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ICTSI profit hits $149M as global operations grow

Global port operator International Container Terminal Services Inc. (ICTSI) posted a net income of $149.3 million, up five percent from $141.9 million a year ago due to the continuing ramp-up at the new terminal in Matadi, Democratic Republic of Congo (DRC); strong operating income contribution from the terminals in Iraq, Mexico, Honduras, Brazil and Madagascar; and the one-time gain on the termination of the sub-concession agreement in Lagos, Nigeria.

Unaudited consolidated financial results for the first nine months of 2017 showed revenue from port operations of $918.3 million, an increase of 10 percent over the $835 million a year ago.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $434.9 million, 11 percent higher than the $390.3 million generated in the first three quarters of 2016.

The increase in net income was tapered by higher interest and financing charges, higher depreciation and amortization, start-up costs at the Company’s terminal in Melbourne Australia and increase in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, which increased from $4.7 million in the first three quarters of 2016 to $25.6 million for the same period in 2017 as the company started full commercial operations at the beginning of the year, ICTSI said in a statement.

Excluding the one-time gain on the termination of the sub-concession agreement in Nigeria, consolidated net income attributable to equity holders would have been flat in the first nine months of 2017, it added.

For the third quarter, revenue from port operations increased 11 percent from $284.2 million to $314.6 million; EBITDA was nine percent higher at $145.1 million from $132.9 million; and net income attributable to equity holders was down 16 percent from $54.6 million in 2016 to $45.7 million in 2017 mainly due to higher interest and financing charges, higher depreciation and amortization, start-up costs at the company’s terminal in Melbourne, Australia which started commercial operations in the second quarter of 2017 and increase in the Company’s share in the net loss at its joint venture container terminal project in Buenaventura, Colombia.

ICTSI handled consolidated volume of 6,836,611 twenty-foot equivalent units (TEUs) in the first nine months, six percent more than the 6,435,192 TEUs handled in the same period in 2016.

The increase in volume was primarily due to continuing improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and contribution of new terminals in Matadi, DRC and Melbourne, Australia.
Excluding the new terminals, consolidated volume would have increased by five percent.

In the recent quarter, total consolidated throughput was six percent higher at 2,291,207 TEUs compared to 2,170,559 TEUs in 2016.

Excluding the new terminals, consolidated volume would have increased by three percent in the third quarter of 2017.

Gross revenues from port operations for the first nine months of 2017 increased 10 percent to $918.3 million from the $835 million reported in the same period in 2016.

The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, and the contribution from the Company’s new terminals in Matadi, DRC and Melbourne, Australia.  Excluding the new terminal in DRC and Australia, consolidated gross revenues would have increased by six percent.

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