International Container Terminal Services, Inc. (ICTSI) has reported unaudited consolidated financial results for the first half of 2015 that show revenue from port operations increasing by 8% to US$552m over the same period last year (US$510m).
In terms of volumes, the group handled 3.8m teu during the first six months of this year, a 9% increase on 2014. This was mainly due to continuing volume increases at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V. (OPC) in Puerto Cortez, Honduras.
New shipping line contracts and services at Pakistan International Container Terminal (PICT) in Karachi, along with increased demand at Subic Bay International Terminal Corp. (SBITC) in the Philippines added to the increase.
Consolidation at Yantai International Container Terminal (YICT) in China and the contribution of the company’s new, ICTSI Iraq terminal in Basra, Iraq, which began commercial operation in November 2014, also had a favorable impact. Excluding the volume generated by the new terminal in Iraq, organic volume growth was 7%.
The company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, have accounted for 77 % of the consolidated volume so far, an increase of 6% compared to the first-half of 2014.
Consolidated cash operating expenses in H1-2015 grew 2% to US$226.5 m over the same period in 2014, mainly driven by the contribution of the new terminal in Iraq and start-up costs of projects in Melbourne, Australia, Lekki, Nigeria, and Tuxpan, Mexico. Excluding these costs, total operating expenses would have increased by only 0.3%.
First half consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) increased 12% to US$237.4m (US$212.2m – 2014); excluding the impact of the new terminal and projects, this would have increased 11%.
Capital expenditures for H1 – 2015 amounted to US$136.7m, approximately 26% of the US$530m budget for the full year.