as an improvement of the speed and consumption of the vessel.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "NewLead's investment in the improvement of the condition of the Nepheli enhanced the commercial performance and tradability of the vessel. Together with the oil major vettings, the Nepheli has been attracting reputable charterers' attention. Our decision to invest in the technical improvement of the vessel upon her delivery to NewLead is expected to enhance the cash flow of NewLead."
Mr. Zolotas added, "The enhanced performance of the Nepheli in the time charter contract upon the delivery of the vessel to NewLead resulted in the renewal of the charter party agreement with improved terms. We will continue to capitalize on the commercial and technical expertise of NewLead which are fundamental in the bitumen market while aiming to expand the Company's fleet with modern bitumen vessels. "
NewLead has approximately 50% and 74.75% of its operating days covered for 2015 and 20% and 16.27% of its operating days covered for 2016 for its dry bulk and tanker vessels, respectively.
The 2009-built bitumen tanker vessel of 3,416 dwt "Nepheli". Image by NewLead Holdings Ltd.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international vertically integrated shipping, logistics and commodity company providing ideal solutions for seaborne transportation of dry bulk commodities and petroleum products through owned and managed vessels. NewLead controls a fleet of ten vessels, including five dry bulk and five tanker vessels and manages one third party tanker vessel. NewLead is a Securities and Exchange Commission ("SEC") reporting Foreign Private Issuer in compliance with applicable SEC rules and regulations and current in its SEC reporting, utilizing U.S. Generally Accepted Accounting Principles' financial reporting standards. NewLead's common shares are traded under the symbol "NEWL" on the Over-the-Counter market. To learn more about NewLead Holdings Ltd., please visit NewLead's renewed website at www.newleadholdings.com.
NewLead Holdings Ltd. press release