Home » Maritime, Ports/Terminals » ICTSI’s Q1 net income soars 71% owing to higher volumes

International Container Terminal Services, Inc. (ICTSI) posted a net income of US$81.5 million in the first quarter of 2019, 71% higher than the $47.7 million earned in the same period in 2018.

Revenue from port operations reached $383.8 million, 18% higher than the $325.4 million reported for the same period last year, ICTSI said in a statement.

The increase in revenues was mainly due to volume growth; tariff adjustments at certain terminals; new contracts with shipping lines and services; increase in revenues from non-containerized cargoes, storage and ancillary services; and the contribution from the company’s new terminals in Lae and Motukea in Papua New Guinea.

Net income attributable to equity holders of $72.4 million was likewise higher by 77% over the $40.9 million earned in the same period last year.

The growth was due to the solid operating income highlighted by strong operational and financial performance at Victoria International Container Terminal (VICT) in Melbourne, Australia; lower financing charges; and a significant improvement in the operations at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), ICTSI’s joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.

“ICTSI has continued to grow and delivered a strong first quarter financial performance underpinned by operational improvements and higher contributions from our new ports including VICT in Melbourne, Australia, Lae and Motukea in Papua New Guinea. While we remain very mindful of the economic backdrop, we remain confident about the future prospects of the business as we build on this positive momentum,” ICTSI chairman and president Enrique K. Razon, Jr. said.

ICTSI handled a consolidated volume of 2.479 million twenty-foot equivalent units (TEUs) for the quarter ended March 31, 2019, which was 7% more than the 2.326 million TEUs handled in the same period in 2018. The increase in volume was primarily due to improvement in trade activities, new shipping lines and services and continuous volume ramp-up at certain terminals.

Consolidated cash operating expenses in the first quarter of 2019 was 5% higher at $112 million compared to $106.2 million in the same period in 2018, mainly due to government-mandated and contracted salary rate adjustments at certain terminals; increase in information technology-related expenses; and full quarter cost contribution of the two terminals in Papua New Guinea.

Capital expenditures excluding capitalized borrowing costs for the first quarter of 2019 amounted to $59.6 million, approximately 16% of the $380 million budget for the full year 2019.

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

ICTSI develops, manages, and operates container terminals in the range of 50,000 to 3 million TEUs yearly. It operates in six continents and continues to pursue container terminal opportunities around the world.

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