NewLead Holdings Ltd. Corporate · PDF file... trading companies and oil ... Aspahlt/Bitumen...

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Transcript of NewLead Holdings Ltd. Corporate · PDF file... trading companies and oil ... Aspahlt/Bitumen...

  • Corporate Presentation NewLead Holdings Ltd.

    June 1, 2015

    LD Micro Conference

  • Monday, June 1, 2015 1

    Forward Looking Statement

    Forward Looking Statement

    This presentation includes assumptions, expectations, projections, intentions and beliefs about

    future events. These statements, as well as words such as "anticipated," "estimated," "projected,"

    "plan," and "expect," are intended to be ''forward-looking statements (as such term is definedin Section 21E of the Securities Exchange Act of 1934, as amended).

    We caution that assumptions, expectations, projections, intentions and beliefs about future

    events may vary from actual results and the differences can be material. Such forward lookingstatements in this presentation are based on assumptions and expectations deemed reasonable

    by NewLead, as well as information available to NewLead, at the time this presentation was

    made. Although NewLead believes its assumptions are reasonable for its projections, it can give

    no assurance that such projections will be attained.

    The Company undertakes no obligation to update any forward-looking statements even if it

    obtains new information or becomes aware of future events, unless it is required to do so under

    the securities laws. The Company makes no prediction or statement about the performance of its

    common stock.

  • Monday, June 1, 2015 2

    Engine Control Room: the heart of a ship The heart of shipping beats at a vessels engine room

    20 ships you didnt realize you used todayeveryday dry bulk commodities are brought to you by bulk carriers(Intercargo, the International Association of Dry Cargo Shipowners)

    Dry Bulk Shipping: Will It Ever Recover?(Morgan Stanley, Maritime Industries April 2015)

    On 18 February, the BDI - Baltic Dry Index - hit an all-time low of 509(BIMCO, the worlds largest international shipping association)

    Anaemic demand growth is here to stay,

    especially as the trade development in coal

    and iron ore into China is expected to

    decline further(Drewry, May 2015)

    The Tanker Market Is Sending a Big Warning to Oil Bulls(Bloomberg.com, May 27, 2014)

    China asphalt demand growing 5% per annum

    Russia's bitumen demand growing at 10% per annum, to reach 9 - 10 million tons by 2015(Petrosil.com)

    The global market for bitumen is expected to reach USD 95.77 billion by 2020(Grand View Research, Inc)

    Shipping Always and Today

  • Monday, June 1, 2015 3

    Overview

    International, vertically integrated shipping and coal processing company

    Ideal solutions for worldwide transportation of dry bulk commodities and petroleum products

    Diversified fleet of dry bulk and tanker vessels

    Owned and third party managed vessels

    Securities and Exchange Commission (SEC) reporting

    In compliance and current with all applicable SEC rules and regulations and reporting requirements

  • Monday, June 1, 2015 4

    Profile

    2014 - A Transformational Year for the CompanyDelivery of three Eco-type Handysize dry bulk carriers and five Asphalt/Bitumen Oil tankers

    Fleet of ten vessels and one third party managed vessel

    Average fleet age of 9.2 years for the dry bulk and 6.2 years for the asphalt/bitumen oil tankers

    Entry in a niche oil market with upside from growing demand in oil and bitumen

    Prudent Commercial Management Experienced in-house chartering department capable to capitalize on responses to market conditions

    Balanced employment strategy among long term period charters, spot employment and COAs

    Capitalization of strong commercial relationships with charterers, trading companies and oil majors

    Knowledgeable S&P in-house department with access to numerous shipyards and respectable S&P brokers

    Fleet utilization as of December 31, 2014 of 92.4%

    Competent Operating PlatformIn-house commercial, operational and technical ship management

    Dedicated operations sustaining efficient fleet performance

    Skilled technical department maintaining vigorous safety and quality control standards

    Competitive OpEx per vessel per day due to integrated ship management services

    Enhanced Transparency Independent Board of Directors with solid shipping expertise

    Corporate Governance structure to ensure commitment to conduct all affairs with trust and integrity

    Code of Business Conduct and Ethics implemented by the Board of Directors

    Corporate Governance practices routinely reviewed and modified to meet current best practices

  • Monday, June 1, 2015 5

    Facts and Figures

    Blend of vessels is NewLeads competitive advantage

    Revenue mix allows mitigation of charter rate fluctuations; stable cash flow during shipping cycles

    5

    5

    1

    NUMBER OF VESSELS

    Dry bulk vessels

    Aspahlt/Bitumen Oil tanker vessels

    Third party managed Oil tanker vessel

    AVERAGE FLEET AGE (as of end of May 2015)

    DRY BULK CARRIERS 9.2 YEARS

    ASPHALT/BITUMEN OIL TANKERS 6.2 YEARS

    3

    5

    2

    FLEET EMPLOYMENT PROFILE

    Time Charter

    Spot Charter

    Contract of Affreightment

    KEY FIGURES

    TOTAL FLEET UTILISATION Q1 2015 90.75%

    DRY FLEET UTILIZATION Q1 2015 97.81%

    WET FLEET UTILIZATION Q1 2015 98.69%

    CONTRACTED AVAILABLE DAYS

    2015 42%

    Accretive fleet growth strategy to expand fleet

    Continuous market monitoring and evaluation

    Responsive chartering strategy to market assessment

    Maintenance of vessel condition to superior standards

    Reduced OpEx while preserving high quality standards

    Fleet: Growth - Optimization - Diversification - Balance

  • Monday, June 1, 2015 6

    Commercial, Technical and Operational Management

    In-house ship management companies

    Newlead Bulkers S.A.: Dry bulk Carriers

    In-house ship management companies; commercial and quality competence

    Investment in the welfare of onshore and offshore personnel; NewLeads most valuable asset

    Personnel with years of experience in shipping; 55 employees ashore in our offices and 245 crew members

    Operational flexibility; quality in every single management procedure

    Strong relationships with industrial partners; relationship of mutual respect and trust

    SAFETY IS NEWLEADS TOPMOST PRIORITY

    CREW SAFETY

    ENVIRONMENTAL PROTECTION

    Newlead Shipping S.A.: Oil Tankers

    INTEGRATION ONE-STOP WORLDWIDE SEABORNE TRANSPORTATION SERVICES

    QUALITY COMPETENCE OPEATIONAL FLEXIBILITY

    EXPERIENCED PERSONEL

    STRONG INDUSTRY RELATIONSHIP

    ASPHALT/BITUMEN OIL

    TANKER ABILITY IS TO KEEP

    TEMPERTURE OF CARGO AT

    200 O C (392 O F)

    OPEARTIONAL FLEXIBILITY

  • Monday, June 1, 2015 7

    Constant Commercial Competence

    Adaptive, prudent and opportunistic chartering strategy

    Continuous evaluation of market conditions and trends

    Capitalization on commercial relationships with oil majors and traders; competitive employment of asphalt/bitumen oil tankers

    Capturing trading opportunities despite market conditions in the dry bulk sector

    Cash flow stability

    Sustainable revenues

    Opportunity to participate in market turnarounds

    Limiting counterparty risk

    FLEET UTILIZATION PER VESSEL 2014 FLEET UTLIZATION PER SECTOR 2013-2014

    Optimum balance among long term period charters, spot employment and contracts of affreightment

    VESSEL 2014

    NEWLEAD VICTORIA 98.59%

    NEWLEAD CASTELLANO 95.94%

    NEWLEAD ALBION 90.22%

    NEWLEAD VENETICO 93.82%

    NEWLEAD MARKELA 89.47%

    VESSEL 2014

    NEWLEAD GRANADINO 100.00%

    NEPHELI 100.00%

    SOFIA 90.30%

    KATERINA L1 76.50%

    IOLI1 67.67%

    1. In 2014 the Katerina L and the Ioli underwent scheduled repairs

  • Monday, June 1, 2015 8

    Strong Commercial Relationships

    Competitive employment profile of asphalt/bitumen oil tankers with reputable counterparties

    DRY BULK CHARTERES

    ASPHALT/BITUMEN OIL CHARTERES

    Diversified dry bulk charterers; longlisting commercial relationships with leading dry bulk charterers

  • Monday, June 1, 2015 9

    Continuous Operational Competence

    ASPHALT/BITUMEN OIL TANKERS

    International Maritime Organization (IMO) regulations and responsibilities

    MARPOL 73/78 requirements; recognizing environmental care

    Ship operations in accordance with ISO 14001:2004 and ISO 50001:2011

    Experienced technical department ensuring quality and safety while containing OpEx

    Improved transparency; allowing effective management of third-party vessels

    Constant investment in the maintenance and improvement of the vessels condition

    NewLead mandates at least two inspections per year for each vessel

    Test of cargo pumps and critical equipment prior every loading and discharging of asphalt/bitumen oil tankers

    DRY BULK CARRIERS APPROVALS

  • Monday, June 1, 2015 10

    Trading Routes Appendix A Dry bulk Carriers and Asphalt/Bitumen Oil Tankers

    Dry bulk carrier: Newlead Victoria

    Asphalt/Bitumen Oil tanker: Nepheli

  • Monday, June 1, 2015 11

    Commodity Importing Countries Exporting Countries

    Aggregates Norway, Scotland

    Alumina China, USA, Ukraine Indonesia, Australia, Jamaica

    Bauxite China, USA, Ukraine Indonesia, Australia, Jamaica

    Cement United States, France, Russia Turkey, China, Thailand

    Coal Asia, Western Europe Australia, Indonesia, United States

    Copper China, Japan, India Chile, Peru

    GrainsAsia Pacific region (e