Home » Ports/Terminals » ICTSI eyes US market, posts 107% hike in income

INTERNATIONAL Container Terminal Services, Inc (ICTSI) is seeking to penetrate the US market under a 25-year contract to operate Port of Portland’s Terminal 6, Oregon’s only container shipping yard.

The port commissioners will begin scrutinizing ICTSI’s proposal by May 10.

Terminal 6 comes with about $1.6 million worth of equipment. The container vessel service at the terminal reportedly saves Oregon importers and exporters $52.3 million in inland transportation costs annually or about $381 per container.

Aside from the Port of Oregon port, ICTSI is looking at landing the management and operation contract for the Callao Port in Peru.

While headquartered in the Philippines, ICTSI is focusing its expansion overseas due to the country’s anemic business.

This year, ICTSI has earmarked $103 million in consolidated capital expenditures mainly for civil works, systems improvement, and purchase of major cargo handling equipment at its port operations in Manila, Brazil, Ecuador, and Madagascar.

Q1 earnings

For the first quarter of the year, ICTSI said it posted consolidated revenues of $100.7 million, up 30% over $92.8 million recorded in the same period last year.

Earnings before interest, taxes, depreciation and amortization of $56.6 million was also 47% higher than the $38.4 million generated in 2009.

ICTSI’s net income attributable to equity holders soared 107% to $22.8 million from $11 million earned last year due to an increase in volume brought about by a surge in global trade.

ICTSI handled consolidated volume of 962,028 twenty foot equivalent units (TEUs) in the first quarter, 27% more than the 755,958 TEUs in the same period in 2009.

The increase in volume was mainly due to the recovery of the global economy, particularly in markets where ICTSI ports are located.

Compared to the 841,756 TEUs handled in the first three months of 2008 — the highest first-quarter throughput level recorded until this year — the group’s consolidated volume for the first quarter of 2010 grew 14%.

First-quarter 2010 gross revenues from port operations increased 30% to $100.7 million, from the $92.8 million reported in the same period in 2009.

Compared to the $110 million of revenues booked in the first quarter of 2008, the current quarter’s revenues of $100.7 million translate to an increase of 10%. The growth was mainly due to more volumes handled in almost all of the group’s container terminals.

In addition, revenue contribution from the group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar, and China, which accounted for 91% of the group’s consolidated revenue for the quarter, increased 28% from $85.7 million in 2009 to $109.7 million in 2010.

Consolidated yield per TEU for the quarter inched up 2% to $105, from $103 for the same period in 2009 mainly due to favorable mix of total containers handled.

Total consolidated cash operating expenses for the quarter increased 10% to $46.9 million, from $41.9 million in the same period in 2009 due principally to the rise in equipment and facilities-related expenses related to the significant upswing in volume. Compared to the same period of 2008, however, consolidated cash operating expenses was slightly down due to the continued cost saving measures implemented throughout the group in 2009.

In the first three months of 2010, ICTSI’s capital expenditure amounted to $29.3 million mainly resulting from Tecon Suape, S.A.’s (Brazil) acquisition of container handling equipment, Contecon Guayaquil SA’s (Ecuador) civil works in order to expand handling capacity and improve operating efficiency and Manila International Container Terminal’s spending on Berth 6.

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