International Container Terminal Services, Inc. (ICTSI) reported a net income attributable to equity holders of US$153.3 million in the first nine months of 2018, up 3% from $149.3 million in the same period last year on the back of strong operating income from organic terminals, lower share in net loss at its Colombia terminal, and a non-recurring gain from its terminal in Mexico.
For the third quarter alone, net income atributable to equity holders grew 22% to $55.6 million, ICTSI said in a statement. The results are based on unaudited financial results.
Group revenues from port operations reached $1 billion from January to September 2018, an increase of 10% over the $918.3 million reported in the same period in 2017.
The increase in revenues was mainly due to volume growth; new contracts with shipping lines and services; increase in revenues from non-containerized cargoes, storage and ancillary services; and the contribution from the company’s new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated gross revenues would have increased by 5%.
The company also reported a decrease 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. (PSA) in Buenaventura, Colombia; and a $2.8 million non-recurring gain from the pre-termination of interest rate swap related to the pre-payment of the project finance loan at its terminal in Manzanillo, Mexico in May 2018.
The increase in the consolidated net income was tapered by the drag from the new terminals and a $7.5 million non-recurring gain on the termination of the sub-concession agreement in Nigeria in the second quarter of 2017.
For the third quarter of 2018 alone, gross revenues increased 9% to $344 million from $314.6 million year-on-year.
For the first nine months of the year, ICTSI handled consolidated volume of 7.152 million twenty-foot equivalent units (TEUs), 5% more than the 6.837 million TEUs handled in the same period in 2017.
The increase in volume was primarily due to improved trade activities at most of the company’s terminal locations and the contribution of new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated volume would have increased by 2%.
For the quarter ended September 30, 2018, total consolidated throughput was 6% higher at 2.438 million TEUs compared to 2.291 million TEUs in 2017. Excluding the new terminals, consolidated volume would have increased by 4% in the third quarter of 2018.
Capital expenditures, excluding capitalized borrowing costs, for the first nine months of 2018 amounted to $196.4 million, approximately 52% of the $380 million capital expenditures budget for the full year 2018.
The established budget is mainly allocated for the following: expanding capacity at its terminal operations in Manila, Mexico and Iraq; continuing rehabilitation and development of the company’s container terminal in Honduras; procuring additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea; and completing its new barge terminal project in Cavite City, Philippines.
