Rough Sailing for International Shipholding
International Shipholding loads Coatzacoalcos, Mexico-bound rail cars onto a ferry at the Port of Alabama’s rail ferry terminal in Mobile.
Photo courtesy ISHC, by Peter Majtan, DERYL Studios 2007
Mobile-based International Shipholding Corp. began trading under the symbol ISHC on the OTCQX market in December after falling off the New York Stock Exchange due to being out of listing requirements compliance. The market cap on International Shipholding dipped below $12 million after shares plunged 89 percent, mostly due to weak dry bulk shipping rates this year, according to the website Seeking Alpha. NYSE listees must maintain average global market capitalization of at least $15 million over a consecutive period of 30 trading days.
A December news release stated that ISH has reduced its debt outstanding to approximately $160.1 million, in part by the sale of the PCTC Glovis Countess, a Supramax vessel and three bulk carriers. “These three additional transactions, along with regularly scheduled debt payments in January, will further reduce debt outstanding to approximately $127.2 million by January 31, 2016,” according to the statement. The company’s strategic plan calls for it to reduce its debt outstanding to between $85 million and $90 million by June 30.
ISH, through its subsidiaries, operates a diversified fleet of U.S. and International Flag vessels that provide worldwide and domestic maritime transportation services to commercial and governmental customers, primarily under medium to long-term charters and contracts.
The company moved from New Orleans to Mobile after Hurricane Katrina and announced in early 2014 it would move its headquarters back to New Orleans, but keep major operations in Mobile. The Alabama State Port Authority built a $19 million, double-decker railcar loading facility to support ISH, allowing it to roll loaded railcars onto ships for transport to Veracruz, Mexico. International Shipholding recorded annual revenue of more than $310 million in its 2013 fiscal year.
International Shipholding is the second Alabama-based public company to drop off the NYSE this year. Walter Energy was delisted in August, after its share prices dropped below the minimum of $1.