Recurring net income attributable to equity holders increased 15% after adjusting the previous year’s net income to US$124.4m from the one-time net gain of US$6.1m from the sale of ICTSI’s 16.79% ownership stake in Portek International and a one-time equity tax charge imposed by the Colombian tax authorities on all legal entities and individuals in Colombia.
During the period ICTSI handled consolidated volumes of more than 5.62m teu, up 8% on the previous year’s 5.23m teu.
The increase in volume was mainly due to the growth in international and domestic trade, new shipping line customers7 and routes, continuous containerisation of break bulk cargoes, the full period contribution of the Company’s new ports in Portland, Oregon, USA and Rijeka, Croatia, and the consolidation of the volume generated by the Company’s new terminal operations in Jakarta, Indonesia and Karachi, Pakistan. Excluding the volume from the four recent port acquisitions, organic volume growth was at four percent.
Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 73% of the Group’s consolidated volume for 2012, increased 6% from 3,87m to 4,11m teu.
The 10% increase in revenues was due not only to volume growth but also to higher storage revenues and ancillary services, favorable volume mix and tariff rate increases “in certain key terminals.”Revenue from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 83% of the Group’s consolidated revenues, increased 7% from US$565.6m to US$602.8m.
Consolidated cash operating expenses in 2012 grew 10% to US$319m mainly driven by higher volume-related expenses (i.e. on-call labour, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher concession fees in the Company’s Recife operations in Brazil, higher business development expenses, the full period consolidation of the expenses of the terminals in Portland, Oregon and Rijeka, Croatia and the inclusion of the expenses of the new terminals in Jakarta, Indonesia, and Karachi, Pakistan.
Excluding the cash operating expenses of the new terminals, total cash operating expenses would have increased by only six percent.
ICTSI’s capital expenditure in 2012 amounted to US$465.6m against a budget of US$550m and was mainly attributed to the construction of a new berth, additional yard space and acquisition of major cargo handling equipment in the Manila container terminal, capacity expansions in its operations in Ecuador and Brazil, and development of new container terminals in Argentina and Mexico.
The capital expenditure budget for 2013 is approximately US$550m mainly allocated for the completion of terminal development projects in Argentina and Mexico and the ramp-up of construction activities in Colombia and Davao, southern Philippines.