Flat income growth for ICTSI in H1

MANILA, Philippines - Listed International Container Terminal Services Inc. (ICTSI) reported flat income growth in the first semester of the year from a year ago amid one-time tax charges in operations overseas.

ICTSI said yesterday its net income amounted to $105.7 million from January to June nearly unchanged from the $105.6 million in the same period last year.

Net income attributable to equity holders reached $100.4 million as of end-June, down slightly from the $101.7 million last year.

Excluding the one-time gains and charges, it said its recurring net income would have risen by 20 percent in the first half of this year.

The company’s revenues from port operations grew eight percent to $552.1 million as of end-June from $510.3 million in the same period last year.

The port operator attributed the increase in revenues mainly to the volume growth at most of its terminals.

Consolidated volume handled by the port operator rose nine percent to 3.888 million twenty-foot equivalent units (TEUs) in the first six months of the year from 3.566 million TEUs in the same period in 2014.

The company’s eight terminals: Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, accounted for the bulk or 77 percent of the consolidated volume in the first semester of the year.

Consolidated cash operating expenses went up two percent to $226.5 million in the first half of the year from $221 million in the same period in 2014, driven by the contribution of the new terminal in Iraq as well as start-up costs of projects in Melbourne, Australia; Lekki, Nigeria; and Tuxpan, Mexico.

ICTSI’s capital expenditures for the first six months of this year amounted to $136.7 million, approximately 26 percent of the $530 million capital expenditure budget for full-year 2015.

The budget is intended for the completion of development in the company’s new container terminals in Mexico, Honduras and Iraq, capacity expansion of the terminal operation in Manila, and start of development of new terminals in Democratic Republic of Congo and Australia.

In addition, ICTSI invested $52.9 million in the development of Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia. Its share for 2015 to complete phase one of the project is approximately $140 million.