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Hamilton, Bermuda - June 23, 2016
NewLead Holdings Ltd. (OTC: NEWLF) ("NewLead" or the "Company") announced today that the charterer of MT Newlead Granadino (the "Newlead Granadino" or the "Vessel") has exercised its second option to extend the existing contract for an additional six months. The second extension is expected to commence at the end of July 2016. Thereafter, the charterer has the option to extend the existing contract for an additional six month period.
The Newlead Granadino is a 2009-built bitumen tanker vessel of 5,887 dwt and is one of the five bitumen tanker vessels that were delivered to NewLead's fleet in 2014.
As previously announced, on September 15, 2015, NewLead had entered into a time charter contract for the Newlead Granadino for a minimum of six months with the charterer's option to extend the contract at the end of the first six months for additional six month periods up to a maximum of eighteen months.
The Newlead Granadino is currently trading in North America and the Caribbean. The Vessel has all oil major approvals required to trade among the major refineries in these trading areas. The Newlead Granadino has transported 456,128 and 424,098 barrels of bitumen in 2014 and 2015, respectively.
NewLead's bitumen fleet utilization for 2015 was 92.7% and the operating revenue from bitumen tanker vessels was approximately $15.7 million for the year ended December 31, 2015 compared to approximately $1.35 million for the year ended December 31, 2014. The utilization of the Newlead Granadino was 100% and 92.7% in 2014 and 2015, respectively.
Mr. Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "The second extension of the current contract of Newlead Granadino reflects the satisfaction of the charterer by the operational performance of the Vessel amongst some of the most demanding trade routes and petroleum refineries of the world, as well as by NewLead's competitive and efficient management of its bitumen tanker vessels."
Mr. Zolotas, added, "NewLead's strategy to become a leading bitumen marine transportation company is supported by the charterer's presented confidence in the commercial, operational and technical management of the Company."
Mr. Zolotas, concluded: "We will continue to invest in the bitumen tanker sector both through maintaining our bitumen tanker vessels in the topmost operational condition, as well as through our intention to add new bitumen tanker vessels to our fleet soon. We are currently exploring joint venture opportunities with major oil refineries and traders in order to be able to develop further in the bitumen tanker sector."
The 2009-built double hull bitumen tanker vessel of 5,887 dwt "Newlead Granadino". Image by NewLead Holdings Ltd.
The 2009-built double hull bitumen tanker vessel of 5,887 dwt, "Newlead Granadino". Image by NewLead Holdings Ltd.
About NewLead Holdings Ltd.
NewLead Holdings Ltd. is an international vertically integrated shipping company providing ideal solutions for seaborne transportation of dry bulk commodities and petroleum products through owned and managed vessels. NewLead controls a fleet of nine vessels, including four dry bulk and five bitumen tanker vessels. 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 "NEWLF" on the OTC Pink marketplace. To learn more about NewLead Holdings Ltd., please visit NewLead's website at www.newleadholdings.com.
NewLead Holdings Ltd. press release