International Container Terminal Services, Inc. (ICTSI) reported a 21% increase in net income in the first half of the year to $105.6 million from $87.4 million year-on-year.
In a disclosure to the Philippine Stock Exchange, ICTSI said net income was bolstered by strong operating income from its three geographic segments, and gains from the $13.2-million sale of a non-operating subsidiary in Cebu, Philippines; termination of the management contract in Kattupalli, India amounting to $1.9 million; and settlement of insurance claims valued at $1.5 million in Guayaquil, Ecuador.
Excluding non-recurring items, recurring net income would be 3% higher at $85.1 million, ICTSI noted.
The port operator also reported a 23% increase in revenue from its port operations in the first half of 2014 to US$510.3 million from $413.7 million reported in the same period last year.
ICTSI attributed the growth to revenue contributions from its new terminals, favorable volume mix, stronger revenues from ancillary services, and tariff increases in key terminals.
Excluding revenues from its new terminals, organic revenue growth was 7%. ICTSI’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, and Pakistan accounted for 75% of the consolidated revenues in the first half of the year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 13% to $212.2 million in the first half compared with $188.1 million generated in the same period in 2013.
Gross revenues from April to June 2014 surged 28% to $261.4 million from the $204.4 million reported in the same period in 2013.
For the second quarter alone, ICTSI reported a 28% increment in revenue from port operations to $261.4 million from $204.4 million in the same quarter last year.
The port operator handled a consolidated volume of 3.566 million twenty-foot-equivalent units (TEU) for the first six months of 2014, up 18% from 3.027 million TEUs handled in the same period in 2013.
The increase was mainly due to the continuous growth in international and domestic trade at most of ICTSI’s terminals, the company said.
These included volumes processed by Contecon Manzanillo S.A. (CMSA) and Operadora Portuaria Centroamericana, S.A. de C.V (OPC), ICTSI’s new container terminals in Manzanillo, Mexico and Puerto Cortes, Honduras, respectively.
Excluding these two new terminals, organic volume grew 1%.
ICTSI’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 70% of the group’s consolidated volume in the first half of 2014.
From April to June 2014, total consolidated throughput was 18% higher at 1.809 million TEUs compared to 1.531 million TEUs in 2013.
The listed port operator has allotted $104.5 million for capital expenditure in the first six months of the year, or about 34% of the $310-million capital expenditure budget for the full year.
ICTSI said the budget will go mostly to the completion of the first phase of development of its new container terminals in Mexico and Argentina, and to kick-start the development of terminals in Honduras and the Democratic Republic of Congo.
In addition, ICTSI invested $23.9 million in SPIA, its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. ICTSI expects a share of about $120 million in 2014 in the project.
ICTSI develops, manages, and operates container terminals with an annual range of 50,000 to 2.5 million TEUs in six continents. Currently, it has 29 terminal concessions and port development projects in 21 countries worldwide.
Photo from www.ictsi.com
