ICTSI earnings rise 17% to $70.3 M in H1

Manila, Philippines -  International Container Terminal Services Inc. (ICTSI) said yesterday its first half net earnings rose 17 percent to $70.3 million, mainly driven by the modest growth in volume and revenues in all three geographic segments and lower financing charges.

Gross revenues from port operations amounted to $345 million, up eight percent from $319.1 million a year earlier owing to higher storage revenues and ancillary services, favorable volume mix and tariff increases at key terminals.

ICTSI handled consolidated volume of 2.7 million twenty-foot equivalent units (TEUs) in the first six months of the year, nine percent more than the previous period’s level of 2.48 million.

The growth was attributed to the continued growth in international trade where the group’s terminals are located, new shipping line routes and customers, continuous containerization of break bulk cargoes, and the full period contribution of new container terminals in Portland, Oregon and Rijeka, Croatia.

Excluding the volume from the two latest container terminal acquisitions, organic revenue growth was at six percent. Revenue contribution from the group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 84 percent of aggregate revenues, climbed six percent to $290.4 million.

EBTIDA (earnings before interest, taxes, depreciation and amortization) rose four percent to $149.1 million.

Earnings per share, however, inched lower to $0.030 from $0.031 due to the effect of the distributions on the additional $150 million and the initial $200 million subordinated perpetual capital securities issued in January this year and May 2011, respectively.

Consolidated cash operating expenses increased 11 percent to $149.1 million owing to higher volume-related expenses (i.e. fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher concession fees in the company’s operations in Recife, Brazil, and the consolidation of full period expenses of the new terminals.

Excluding the cash operating expenses of the new terminals, total operating expenses would have risen by only seven percent.

Total financing charges and other expenses, on the other hand, declined 32 percent to $16.2 million. This was primarily a result of higher capitalized borrowing cost as the company continued to expand existing terminals in Manila and Ecuador as well as develop new projects in Mexico and Argentina.

The company spent $191 million in the first half, mainly going to the construction of a new berth, additional yard space and acquisition of major cargo handling equipment.

ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000-2.5 million TEU/year range.