ICTSI bottom line drops 12% to $51 million

MANILA, Philippines — Net earnings of port operator International Container Terminal Services Inc. (ICTSI) declined by 12 percent to $50.9 million in the first quarter from $57.6 million a year ago due to the drag from new terminals.

Net income attributable to equity holders also went down by 15 percent to $44.1 million in the first three months from $51.7 million a year ago.

ICTSI attributed the decline to the impact of new terminals in its operations.

While net earnings were down year-on-year, ICTSI’s revenue from port operations grew by nine percent to $325.4 million in the first quarter from $297.2 million a year ago.

“The increase in revenue was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, increased storage and ancillary services, and the contribution from the company’s new terminals in Australia and Papua New Guinea,” ICTSI said.

ICTSI handled consolidated volume of 2.33 million twenty-foot equivalent units (TEUs) as of end-March this year, two percent more than the 2.27 million TEUs handled in the same period last year.

The higher volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq, and ICTSI Democratic Republic of Congo, and contributions from Victoria International Container Terminal and South Pacific International Container Terminal Limited, the company’s new terminals in Melbourne, Australia and Lae, Papua New Guinea, respectively.