INTERNATIONAL Container Terminal Services, Inc (ICTSI) reported a 49% increase in gross revenues from port operations in the first half of the year to P9.54 billion from P6.40 billion in the same period last year, thanks to the strong performance of its local and foreign subsidiaries.
In a recent report to the Philippine Stock Exchange, ICTSI said earnings growth was driven mainly by strong volumes in Manila, the southern city of Davao and in Brazil, Madagascar, China, Ecuador and Georgia.
Foreign operations accounted for 54.6% of consolidated revenues in the first half of 2008 compared with 43.8% in the same period last year primarily due to new foreign terminals added to the portfolio.
In the second quarter, consolidated net income reached P784 million, a 6% improvement year-on-year from P736 million. Consolidated revenue amounted to P5.04 billion, or an increase of 53% from P3.29 billion, despite what ICTSI called a “general unease” over the impact of the US economic slowdown on international trade and containerized cargo traffic.
Consolidated net income grew 11.3% to P1.495 billion for the first half of the year from P1.343 billion for the same period last year. The adoption of new accounting procedures, however, dragged down consolidated net income by P111.9 million. Were it not for the new procedure, consolidated net income would have grown 54% to P1.607 billion from P1.045 billion in the same period last year, ICTSI said.
Consolidated volume handled for the first six months of the year grew 36.6% to 1.755 billion twenty-foot equivalent units (TEUs) from 1.284 billion last year. The substantial increase was attributed to new terminal operations contributing 321,949 TEUs while a double-digit volume growth in major terminals like the Manila International Container Terminal (15.9%) and Madagascar (44.2%) boosted volume growth to 36.6%.
Foreign subsidiaries now jointly accounted for 49.5% of consolidated volume in the first half of 2008 compared with 41% in the same period last year. January-to-June gross revenues from foreign operations accounted for 54.6% of the consolidated gross revenues from 43.8% in the same period last year.
MICT handled 744,875 TEUs in the first half of 2008, accounting for 42.4% of the total consolidated volume of ICTSI. MICT’s volume rose 15.9% over the same period last year.
Gross revenue at the Manila terminal increased at a higher rate than volume at 21.1%, primarily due to non-container and storage revenues, stevedoring tariff increase that became effective on April 1, 2008, and the peso depreciation against the US dollar.
Consolidated expenses during the period amounted to P7.20 billion, 76.7% higher than in the same period last year of P4.07 billion due to the addition of the new subsidiaries.
