Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Higher start-up project costs, lower revenues cut ICTSI Q1 profit 22% to $42m

Higher start-up project costs, lower revenues cut ICTSI Q1 profit 22% to $42m
Philippines-based port operator International Container Terminal Services Inc (ICTSI) first quarter net profit drop 22% to $42.2m from $54m previously due to lower revenues and increased costs due to new projects and terminals.

The company said in a stock market release that revenue from port operations fell 10% to $267m from $296m in the previous corresponding period due to lower storage and ancillary revenues, unfavourable container volume mix, lower capitalized borrowing costs, higher depreciation and amortization expenses and start-up costs of new terminals and projects.

“The decline in gross revenues was tapered by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq,” ICTSI said.

Operating costs, however, fell 15% to $101.5m from $119.7m previously, due to lower costs of repairs, maintenance and equipment rental at certain terminals. Lower fuel cost and variable costs at ICTSI Oregon and the favorable translation impact to the US dollar of the Brazilian, Mexican and Philippine terminals’ local currency expenses also helped lower costs, ICTSI said.

Throughput also increased slightly to 2.1m teu, 4% higher than the 2m teu handled in the previous first quarter, mainly due to the acquisition of new shipping line customers and services at terminals in Ecuador, Mexico, and Pakistan.

The continuing ramp-up at ICTSI Iraq and an improvement in trade activities at the terminals in Indonesia and most Philippine ports also helped boost volumes.

Of the $420m capital expenditure budgeted for 2016, the company has already spent $90m in the first quarter with a porion allotted to the completion of the new container terminals in Congo and Iraq and the continuous development in Australia.