ICTSI nine-month profit up 5% on gains from overseas terminals

Good revenue flows from some of its overseas terminals helped Philippines-based port operator International Container Terminal Services Inc (ICTSI) to a 5% rise in net profit for the first nine months to $149.3m from $141.9m previously.

The company said in a press release that revenue from port operations for the year-to-date also rose 10% to $918.3m from $835.0m in the previous corresponding period.

The good profit gain was due to the continuing ramp-up at its new terminal in Matadi, Congo, strong operating income contribution from the terminals in Iraq, Mexico, Honduras, Brazil and Madagascar, and the exceptional gain from the termination of its sub-concession agreement in Lagos, Nigeria, ICTSI said.

This was however offset by higher interest and financing charges, higher depreciation and amortization, start-up costs at its terminal in Melbourne and a rise in its share in the net loss at Sociedad Puerto Industrial Aguadulce (SPIA), its joint venture container terminal project with PSA International (PSA) in Buenaventura, Colombia, which ballooned to $25.6m from $4.7m previously as the company started full commercial operations at the beginning of the year.

Without the one-off gain from the termination of the sub-concession agreement in Nigeria, net profit would have been flat ICTSI noted.

The impact of higher financing costs and start-up costs and underperformance at ports in Melbourne and Buenaventura respectively was even more pronounced in the third quarter, with net profit down 16% to $45.7m. Revenue from port operations however increased 11% to $314.6m from $284.2m previously.

For the year-to-date, ICTSI handled consolidated volume of 6.8m teu, up 6% from the 6.4m teu moved previously.

The increase in volume was primarily due to rises in global trade, especially in the emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and contribution of new terminals in Matadi, and Melbourne.

Third quarter total consolidated throughput rsoe 6% to 2.3m teu from 2.2m teu previously.

Gross revenues also saw healthy performance, rising 10%to $918.3m and has kept up a strong momentum with the corresponding third quarter figure rising 11% to $314.6m.

ICTSI attributed the increase in revenues was mainly to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, as well as contributions from the new terminals in Congo and Australia.

ICTSI has expended just less than half of its $240m capital expenditure budget for 2017 so far. Year-to-date capex amounted to $113.5m.

The budget has been allocated for the completion of the initial stage development of greenfield projects in Congo and Iraq, second phase of the Melbourne project and continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila, ICTSI concluded.

ICTSI has also pumped in $25.2m into its SPIA joint venture project with PSA International in Buenaventura to fund the completion of the initial phase and to finance start-up operations.

Posted 08 November 2017

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Vincent Wee

Asia Editor, Seatrade Maritime News