Home » Ports/Terminals » ICTSI’s Jan-Sept income inches up 4%

ICTSI flagship, the Manila International Container Terminal

Publicly listed Philippine port operator International Container Terminal Services, Inc (ICTSI) posted a 4% increase in net income in the first three quarters of the year to $105.8 million from $101.4 million year-on-year.

Gross revenues from port operations reached $524.7 million, up 7% from $490.9 million. This was due to volume growth across the group’s geographic segments, higher storage revenues and ancillary services, favorable volume mix, and the inclusion of new terminals in Portland, Oregon, USA; Rijeka, Croatia; Katupalli, India; and Jakarta, Indonesia, the company said in a statement.

Revenue contribution from the company’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 84% of the group’s consolidated revenues from January to September, rose 6%, from $418.9 million to $442.6 million.

Consolidated cash operating expenses grew 8% to $225.5 million from $209.3 million due mainly to higher volume-related expenses; government-mandated and contracted salary rate increases in certain terminals; higher concession fees in the company’s operations in Recife, Brazil; the full-period consolidation of expenses of terminals in Portland, Oregon and Rijeka, Croatia; and the inclusion of expenses for new terminals in Jakarta, Indonesia and Kattupalli, India.

For the third quarter alone, net income declined 14% to $35.5 million from $41.4 million in the same quarter last year although revenues from port operations rose 5% to $179.7 million from $171.8 million.

Gross revenues for the quarter was up 5% to $179.7 million from $171.8 million as a result of slightly higher volume, tariff rate increases in certain key terminals; favorable volume mix; new shipping line customers; higher revenues from storage and ancillary services; and the additional contribution of PT OJA and ICTSI India, the company’s newly acquired terminal operations in Jakarta, Indonesia and Katupalli, India, respectively.

Consolidated volume reached 4.083 million twenty-foot equivalent units (TEUs), 6% higher than the 3.844 million TEUs handled in the same period in 2011.

The company attributed the increase to growth in international and domestic trade; new shipping line customers and routes; continuous containerization of break-bulk cargoes; the full period contribution of new ports in Portland, Oregon, USA and Rijeka, Croatia; and consolidation of volume generated by new container terminal operations in Jakarta.

The group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China accounted for 74% of consolidated volume for the first nine months of the year or 3.039 million TEUs, up 7% from 2.845 million TEUs handled in the same period last year.

For the third quarter, the total TEUs handled was 2% higher at 1.386 million TEUs compared to 1.360 million TEUs in 2011 due mainly to the new port in Jakarta, which contributed 40,343 TEUs.

Capital expenditure for the first nine months amounted to $319 million against a full-year budget of $550 million. The amount spent for the period was for the construction of a new berth, additional yard space and acquisition of major cargo-handling equipment in the container terminal in Manila; capacity expansions in its operations in Ecuador and Brazil; and development of new container terminals in Argentina and Mexico.

Photo courtesy of International Container Terminal Services, Inc

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