International Container Terminal Services, Inc. (ICTSI) reported a 207% increase in 2016 net income attributable to equity holders to $180 million from $58.5 million in 2015, thanks to volume growth from its port operations.
Gross revenues from port operations grew 7% in 2016 to $1.128 billion from $1.051 billion in the previous year, the port operator said in a statement.
The increase in revenues was mainly due to improved trade activities at most of its Philippine terminals resulting in volume growth; new contracts with shipping lines and services at the terminals in Indonesia, Pakistan, Ecuador, and Mexico; tariff rate adjustments at certain terminals; increase in storage and special services revenues at the terminal in Honduras; favorable container volume mix at most of the company’s terminals; and continuing ramp-up at ICTSI Iraq.
The growth in revenue was, however, tempered by lower storage and non-containerized revenues at Tecon Suape S.A. in Recife, Brazil; weaker short-sea trade and reduced vessel calls at Baltic Container Terminal Ltd. in Gdynia, Poland; discontinued vessel calls at ICTSI Oregon in the U.S., and unfavorable translation brought about by the 4% depreciation of the Philippine peso and 18% depreciation of the Mexican peso.
For the fourth quarter of 2016 alone, total consolidated gross revenue was 13% higher at $293.4 million compared to $259.3 million in the same period in 2015.
ICTSI handled a consolidated volume of 8.689 million twenty-foot equivalent units (TEUs) in 2016, or 12% higher than the 7.776 million TEUs handled in 2015.
The higher volume was mainly due to continuing volume ramp-up at ICTSI Iraq; new shipping lines and services at Contecon Manzanillo S.A. in Manzanillo, Mexico, Contecon Guayaquil S.A. in Guayaquil, Ecuador, and the terminals in Indonesia; and improved trade activities in Madagascar International Container Terminal Services, Ltd. in Toamasina, Madagascar, Adriatic Gate Container Terminal n Rijeka, Croatia, and in most of the Philippine terminals.
For the fourth quarter of 2016, total consolidated throughput was 12% higher at 2.254 million TEUs compared to 2.008 million TEUs in the same period in 2015.
Capital expenditures for 2016 amounted to $391.9 million. Excluding capitalized borrowing costs and other expenses, capital expenditures amounted to $353.5 million, about 84% of the $420 million capital expenditure budget for full-year 2016.
The capital expenditure was mainly to fund the initial development of the company’s greenfield projects in Australia, Congo, and Iraq; the continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila and Ecuador.
In addition, ICTSI invested $41.2 million, or 69% of its $60 million budget, to develop Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia.
The group’s capital expenditure budget for 2017 is around $240 million, mainly allocated for the completion of the initial development of the company’s greenfield projects in Congo and Iraq; the second stage of development of the company’s project in Australia; continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion of its terminal operations in Manila. As for ICTSI’s joint-venture container terminal development project in Buenaventura, Colombia, the company allocated some $25 million for its share in 2017 to complete the initial phase of the project.
ICTSI is the developer, manager, and operator of container terminals with a capacity range of 50,000- to 2.5 million TEUs a year. It has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.