Boston, MA 05/19/2014 (wallstreetpr) – Newlead Holdings Ltd (NASDAQ:NEWL), a $4 million international shipping company that transports refined products and dry bulk goods, announced today that it received the delivery of first of its two vessels that it acquired in March 2014.
The company announced the acquisition of two vessels that will boost its existing fleet. It expects to add more vessels to its fleet this year and the next few years as it looks forward to recovery in the water transportation services.
Last year was a challenging year for the Greece-based water transportation company. The market troubles were widespread in 2013 that almost every shipping company suffered a negative impact on the top-line and bottom-line.
The challenges for the shipping industry in 2013 was heightened by the poor prices of commodities such as coal and iron that in turn affected their supply and diluted the demand for transportation services.
However, the recovery in the global economy as can be seen from the U.S. to Europe and Asia indicates a huge potential for shipping companies. As such, Newlead Holdings Ltd (NASDAQ:NEWL) expects to ready its fleet for the anticipated business.
Fleet addition to boost revenue
Newlead Holdings Ltd (NASDAQ:NEWL) in March announced $37 million deal to acquire two vessels at the cost of $18.5 each. The company financed part of the acquisition costs with its own cash and entered into a financing arrange with another institution with back of its own institutional investors. The just delivered vessel – Newlead Albion – will generate $2 million yearly in earnings before interest.
The company expects the second vessel under the March acquisition deal to arrive in July. However, it also expects to add another modern vessel to its fleet in August.
The new vessel acquisition will not only support revenue growth by enhancing the company’s capacity, but will also support the company’s cost-saving efforts in addition to reducing its carbon footprint. The newly acquired vessels are eco-type and as such will reduce fuel costs and carbon emission.
Modernizing the fleet
According to Newlead Holdings Ltd (NASDAQ:NEWL) CEO, Michael Zolotas, the acquisition of the vessel not only contributes to the fleet modernization efforts that the management is trying to undertake in the company, but also signals the confidence that financial institutions have in the company. As such, the gesture means that the company could secure future friendly funding terms for its acquisition projects.
