NewLead adds five more tankers

NewLead Holdings has expanded its fleet to 10 vessels over the last twelve months in an effort to capitalise on opportunities in the shipping market
NewLead adds five more tankers

NewLead holdings has announced it is adding five more bitumen tankers to its fleet. 

In total, the company has expanded its fleet to 10 vessels over the last year as part of an effort to capitalise on opportunities that have been arising within the maritime industry. 

Three bitumen tankers, the Captain Nikolas I, the Nepheli and the Sofia, were purchased for $21 million and will be paid for through a combination of equity and debt financing. The other two tankers, the Ioli and the Katerina L, were bought following two separate bareboat/leasing agreements. 

NewLead has the option to purchase the latter two vessels at any time during the lease contracts for an aggregate purchase price of approximately $6.05 million. The company will make a payment of around $4.23 million for the Ioli and the Katerina L when they are delivered. 

The gross earnings from the employment of all five vessels is expected to be $12.65 million per year. All five vessels will generate an aggregate of approximately $5.61 million of EBITDA per year. 

Chairman and CEO of NewLead, Michael Zolotas said: “NewLead continues to deliver on its commitments to create value for its shareholders and grow its fleet while improving the age profile as well as their tradability, increasing the cash flow as well as the revenues of the company. Today, NewLead’s average fleet age is 7.39 years compared to 17.84 years at the beginning of 2014. 

“NewLead invested in young, high quality sophisticated bitumen tanker vessels to capture opportunities in emerging economies and niche markets with relatively low competition. NewLead's long term relationships with oil majors and fuel oil companies will allow responsiveness to market opportunities as well as support its commitment to continue to grow its fleet."
 

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by Laura Stackhouse

readmt.com Editor

Laura Stackhouse is the Web Editor of readmt.com, an official publication of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to readmt.com please get in touch.

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