Global port operator International Container Terminal Services, Inc. (ICTSI) reported a 5% increase in net income in the first nine months of 2016 to US$150.813 million from $143.665 million in the same period last year.
Revenue from port operations from January to September 2016 likewise went up 5% to $835 million from $792 million reported in the same period last year.
ICTSI, in a statement, said the improved revenue was mainly due to volume growth at most of the company’s terminals; tariff rate adjustments and new contracts with shipping lines and services at certain terminals; and the continuing ramp-up at ICTSI Iraq.
These, however, were partially offset by an unfavorable container volume mix and lower non-containerized and storage revenues at certain terminals.
For the third quarter alone, net income rose 53% to $58.204 million from $37.958 million last year, while revenue increased 18% to $284.2 million from $239.9 million.
For the first nine months of 2016, ICTSI handled a consolidated volume of 6.4 million twenty-foot equivalent units (TEUs), up 12% from the 5.8 million TEUs handled in the same period in 2015. All three geographic segments in Asia; Europe, Middle East and Africa; and the Americas continued to post positive volume growth for the third consecutive quarter, ICTSI noted.
The increase in volume was mainly due to new shipping lines and services, improvement in trade activities in most of the terminals in Asia, and the continuing ramp-up at ICTSI Iraq.
For the third quarter of this year, total consolidated throughput was 15% higher at 2.2 million TEUs compared with 1.9 million TEUs in 2015. It was the second consecutive quarter of double-digit volume growth at all three geographic segments, the port operator said.
Capital expenditures for the first nine months of 2016 amounted to $297.9 million. Excluding capitalized borrowing costs and expenses, capital expenditures amounted to $273 million, approximately 65% of the $420 million capital expenditure budget for full-year 2016.
ICTSI said the established budget is mainly allocated for the completion of the initial stage of new container terminals in Australia, Congo, and Iraq, and the continuing development of projects in Honduras and Mexico.
In addition, ICTSI invested $50.1 million in Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia. The company’s share to complete the initial phase of the project in 2016 is about $60 million.
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