Global port operator International Container Terminal Services, Inc. (ICTSI) has reported a comprehensive net income of US$245.993 million in 2017, 56.4% higher than $157.269 million posted in 2016.
Revenue from port operations reached $1.244 billion in 2017, 10% more than the $1.128 billion earned in 2016, ICTSI said in a statement.
The increase in net income was mainly due to the continuing ramp-up at the company’s new terminal in Matadi, Congo; strong operating results from the terminals in Iraq, Mexico, Honduras, Madagascar, China, Poland, and Brazil; and the gain after the sub-concession agreement in Lagos, Nigeria, was terminated.
The increase, however, was tapered by higher interest and financing charges, higher depreciation and amortization expenses, start-up costs at the company’s terminal in Melbourne, Australia, and increase in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. in Buenaventura, Colombia.
Gross revenues rose mainly due to higher volume, tariff rate adjustments at certain terminals, new contracts and services with shipping lines, and the contribution from the company’s new terminals in Matadi and Melbourne.
ICTSI last year handled a consolidated volume of 9.153 million twenty-foot equivalent units (TEUs), 5% more than the 8.689 million TEUs serviced in 2016.
The port operator said the increase in volume was primarily due to continuing improvement in global trade activities particularly in emerging markets; continuing ramp-up at ICTSI’s operations in Basra, Iraq; new services in Manzanillo, Mexico; and contribution of new terminals in Matadi and Melbourne.
Excluding the new terminals, consolidated volume would have increased by 4%.
Net capital expenditures amounted to $174.8 million, about 73% of the $240 million capital expenditure budget for 2017. These were mainly to fund the completion of the initial-stage development of the company’s greenfield projects in Congo and Iraq; the second-stage development of the project in Australia; continued development of container terminals in Mexico and Honduras; and capacity expansion at its terminal operations in Manila.
In addition, ICTSI invested $25 million in developing SPIA.
For 2018, the group’s capital expenditure budget is about $380 million, mainly allocated for the capacity expansion of its terminal operations in Manila, Mexico, and Iraq; continuing rehabilitation and development of the container terminal in Honduras; procurement of additional equipment and minor infrastructure works at its newly acquired terminal operations in Papua New Guinea; and the completion of its new barge terminal project in Cavite City, Philippines.
ICTSI is a global player that develops, manages and operates container terminals in the 50,000- to three million-TEU annual range.
