By James A. Loyola
International Container Terminal Services, Inc. (ICTSI) reported a 42 percent surge in unaudited consolidated attributable net income to US$128.5 million in the first half of 2019 from the US$90.2 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said revenue from port operations improved 14 percent to US$751.8 million from the US$661.8 million reported for the first six months of 2018.
ICTSI said growth in profits is mainly due to improved operating income contribution from the terminals in Iraq, Australia, Democratic Republic of Congo and Subic in the Philippines; the continuing ramp-up at the new terminals in Papua New Guinea; and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.
The increase was partially tapered by a non-recurring gain from the interest rate swap related to the pre-payment of the project finance loan at its terminal operations in Manzanillo, Mexico in 2018.
Excluding the non-recurring gain in 2018, consolidated net income attributable to equity holders would have increased by 47 percent in 2019.
“ICTSI’s performance in the first half of 2019 has been very positive. The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives,” said ICTSI Chairman Enrique K. Razon, Jr.
He noted that, “our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely. ICTSI is a robust business, strongly placed for the second half and the Board remains confident of the future.”
ICTSI handled consolidated volume of 5,041,916 twenty-foot equivalent units (TEUs) in the first six months of 2019, seven percent more than the 4,714,255 TEUs handled in the same period in 2018.
The increase in volume was mainly due to continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico; improvement in trade activities in Subic, Philippines Matadi, Democratic Republic of Congo and Rijeka, Croatia; new shipping lines and services in Gdynia, Poland; and the new terminals in Lae and Motukea in Papua New Guinea.(