International Container Terminal Services, Inc. (ICTSI) registered record volumes and financial results in its half-year figures, citing the performances of new terminals in Australia and Papua New Guinea.
The new terminals in Lae and Motukea in Papua New Guinea and Melbourne, Australia contributed toward the 4% year-on-year throughput growth, which rose to 4.71m teu. Growth in emerging markets was also a factor in the increase.
Gross revenues increased 10% to US$661.8m with the Filipino operator attributing the rise to volume growth, new contracts with shipping lines and an increase in non-containerised cargoes, storage and ancillary services. Without the new terminals, consolidated gross revenues increased by 6%.
However net income dropped 6% to US$97.7 m due to start-up costs relating to the new facilities. The termination of a sub-concession agreement in Nigeria and ICTSI’s share in the net loss at Sociedad Puerto Industrial Aguadulce (SPIA), the joint venture with PSA in Colombia, also impacted on net income, as did a non-reucrring gain from the pre-termination of of interest rate swap related to the pre-payment of the project finance loan at its terminal operations in Manzanillo, Mexico.
Excluding the non-recurring gains, consolidated net income attributable to equity holders would have decreased marginally by one percent in 2018.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for increased 3% to US$299.5m due to the strong revenue growth and the positive contribution of the new terminals. EBITDA margin fell from 47% to 45%.
Consolidated cash operating expenses rose by 20% to US$266m, again largely due to start-up costs in Papua New Guinea and Australia. Other factors were higher fuel consumption and increased yard rental resulting from greater volumes, increase in fuel prices and maintenance fees, and the unfavourable exchange rates for the Mexican peso.
The rise in expenses was tapered by favourable exchange rates for the Phillipine peso and the Brazilian real.
Capital expenditure excluding borrowing costs totalled US$134.3m, around 35% of the full year budget. The budget is mainly allocated for the operational capacity expansion in Manila, Mexico and Iraq, terminal development and rehabilitation in Honduras, the addition of equipment and minor infrastructure works in Papua New Guinea, and the completion of its new barge terminal project in Cavite City, Philippines.