ICTSI posts 5% hike in earnings

MANILA, Philippines – International Container Terminal Services Inc. (ICTSI) reported a five percent increase in net earnings in the first nine months from a year ago on the back of higher revenues.

ICTSI said net profit grew to $150.8 million in the nine-month period from $143.7 million in the same period last year.

Net income attributable to equity holders went up four percent to $141.9 million as of end-September this year from the previous year’s $136.2 million.

ICTSI’s gross revenues from port operations climbed five percent to $835 million during the review period from $792 million a year ago.

“The increase in revenues was mainly due to volume growth at most of the company’s terminals; tariff rate adjustments and new contracts with shipping lines and services at certain terminals; and the continuing ramp-up at ICTSI Iraq,” ICTSI said.

Total volume handled by the port operator reached 6.44 million 20-foot equivalent units (TEUs) in the first nine months, 12 percent more than the 5.77 million TEUs in the same period in 2015.

Consolidated cash operating expenses in the first three quarters meanwhile, went down five percent to $310.1 million from the previous year’s $326.6 million.

ICTSI attributed the decline to improved operational efficiencies resulting in lower costs of repairs and maintenance, lower fuel and power consumption combined with lower global fuel prices; the implementation of the company-wide cost optimization initiatives; and lower variable cost at ICTSI Oregon in Portland, US.

The port operator spent $297.9 million worth of capital expenditures for the January to September period.

Excluding capitalized borrowing costs and expenses, capital expenditures amounted to $273 million, approximately 65 percent of the $420 million capital expenditure budget for the year.

ICTSI is investing for the completion of the initial stage of new container terminals in Australia, Democratic Republic of Congo and Iraq, as well as development of projects in Honduras, Mexico and the joint venture container terminal development in Colombia.

A known leading global developer, manager and operator of container terminals, ICTSI continues to scout for opportunities around the world.