INTERNATIONAL Container Terminal Services, Inc’s (ICTSI) net income for the first nine months of the year surged 97% year on year to $73 million from $37.2 million due to the strong performance of most of its units worldwide.
The latest results exceeded the previous record performance in the same period in 2008.
Revenues from port operations grew 27% to $380.6 million compared to last year’s $299.3 million. Earnings before interest, taxes, depreciation and amortization of $182.4 million were also up 41% from $129.1 million.
ICTSI chair and president Enrique Razon said the higher net income was mainly caused by the upsurge in revenues, modest increase in cash operating expense, lower effective tax rate for the period, and a one-time gain on sale of non-core assets.
For the quarter ending September 30, 2010, revenue from port operations increased 21%, from US$110.5 million to $133.6 million. Net income attributable to equity holders grew 119%, from $14.0 million to $30.7 million.
For the period in review, consolidated volume handled by ICTSI reached 3.070 million twenty foot equivalent units (TEUs), 21% higher compared to the 2.533 million TEUs handled in the same period in 2009. The increase was attributed to continued recovery in global trade, particularly in markets where ICTSI’s ports are located.
For September alone, boxed cargo handled was at 1.060 million TEUs from 943,805 TEUs in 2009.
Throughput from the company’s container terminal operations in Asia jumped 21% to 1.941 million TEUs for the period from 1.604 million TEUs in 2009.
Asia operations accounts for 63% of consolidated volume in the first three quarters of 2010. For the third quarter of 2010, throughput from Asian operations grew 9% to 652,164 TEUs from 597,076 TEUs in the same period in 2009.
Volume from the container terminal operations in the Americas grew 21% to 758,325 TEUs in the first three quarter of 2010 compared to the 626,410 TEUs handled in the same period in 2009. The Group’s container terminal operations in the Americas accounts for 25% of consolidated volumes in the first three quarters of 2010 particularly its ports in Tecon Suape, S.A. in Brazil and Contecon Guayaquil SA in Ecuador that demonstrated impressive year-to-date volume growth levels of 39% and 14%, respectively.
Container terminal operations in Europe, Middle East, and Africa (EMEA) handled 370,820 TEUs in the first nine months of 2010, 22% higher compared to the 302,754 TEUs handled in the same period in 2009. Container terminal operations in EMEA, which accounted for 12% of consolidated volumes in the first three quarters of 2010, delivered excellent results with all operating terminals posting double-digit increases in volumes handled. Most notable are the performances of Baltic Container Terminal in Poland and Batumi International Container Terminal in Georgia, which registered impressive volume growth levels of 29% and 59%, respectively.
For 2010, the total estimated consolidated capital expenditure is approximately $123 million mainly for civil works, systems improvement, and purchase of major cargo handling equipment at its port operations in Manila, Brazil, Ecuador, and Madagascar.
