ICTSI profit down 13% to P4.1 billion in first half of 2015

Ports operator International Container Terminal Services Inc. (ICTSI) reported a lower net income of $87.3 million (P4.103 billion), down 13 percent against the $100.4 million (P4.7 billion) earned in the first half of 2015. 
  

It also reported a revenue from port operations of $550.8 million (P25.8 billion), which was 0.2 percent lower than the $552.1 million (P25.95 billion) a year ago.

Earnings before interest, taxes, depreciation and amortization (Ebitda) of $257.5 million (P12.1 billion), which was 8 percent higher than the $237.4 million (P11.16) for the same period last year.

Net income attributable to equity holders declined mainly due to unfavorable volume mix, lower non-containerized and storage revenues, and lower capitalized borrowing costs and higher depreciation and amortization expenses related to Tecplata S.A. (“Tecplata”), the company’s new terminal in Buenos Aires, Argentina.

Excluding the effect of Tecplata and new projects, consolidated net income attributable to equity holders would have increased by six percent.

Diluted earnings per share for the period was 26 percent lower at $0.031 compared to $0.042 in the same period in 2015.

For the quarter ending June 30, 2016, revenue from port operations increased 11 percent from $256.0 million to$284.3 million and Ebitda surged 23 percent to $135.5 million from $109.8 million.

Net income attributable to equity holders declined three percent from $46.4 million to $45.1 million in 2016 mainly due to higher depreciation, amortization and interest expense related to Tecplata.

Diluted earnings per share for the quarter decreased 11 percent from $0.019 in 2015 to $0.017 in 2016.

ICTSI handled consolidated volume of 4,264,633 twenty-foot equivalent units (TEUs) in the first six months of 2016, 10 percent more than the 3,888,130 TEUs handled in the same period in 2015.

The increase in volume was mainly due to the continuing ramp-up at ICTSI Iraq; new shipping line customers and services in the company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, Karachi, Pakistan and Indonesia; and improvement in trade activities at most of the terminals in the Asia region.

For the quarter ending June 30, 2016, total consolidated throughput was 16 percent higher at 2,210,994 TEUs compared to 1,905,357 TEUs in 2015.

Gross revenues from port operations for the first half of 2016 was slightly lower at $550.8 million compared to the $552.1 million reported in the same period in 2015.

The 0.2 percent decrease in revenues was mainly due to unfavorable container volume mix, lower non-containerized and storage revenues, and unfavorable translation impact of the depreciation of local currencies to the US dollar at certain terminals.

The decline, however, was partly offset by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq.

Excluding the translation impact of local currency depreciation to the US dollar, particularly the 24-percent depreciation of the Brazilian Reais (BRL) at TSSA; the 19-percent depreciation of the Mexican Peso (MXN) at Contecon Manzanillo S.A. (“CMSA”); and the 5-percent depreciation of the Philippines peso at the various Philippine terminals, consolidated gross revenues would have increased by 3 percent.

For the second quarter of 2016, gross revenues increased 11 percent from $256.0 million to $284.3 million. The strong revenue growth in the second quarter was driven by the continuing ramp-up at ICTSI Iraq, tariff rate adjustments and new contracts with shipping lines and services at certain terminals.