ICTSI’s volumes rise in half year results

ICTSI’s volumes rise in half year results
ICTSI's Manila terminal

International Container Terminal Services Inc. (ICTSI)’s revenue from port operations for the first half of 2019 has risen 14% year-on-year to US$751.8m as throughput exceeded the 5m teu mark.

Volumes rose 7% from 4.7m teu in the first half of 2018 to 5.04m teu with the increase mainly attributed to continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico.

An improvement in trade activities in Subic in the Philippines, Matadi in the Democratic Republic of Congo and Rijeka, Croatia as well as new shipping lines and services in Poland’s Gdynia helped boost volumes.

ICTSI’s new terminals in Lae and Motukea in Papua New Guinea also contributed to the growth in throughput and revenue for the first half of the year.

Enrique K. Razon Jr., president and chairman of ICTSI, said: “The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver our strategic objectives.”

The company’s consolidated Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) was 19% higher than the US$356.1m generated in the first half of 2018.

This was mainly due to strong revenues partially tapered by the higher operating expenses driven by volume growth and, consequently, the EBITDA margin increased to 56% from 54% in the same period last year.

Capital expenditures excluding capitalised borrowing costs amounted to US$120.5m, approximately 32% of the US$380m capital expenditures budget for the full year 2019.

The estimated capital expenditure budget will be utilised mainly for the ongoing expansion projects in Manila, Mexico and Iraq as well as equipment acquisitions and upgrades, and for maintenance requirements.

Razon Jr. said: “Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely.

“ICTSI is a robust business, strongly placed for the second half and the board remains confident of the future.”