Container volumes at International Container Terminal Services, Inc.’s (ICTSI) global facilities grew by 5% to more than 9.15m teu in 2017.
The operator attributed this growth to activity in emerging markets and improvements at facilities in Iraq, Mexico, the Democratic Republic of the Congo (DRC) and Australia.
The Mexican Manzanillo facility welcomed new services in 2017 which boosted throughput, while new terminals in Matadi, DRC and Melbourne, Australia also impacted on container volumes. Excluding the new terminals, ICTSI’s throughput grew by 4%.
ICTSI also highlighted positive performances in Honduras, Madagascar, China, Poland and Brazil in its annual report.
These operational results had a hand in ICTSI’s strong financial results as revenue from port operations rose by 10% to US$1.24bn and earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 10% to US$578m.
Net income grew by 1% to US$182.1m, which was partly attributed to the termination of the ICTS’s sub-concession agreement in Lagos, Nigeria, which earnt the company US$7.5m.
The operator cited a number of reasons net income was not larger, including higher interest and financing charges, higher depreciation and amortisation expenses and start-up costs at the Melbourne terminal.
Net income was also constricted by an increase in ICTSI’s share in the net loss at Sociedad Puerto Industrial Aguadulce (SPIA), a joint-venture with PSA in Buenaventura, Colombia. ICTSI’s share in the loss increased from US$5.6m in 2016 to US$36.7m in 2017.
Without the gain from Lagos and a charge of US$23.4m for the pre-termination of ICTSI’s concession at ICTSI Oregon, US, the company’s net income would have fallen by 14% in 2017.
ICTSI’s gross revenue grew by 10% to US$1.24bn, which the company attributed to the growth in volumes, new contracts with shipping lines, and the company’s new Matadi and Melbourne terminals.
Elsewhere cash operating expenses grew by 13% to US$475.9m. ICTSI also attributed this growth to its new facilities, as well as increases in fuel and power rates and the unfavourable exchange rate of the BRL appreciation in Suape, Brazil.
The company’s capital expenditure totalled US$174.8m, 27% less than 2016’s figure of US$240m, which was mainly used to fund the development of terminals in DRC, Iraq, Australia, Mexico, Honduras and the Philippines.
ICTSI has allocated US$380m for its 2018 capital expenditure budget, which it said will be used to increase the capacity of its Manila terminal in the Philippines and its facilities in Mexico and Iraq.
Other 2018 capital expenditure will include the development of its terminal in Honduras, investing in equipment and minor work at its newly acquired terminal in Papua New Guinea, and the completion of its new barge terminal project in Cavite City, Philippines.