Global port operator International Container Terminal Services, Inc. (ICTSI) said its net income for the first nine months of the year rose 0.9% to US$ 143.665 million from $142.340 million in the same period last year.
Consolidated revenue from January to September 2015 increased 2% to US$792 million from $779.2 million reported in the same period last year, ICTSI said in a statement.
For the third quarter alone, the group said revenue decreased 11% to $239.9 million from $268.9 million.
ICTSI attributed the increase in revenues to volume growth at most of its terminals; favorable volume mix and higher ancillary services at Subic Bay International Terminal, Corp. (SBITC) in Subic Bay, Philippines; new shipping line contracts and services at Pakistan International Container Terminal (PICT) in Karachi, Pakistan; favorable impact of the consolidation of terminal operations in Yantai, China; continuing ramp-up at Operadora Portuaria Centroamericana, S.A. de C.V. (OPC) in Puerto Cortez, Honduras and Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico; and the revenue contribution of the group’s new terminal in Basra, Iraq.
ICTSI said these positive factors were, however, partially off set by unfavorable volume mix and lower storage and break-bulk revenues combined with the 38% depreciation of the Brazilian Reais against the US dollar at Tecon Suape S.A (TSSA) in Recife, Brazil; slow economic activity coupled with the 22% depreciation of the Euro at Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar; depreciation of the Mexican peso and Philippine peso; discontinued vessel calls by two major shipping lines as a result of continuing labor disruption at ICTSI Oregon, Inc. (IOI) in Portland, Oregon, USA; and weaker short-sea trade and reduced vessel calls at Baltic Container Terminal (BCT) in Gdynia, Poland.
Excluding revenues from the new terminal in Iraq, organic revenue growth was 1% lower, ICTSI noted.
The group’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 82% of the group’s consolidated revenues in the first nine months of 2015, grew 2% compared to the same period last year.
For the first nine months, ICTSI said it handled consolidated volume of 5.768 million twenty-foot equivalent units (TEUs), a 7% rise from the 5.410 million TEUs handled in the same period in 2014.
The port operator said the increase in volume was mainly due to the continuing volume ramp-up at CMSA and OPC; new shipping line contracts and services at PICT; increased demand for services at SBITC; favorable impact of consolidation at Yantai International Container Terminal (YICT); and the contribution of the group’s new terminal, ICTSI Iraq, in Basra, Iraq which began commercial operation in November 2014.
Excluding the volume generated by the new terminal in Iraq, organic volume growth was at 5%, ICTSI noted. The group’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77% of the group’s consolidated volume in the first nine months of 2015, grew 5% compared to the same period last year.
For the third quarter of 2015, total consolidated throughput was 2% higher at 1.880 million TEUs compared to 1.844 TEUs in the same period in 2014.
Capital expenditures for the first nine months of 2015 amounted to $254.6 million, approximately 48% of the $530 million capital expenditure budget for the full year 2015. ICTSI said the established budget is mainly allocated for the completion of development at the group’s new container terminals in Mexico, Honduras and Iraq; capacity expansion in its terminal operation in Manila; and to start the development of the new terminals in Democratic Republic of Congo and Australia.
In addition, ICTSI invested $79.1 million in the development of Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. The company’s share for 2015 to complete phase one of the project is approximately $140 million.
ICTSI develops, manages and operates container terminals in the 50,000 to 2.5 million TEU/year range.
