International Container Terminal Services Inc. (ICTSI) on Tuesday reported $136.2 million in net income as of the end of the third quarter, up slightly from a year earlier, on the back of increased revenues and throughput.
The January-September net was up 0.3 percent from the $135.7 million recorded a year earlier, the firm said in a statement also noting lower one-time gains for the period.
It said unaudited financial results showed revenues from port operations hitting $792.0 million, up 2 percent from $779.2 million last year, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $339.5 million, 4 percent higher than the $326.1 million generated in the first nine months of 2014.
It noted non-recurring gains of $2.2 million for the period and compared this to $85.6 million seen a year earlier.
“Excluding these non-recurring gains and charges, recurring net income surged nine percent in the first nine months of 2015,” ICTSI said.
Volumes handled during the period totaled 5,768,248 twenty-foot equivalent units (TEUs), 7 percent more than the 5,410,224 TEUs handled in the same period in 2014.
The increase was said to be due to a continuing ramp-up at Contecon Manzanillo S.A. in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V. in Puerto Cortez, Honduras; new shipping line contracts and services at Pakistan International Container Terminal in Karachi; increased demand for services at Subic Bay International Terminal Corp. (SBITC) in Subic Bay,; the favorable impact of consolidation at Yantai International Container Terminal in China; and the contribution of a new terminal, ICTSI Iraq, in Basra.
ICTSI’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77 percent of consolidated volume, grew 5 percent compared to the same period last year.
The increase in gross revenues from port operations, meanwhile, was mainly due to volume growth at most of its terminals: the eight key terminals, which accounted for 82 percent of consolidated revenues, grew 2 percent.
Capital expenditures for the first nine months of 2015 amounted to $254.6 million, approximately 48 percent of the US$530 million capital expenditure budget for the full year 2015, ICTSI said.
“Given the under spending trend recorded in the first three quarters of 2015, the company has reduced its capital expenditure budget and its investment budget in SPIA (Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd.in Buenaventura, Colombia) for the full year 2015 to $350 million and $97 million, respectively,” ICTSI said.