Home » Breaking News, Ports/Terminals » ICTSI posts 39% jump in income from Jan to Sept

International Container Terminal Services, Inc (ICTSI) recorded a 39% rise in net income to $101.4 million in the first three quarters of the year compared to $73 million year-on-year due to higher revenues and the sale of some non-core assets.

“The higher net income attributable to equity holders was mainly due to the upsurge in revenues, lower effective tax rate for the period and a one-time gain on sale of non-core assets. Excluding the effect of non-recurring income and charges in both 2011 and 2010, net income attributable to equity holders for the first nine months of 2011 would have been $95.3 million, 50% higher than the $63.6 million in the same period in 2010,” the Manila-based ICTSI said in a statement.

This year, ICTSI sold its 16.79% ownership stake in Portek International Limited, and booked a one-time equity tax charge imposed by the Colombian tax authorities on all legal entities and individuals in Colombia.

In 2010, ICTSI sold its 9.54% ownership stake in Subic Shipyard and Engineering, Inc and 8.56% ownership stake in Consort Land, Inc and wrote down the carrying value of certain property assets related to the company’s greenfield project in Buenaventura, Colombia.

Gross revenue from port operations rose 29% to $490.9 million from last year’s $380.6 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) reached $215.2 million, an 18% improvement over $182.5 million generated in 2010.

Higher revenues for the period in review was mainly due to strong volume growth across all geographic segments of the group, higher storage revenues and ancillary services, favorable volume mix, and the inclusion of new terminals in Portland, Oregon, US, and Rijeka, Croatia, ICTSI said.

For the first three quarters of the year, ICTSI handled consolidated volume of 3.844 million twenty-foot equivalent units (TEUs), up 25% from the 3.070 million TEUs in the same period last year.

The company attributed the increase to the continued upturn in international trade, particularly in markets where ICTSI’s ports are located, and the consolidation of new ports in Portland, Oregon, USA and Rijeka, Croatia.

Volume from the group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74% of the consolidated volume for the first nine months of 2011, rose 19% from 2.397 million TEUs to 2.845 million TEUs while for the third quarter, total TEUs handled was 28% higher at 1.360 million TEUs compared to 1.060 million TEUs in 2010.

Total consolidated cash operating expenses for the period in review grew 46% to $209.3 million from $143.5 million last year. The increase was mainly driven by higher labor and contracted services, overtime, fuel and power consumption and repairs and maintenance and start-up and operating expenses of new ports in Portland, Oregon, USA and Rijeka, Croatia.

ICTSI’s capital expenditure amounted to $130.3 million in the first nine months, majority of which was spent for civil works and major equipment at terminals in Manila, Ecuador and Brazil and port development projects in Argentina and Mexico.

The established capital expenditure budget for the full year of $356 million is mainly allocated for new projects in Argentina, Mexico and Colombia, and for civil works, systems improvement, and purchase of major cargo handling equipment at its terminal operations in Manila, Brazil and Ecuador.

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