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