Global port operator International Container Terminal Services, Inc. (ICTSI) reported a net income of US$92.6 million in the first half of 2016, a 12% decline from $105.7 million in the same period last year.
Revenues dropped 0.2% to $550.8 million from $552.1 million, mainly due to unfavorable container volume mix, lower non-containerized and storage revenues, and unfavorable translation impact of the depreciation of local currencies to the US dollar at certain terminals, ICTSI said in a statement.
The decline was partly offset by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq. Excluding the translation impact of local currency depreciation to the US dollar, consolidated gross revenues would have increased by 3%, the port operator noted.
For the second quarter of 2016, gross revenues increased 11% to $284.3 million from $256.0 million in the same period last year. The growth in the second quarter, ICTSI said, was driven by the continuing ramp-up at ICTSI Iraq, tariff rate adjustments and new contracts with shipping lines and services at certain terminals.
For the first six months of the year, ICTSI handled consolidated volume of 4.265 million twenty-foot equivalent units (TEUs), 10% more than the 3.888 million TEUs handled in the same period in 2015. The increase in volume was mainly due to the continuing ramp-up at ICTSI Iraq; new shipping line customers and services in the company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, Karachi, Pakistan and Jakarta, Indonesia; and improvement in trade activities at most of the terminals in the Asia region. For the quarter ending June 30, 2016, total consolidated throughput was 16% higher at 2.211 million TEUs compared to 1.905 TEUs in 2015.
Volume from the Asia segment increased by 11.2% to 2.235 million TEUs in the first half of 2016 from 2.009 million TEUs in the same period in 2015 as a result of improvement in trade activities in most of the terminals in the Asia region; and new shipping lines and services at two of ICTSI’s ports. The Asia operations accounted for 50.2% and 51.7% of the consolidated volume for the six months ended June 30, 2015 and 2016, respectively.
Volume from the Americas segment increased by 5.7% to 1.497 million TEUs from 1.417 million TEUs as a result of new shipping lines and services at ICTSI’s two terminals in the region. Volume from the Americas segment accounted for 36.4% of the consolidated volume for the six months in 2016. Volume from the Europe, Middle East, and Africa segment, meanwhile, increased 15.3% to 532,408 TEUs from 461,944 TEUs primarily due to continuous growth and ramp-up at ICTSI Iraq; and marginal economic recovery at two other terminals in the segment.
Capital expenditures for the first half of 2016 amounted to $157.8 million, approximately 38% of the $420 million capital expenditure budget for the full year 2016.
ICTSI said the established budget is mainly allocated for the completion of the initial stage of the company’s new container terminals in Australia, Democratic Republic of Congo and Iraq, and the continuing development of the company’s projects in Honduras and Mexico. In addition, ICTSI invested $32.3 million in the development of SPIA, its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. The company’s share for 2016 to complete the initial phase of the project is approximately $60 million.
ICTSI develops, manages and operates container terminals in the 50,000 to 2.5 million TEU/year range in four continents and continues to pursue container terminal opportunities around the world.
