International Container Terminal Services, Inc. (ICTSI) enjoyed a strong first quarter of 2017 with double digit growth across both container throughput and financial results.
Volumes rose by 11% to 2,272,647 teu, largely due to growth in emerging markets with contributions from the continuing ramp-up at ICTSI Iraq, and ICTSI Democratic Republic of Congo (IDRC), the company’s new terminal in Matadi, DRC.
Gross revenues from port operations increased by 2% to US$297.2m, mainly due to volume growth, tariff rate adjustments at certain terminals and new contracts with shipping lines and services.
Excluding the new terminal in DRC, consolidated container volumes increased by 10% and consolidated gross revenues increased by 8%.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) also rose by 21% to US$147m and net income attributable to equity holders was up by 23% to US$51.7m.
The improvements were aided by strong operating income but tapered by higher depreciation charges, higher interest and financing charges, and an increase in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA).
The loss at SPIA, which is a joint venture container terminal project with PSA International in Buenaventura, Colombia, increased from US$2.1m in the first quarter of 2016 to US$7.4m as the project started full commercial operations.
Capital expenditure in the first quarter of 2017 amounted to US$33m, approximately 14% of the US240m capital expenditure budget for the full calendar year.
The established budget is mainly allocated for the completion of the initial stage development of ICTSI’s greenfield projects in DRC and Iraq, the second stage development of a project in Australia, the continuing development of the company’s container terminals in Mexico and Honduras and capacity expansion in its Manila terminal operations.
In addition, ICTSI invested US$9.1m in SPIA out of approximately US$25.0 million allocated for its share in 2017 to complete the initial phase of the container terminal project.