Home » Maritime, Ports/Terminals, Press Releases » ICTSI income jumps 29% in H1

Manila International Container Terminal, International Container Terminal Services, Inc’s flagship terminal. Photo from ICTSI.

International Container Terminal Services, Inc. (ICTSI) reported a net income of US$146.070 million in the first half of 2019, 29% higher than the $103.904 million in the same period last year.

Net income attributable to equity holders of $128.5 million grew by 42% compared to the $90.2 million earned in the same period last year mainly due to improved operating income contribution from the terminals in Iraq, Australia, Democratic Republic of Congo, and Subic in the Philippines; the continuing ramp-up at the new terminals in Papua New Guinea; and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA) in Buenaventura, Colombia.

The increase was partially tapered by a non-recurring gain from the interest rate swap related to pre-payment of project finance loan at its terminal operations in Manzanillo, Mexico in 2018. Excluding the non-recurring gain, consolidated net income attributable to equity holders would have increased by 47% in 2019.

“ICTSI’s performance in the first half of 2019 has been very positive. The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives. Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely. ICTSI is a robust business, strongly placed for the second half and the Board remains confident of the future,” ICTSI president and chairman Enrique K. Razon, Jr. said in a statement.

Revenues from port operations reached $751.8 million in the first half of 2019, an increase of 14% over the $661.8 million reported for the first six months of 2018.

The growth in revenues for the first half of 2019 was mainly due to volume growth; tariff adjustments for certain services at multiple terminals; new contracts with shipping lines and services; continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico; and the contribution from the company’s new terminals in Lae and Motukea in Papua New Guinea.

For the second quarter of 2019, gross revenues increased 9% to $368 million from $336.4 million in the second quarter of 2018.

ICTSI handled a consolidated volume of 5.042 million twenty-foot equivalent units (TEUs) in the first six months of 2019, 7% more than the 4.714 million TEUs handled in the same period in 2018. The increase in volume was mainly due to continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico; improvement in trade activities in Subic, Philippines, Matadi, Congo, and Rijeka, Croatia; new shipping lines and services in Gdynia, Poland; and the new terminals in Lae and Motukea in Papua New Guinea. For the second quarter of 2019 alone, total consolidated throughput was likewise 7% higher at 2.563 million TEUs compared to 2.389 million TEUs in 2018.

Capital expenditures, excluding capitalized borrowing costs, for the first six months of 2019 amounted to $120.5 million, approximately 32% of the $380 million budget for 2019.

The estimated capital expenditure budget will be utilized mainly for ongoing expansion projects in Manila, Mexico and Iraq; equipment acquisitions and upgrades; and for maintenance requirements.

ICTSI is a global developer, manager and operator of container terminals in the 50,000 to 3 million TEU/year range. It operates in 19 countries across six continents.

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