International Shipholding Corporation (NYSE:ISH) announced today that wholly-owned subsidiary Waterman Steamship Corporation has been awarded a time charter contract with Military Sealift Command. The contract is for a firm one year period after which the Military Sealift Command will have three one-year options and one 11-month option to extend the contract. The time charter, which is scheduled to commence in mid-December, is expected to generate gross revenues of approximately $10 million for the firm initial one-year period and approximately $50 million if all the options are exercised.
International Shipholding Corporation also announced that it entered into an agreement to purchase a 2000-built multi-purpose ice strengthened vessel to be named GREEN WAVE which will be used to service the contract. The company plans to fund the purchase with available cash and by arranging permanent financing.
Mr. Niels M. Johnsen, chairman and chief executive officer, commented, “We are pleased to have been awarded this contract and to continue our long-standing relationship with the Military Sealift Command. Consistent with our strategy, we have increased our contracted revenue stream and further diversified our fleet. We remain committed to continue to seek growth opportunities to increase our Company’s long-term earning’s potential for the benefit of our shareholders.”
August 23, 2011