ICTSI net profit up 17% in Q3

Port operator International Container Terminal Services Inc. (ICTSI) posted a net profit of P751 million in the third quarter this year, up 17 percent from P643 million due to the addition of new ports.

Consolidated gross revenues amounted to P5.68 billion, 35 percent higher than the previous level’s P4.21 billion. Earnings before interest, taxes, depreciation and amortization (EBITDA), on the other hand, reached P2.55 billion or an increase of 51 percent to P2.17 billion.

During the period under review, ICTSI booked an associated net unrealized foreign exchange gain of P64 million and a foreign exchange loss of P43 million due to the adoption this year of the IFRIC Interpretation 12-Accounting for Service Concession Agreements.

“Despite a worsening global economic climate, ICTSI has delivered solid results for the quarter. We remain cautious concerning the outlook for the global economy and world trade and are taking steps to position ourselves accordingly,” said ICTSI chairman and president Enrique Razon.

ICTSI handled consolidated volume of 1.02 million twenty-foot equivalent units (TEUs) in the third quarter, bringing year to date volume to 2.78 million TEUs.

Domestic operations accounted for 530,463 TEUs or 52 percent of consolidated volume for the quarter. Volume from domestic operations grew 28 percent in the third quarter of 2008 mainly due to a 13 percent volume increase at MICT (Manila International Container Terminal), the additional volume from the company’s new port operations in Misamis Oriental and the consolidation of the volume of South Cotabato Integrated Port Services Inc. its port in Gen. Santos City, South Cotabato.

Foreign container volume, on the other hand, grew 23 percent over the same period last year, driven principally by the addition of the company’s Ecuador, Syria and Georgia port operations, and exceptionally strong growth at the company’s operations in Brazil, Madagascar and China.

Combined revenues from new port operations in Ecuador, Georgia, Syria, and Misamis Oriental, Philippines, on the other hand, accounted for 36 percent of total revenues.

Consolidated financing costs and bank charges were flat during the third quarter due to lower borrowing cost despite the higher debt levels.