BAGHDAD: International Container Terminal Services, Inc. (ICTSI) ended the first three months of the year with positive income and revenues on strong operating income, among others.
ICTSI reported yesterday its unaudited consolidated financial results for the quarter ending March, highlighting its revenue from port operations, which increased by 12 percent to US$297.2 million compared to the US$266.5 million it had in the same period last year.
The company’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) also went up to US$147.0 million, 21 percent higher than the US$121.9 million generated in the first quarter of 2016, while its net income attributable to equity holders increased by 23 percent to US$51.7 million, more than the US$42.2 million it earned in the same period last year.
A disclosure to the Philippine Stock Exchange on Tuesday showed that ICTSI’s strong earnings result was due to its strong operating income tapered by higher depreciation charges, higher interest and financing charges, and an increase in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), which increased from US$2.1 million in the first quarter of 2016 to US$7.4 million for the same period in 2017 as the company started full commercial operations.
SPIA is ICTSI’s joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. As for the increase in revenues, the company said it was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, and the contribution from the Company’s new terminal in Matadi, DRC.
Excluding the new terminal in DRC, consolidated gross revenues increased by eight percent. During the period, ICTSI also handled consolidated volume of 2,272,647 twenty-foot equivalent units (TEUs), 11 percent more than the 2,053,639 TEUs handled in the same period in 2016.
“The increase in volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq, and the contribution of ICTSI Democratic Republic of Congo (IDRC), the Company’s new terminal in Matadi, DRC,” ICTSI told the stock exchange.
Excluding the new terminal in DRC, consolidated volume increased by 10 percent. The firm’s Capital expenditure in the first quarter of 2017 amounted to US$33.0 million, approximately 14 percent of the US240.0 million capital expenditure budget for the full year 2017.
The established budget is mainly allocated for the completion of the initial stage development of the Company’s greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the Company’s project in Australia; continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila. In addition, ICTSI invested US$9.1 million in SPIA in Buenaventura, Colombia.