Published On: Wed, Jun 29th, 2016

NewLead Holdings Ltd (OTCMKTS:NEWLF)’s MT Newlead Granadino Gets Contract Renewed For Another 6-months

NewLead Holdings Ltd (OTCMKTS:NEWLF) has announced that one of its vessels, the charterer of MT Newlead Granadino, has extended the vessel’s current contract, for another six months. It should be noted here that this is the second time that the contractor has decided to do so and would be allowed to exercise another six month extension in the future. The extension period is due to begin by the end of July 2016.

The Granadino is a bitumen tanker vessel, built in 2009 and has been a part of NewLead’s fleet since 2014. The current contractor had obtained the vessel in September 2015, under a time charter contract of six months. However, the contractor was given the option to exercise an extension of up to 18-months, in phases of 6-months.

Currently, NewLead is utilizing its bitumen fleet, up to 92.7%, as per the figures from 2015. As such, by the full year ended December 31, 2015, the company had obtained $15.7 million as revenues from the fleet. The CEO of NEWLF, Michael Zolotas, stated that the renewal of the vessel’s contract reflects that the contractor is fully satisfied with the performance of Granadino. He also claimed that the vessel’s trade route is one of the most demanding ones. The CEO further added that the company’s success is dependent upon the satisfaction of the charterer’s confidence in the company. Mr. Zolotas was also of the view that the company needs to maintain the condition of its current vessels, while also adding new vessels to the fleet, in the near future.

For its FY ended December 31, 2015, the company had total revenues of $27.8 million, with a gross profit of $8.62 million. However, despite NewLead’s efforts to curb its operating expenses, the company was unable to report a profit. NEWLF had a net loss of $97.14 million for its FY2015, as compared to $100.22 million for the FY2014.

NewLead Holdings Ltd (OTCMKTS:NEWLF) closed at a share price of $0.00137, after losing 23.89% of its share value and having a trade volume of 28.51 million, during the June 28 trading session.

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