Home » Breaking News, Maritime, Ports/Terminals » ICTSI first-half profit climbs 18% to $82.9M

Manila International Container Terminal, ICTSI’s flagship facility

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted unaudited consolidated net income of US$82.9 million for the first six months of this year, up 18% year-on-year, as revenue from port operations surged 20% to $413.7 million.

In a disclosure to the Philippine Stock Exchange, the global port developer and operator said earnings before interest, taxes, depreciation and amortization (EBITDA) reached $188.1 million, 26% higher than the $149.2 million generated in the same period in 2012.

The higher net income attributable to shareholders, which eclipsed the $70.3 million net profit for the same period last year, was due to strong revenue growth and better margins in key terminals, and the contribution from the new terminal in Karachi, Pakistan.

For the quarter ending June 30, 2013, revenue from port operations increased 19% from $204.4 million from $171.2 million a year ago, while EBITDA was 25% higher at $90.6 million from $72.4 million.

Net income for the quarter grew 21% to $42.2 million from $34.9 million and diluted earnings per share improved 21% to $0.018 from $0.015 in 2012, the group said.

ICTSI handled a consolidated volume of 3,027,005 twenty-foot equivalent units (TEU) for the first six months, 12% more than the 2,697,735 TEUs in the same period in 2012.

It attributed the increase in volume to the continuous growth in international and domestic trade in most of the company’s terminals and the volume generated by Pakistan International Container Terminal (PICT) in Karachi and PT Olah Jasa Andal (PT OJA) in Jakarta, Indonesia.

Excluding volume from the two recent port acquisitions and the effect of the cessation of the operations in Syria effective January 2013, organic volume growth remained flat. ICTSI said.

The company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 79% of the first-half consolidated volume and 85% of the group’s first-half consolidated revenue.

For the quarter ending June 30, 2013, total consolidated throughput was 13% higher at 1.53 million TEU, compared with 1.36 million TEU in 2012.

Gross revenues from port operations for the first six months of 2013 surged 20% to $413.7 million from the $345.0 million in the same period in 2012.

ICTSI said the revenue increase was mainly due to higher storage revenue and ancillary services, favorable volume mix, tariff rate hikes in certain key terminals, and the revenue contribution from the new terminals in Jakarta and Karachi.

Excluding the revenues from the new terminals and the effect of the cessation of the Syrian operations, organic revenue growth was at 8%.

Gross revenue from port operations for the quarter ended June 30 surged 19% to $204.4 million from $171.2 million in 2012.

Consolidated cash operating expenses in the first half grew 15% to $171.9 million from $149.0 million in the same period in 2012, mainly driven by higher volume-related expenses, government-mandated and contracted salary hikes in certain terminals, higher business development expenses, and the inclusion of expenses of the Jakarta and Karachi terminals.

Consolidated financing charges and other expenses for the first half surged 53% to $24.8 million from $16.2 million in 2012 on higher outstanding interest-bearing debt.

ICTSI issued $400 million of 10-year bonds in January 2013 mainly to fund its capital expenditure program for 2013 and refinance medium-term loans.

Capital expenditure for the period totaled $280.1 million, about 51% of the $550 million capex budget for full-year 2013 that is mainly allocated to the completion of terminal development projects in Mexico and Argentina, and the ramp-up of construction activities in Colombia and Davao.

Photo courtesy of ICTSI

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