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ICTSI full year profit dragged down by one-time charges

ICTSI full year profit dragged down by one-time charges
Port operator International Container Terminal Services, Inc. (ICTSI) has posted a big drop in 2015 profit compared to the previous year due mainly to non-cash, one-time charges.

Profit for 2015 was recorded at $58.5m, a plunge of 68% from $182m in 2014. Last year, Manila-headquartered ICTSI recognised non-recurring write-downs totalling $116.2m from impairment and goodwill charges.

The 2015 revenue from port operations was down 1% year-on-year to $1.05bn due chiefly to unfavourable container volume mix, lower storage revenues and ancillary services, and negative foreign exchange transactions.

ICTSI handled consolidated volume of 7.77m teu in 2015, 5% more than 7.44m teu moved in 2014. The increase in volume was due primarily to continuing volume ramp-up at various ports including Mexico’s Manzanillo, Pakistan’s Karachi, Ecuador’s Guayaquil, Philippines’ Subic Bay, China’s Yantai, and Iraq’s Umm Qasr.

Looking ahead, ICTSI has allocated approximately $420m in capital expenditure for 2016 to be used to complete the initial stage of its new container terminals in Congo and Iraq, and continuing the development of its project in Australia.

With regards to ICTSI’s joint venture container terminal development project in Buenaventura, Colombia, the company allocated around $60m for its share in 2016 to complete the initial phase of the project.