The Market Monitor Minding the Nation's Business
By Riza Lozada
The International Container Terminal Services Inc. (ICTSI) will infuse more capital to two subsidiaries through the conversion of the deposit for future stock subscriptions (DFFS) worth $512,548 for subscription of its subsidiary ICTSI Subic Inc. (ISI) and DFFS totaling to $1,537,644 to be converted to advances to ISI, reported to the Philippines Stock Exchange (PSE) the
The DFFS for conversion into subscription for ICTSI Warehousing, Inc. (IWI) will be P170 million and the DFFS for conversion into advances for IWI at P510 million.The ICTSI board on December 23 approved the conversion of the DFFS into equity and advances for the subsidiaries ISI and IWI. The disclosure reported also significant appropriation of a portion of ICTSI unappropriated retained earnings of $40 million for additional working capital requirements of its ongoing foreign expansion projects in 2016.ICTSI said as of last September 30, the total number of of its issued and outstanding common shares is 2.03 billion, net of 10.5 million treasury shares.
The total number of issued and outstanding Preferred A shares and Preferred B shares were 3.8 million and 700 million , respectively.
ICTSI has a total market capitalization of P152.7 billion or approximately $3.3 billion at an exchange rate of P46.74 to $1.Traffic volume handled reached 5,768,248 (TEUs) in the nine months of 2015. Total interest-bearing debt was $1,053.3 million; debt-to-equity ratio (interest-bearing debt/shareholder´s equity) for the period is 0.55 times.
Long term loans comprise 99.7 percent of total loans. Of the $1,049.7 million long term loans, 3 percent will be due within 2015, 5 percent will be due in 2016, 1 percent will be due in 2017 and the balance will be due 2018 onwards.
Of the $1.05 billion total long-term loans as of September 30, 2015, 90 percent are with fixed interest rates and 10 percent have floating interest rates.
Of the $1.05 billion total debt as of September 30, 95 percent are denominated in US dollars and the rest in China renminbi (RMB), Pakistani rupee (PKR), euro and Brazilian reais (BRL). The company’s weighted average cost of borrowing is five percent per annum post corporate tax.The ICTSI’s port operations in the Americas, EMEA (Europe, Middle East, and Africa), and Asia registered total volume contributions for the first nine months of 2015 accounting for 36 percent, 12 percent and 52 percent respectively.
The revenue contributions of the port operations of Americas, EMEA and Asia recorded share of 37 percent, 9 percent and 54 percent respectively for the given period.Capital expenditures for the first nine months of 2015 amounted to $254.6 million, approximately 48 percent of the $530 million capital expenditure budget for the full year 2015.
The established budget is mainly allocated for the completion of development at the Company’s new container terminals in Mexico, Honduras and Iraq, capacity expansion in its terminal operation in Manila, and to start the development of the new terminals in Democratic Republic of Congo and Australia.