Port operator International Container Terminal Services, Inc. (ICTSI) reported a net income of US$57.584 million in the first quarter of 2017, 27.8% higher than the $45.054 million earned in the same quarter last year.
Gross revenues also increased, rising 12% to $297.2 million from the $266.5 million reported in January-March 2016. The port operator said higher revenues were mainly due to volume growth, tariff hikes at certain terminals, new contracts with shipping lines and services, and the contribution of the company’s new terminal in Matadi, Democratic Republic of Congo. Excluding the new terminal in Congo, consolidated gross revenues grew by 8%.
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, increased from $2.1 million in the first quarter of 2016 to $7.4 million for the same period in 2017 as the company started full commercial operations.
ICTSI handled a consolidated volume of 2.273 million twenty-foot equivalent units (TEUs) in the first quarter of 2017, 11% more than the 2.054 million TEUs handled year-over-year. The increase in volume was attributed to continuous improvement in global trade activities, particularly in emerging markets, continuing ramp-up at ICTSI Iraq, and the contribution of Congo. Without Congo, consolidated volume increased by 10%.
Capital expenditure in the first quarter of 2017 amounted to $33 million, or about 14% of the $240 million capital expenditure budget for the full year 2017.
The established budget is mainly allocated for the completion of the initial stage of development of the company’s greenfield projects in Congo and Iraq; the second-stage development of the project in Australia; continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion at its terminal operations in Manila.
In addition, ICTSI invested $9.1 million in SPIA. It has allocated some $25 million for its share in 2017 in the completion of the initial phase of its joint-venture container terminal project with PSA.
ICTSI develops, manages, and operates container terminals globally in the range of 50,000 to 2.5 million TEUs per year. It has an experience record that spans four continents and continues to pursue container terminal opportunities around the world.
