TSX Symbol: HNL
CALGARY, June 13 /CNW/ - Horizon North Logistic Inc. ("Horizon" or the "Corporation") announced today that it has recently entered into two long-term camp rental and catering service contracts. The first contract is associated with a hydro electric project in central British Columbia and calls for the provision of a 250 person, single room and private washroom style camp along with catering and camp management services. The contract term is for 50 months. Operation of the camp will be carried out through a joint venture with the Sexqeltkemc of the Secwepemc (Shuswap) First Nation.
The second contract is with an oil sands operator and calls for the provision of an 84 person executive style camp to house staff at an oil production facility. The contract term is for 60 months beginning November 2011.
Combined total revenue from the two projects is expected to be $58 million over the term of the contracts. The $17 million investment associated with the two contracts increases Horizon's planned capital spending in 2011 to $84 million.
"We continue to see strong demand for our camp and catering and matting services with customers increasingly willing to commit to long term service contracts. This bodes well for the Company's ability to generate sustainable cash flow to fund future growth and to provide additional return to shareholders through the payment of quarterly dividends, the first of which is due to be paid July 15th, 2011," noted Bob German, President and Chief Executive Officer of Horizon.
SOURCE Horizon North Logistics Inc.
For further information: Bob German, President and Chief Executive Officer or Scott Matson, Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone: (403) 517 - 4654; Fax: (403) 517 - 4678; Website: www.horizonnorth.ca