RP’s top port operators post higher revenues

Despite the global trade slowdown, the financial health of the country’s top port operators remained resilient as revenues from their operations increased during the first nine months of 2001.

Records show that both International Container Terminal Services Inc. (ICTSI) and Asian Terminal Inc. (ATI) posted higher gross revenues during the period, although their bottom line earnings were mixed.

ICTSI, the operator of the Manila International Container Terminal (MICT), reported a seven-percent gain in revenues to P3.23 billion as its net profit soared to P3.28 billon from only P59.44 million the previous year largely due to the one-time gain from the sale of its foreign terminals.

Last June, ICTSI sold its 30-million founder shares in ICTSI International Holdings Corp. (IIHC) to the Hong Kong-based Hutchison International Port Holdings (HHC) for which ICTSI received $70.3 million.

IIHC operates eight container terminals in Argentina, Mexico and Saudi Arabia, Pakistan, Tanzania and Thailand.

At the same time, wholly-owned subsidiary International Container Terminal Holdings Inc. (ICTHI) sold to HPH its 900,000 shares in Langer Holdings Ltd. which owns the Ensenada Cruiseport Village, a Mexican cruise terminal, gaining another $300 million for ICTSI.

In addition, ICTSI took in $60 million as gain from the put and call option granted by ICTHI to HPH over ICTSI’s 43.2 million preference B shares in IIHC.

With the sale, ICTSI will concentrate on the operations of its flagship port, the MICT, along with the newly-acquired 30-year concession in the Port of Suape in northern Brazil.

Last year, ICTSI eaned P31.3 million, a huge improvement from a P1.3-billion loss in 1999, when the company struggled with higher amortization of foreign exchange losses and the accretion of the put premium on its $140-million convertible bond issue.

For ATI, which operates four international seaports led by the Manila South Harbor, its gross revenues were 9.2 percent higher at P2.51 billon although net income dropped 7.1 percent due to the negative effects of the currency depreciation and higher interest rates.

ATI said it expects an increase in trade volume for the balance of the year as it continues to improve service standards in its business units through a planned P1-billion modernization and expansion of the South Harbor and its other facilities this year.

During the past year, ATI reported a 29-percent jump in earnings to P541 million, on higher revenues of P2.9 billion.