ICTSI performs well in third quarter results

ICTSI performs well in third quarter results
Cranes arriving at ICTSI's Melbourne terminal

International Container Terminal Services, Inc. (ICTSI) reported strong financial growth in the first nine months of the year while throughput at its terminals grew by 6%.

Revenue soared by 10% compared to the first nine months of 2016, rising to US$918.3m, while containers handled reached 6.8 m teu.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) also performed well, growing by 11% to US$434.9m.

ICTSI attributed this growth to a number of factors: a continued ramp-up at the new Matadi terminal in the Democratic Republic of the Congo (DCR), strong operating income contributions from terminals in Iraq, Mexico, Honduras, Brazil and Madagascar, and the one-time gain on the termination of the sub-concession agreement in Lagos, Nigeria.

The new terminal in Matadi and another in Melbourne, Australia, were associated with the increase in throughput, however excluding these terminals consolidated volume would have still increased by around 5%.

Net income was up 5% to US$141.9m, although without the gain from Lagos this would have been flat.

Net income was hindered by a number of factors including start-up costs at the Melbourne terminal and an increase in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA).

The net loss from this joint venture with PSA for a container terminal in Buenaventura, Colombia, rose from US$4.7m to US$25.6m over the first three quarters of 2017.

Consolidated cash operating expenses rose by 11% to US$343.3m, mainly due to operations in Matadi and Melbourne and higher throughput and increase in fuel prices and power rates at certain terminals.

Capital expenditure for the three quarters amounted to US$113.5m, approximately 47% of the US$240m budget for the year.

Results for the third quarter alone were also positive, with revenue growing by 11% to US284.2m, EBITDA growing 9% to US$145.1m, although net income fell by 16% to US$45.7m, mainly due to costs associated to the new terminals, the SPIA loss, and higher interest and financing charges.

Throughput for the quarter rose by 6% to 2.3m teu. Excluding the new terminals the increase would have been around 3%.