LISTED port operator International Container Terminal Services, Inc. (ICTSI) on Tuesday said its net income grew 4 percent in the first nine months of the year from a year earlier on higher shipment volumes and lower borrowing costs for its new terminals and projects.
In a disclosure to the Philippine Stock Exchange, ICTSI said net income reached $141.9 million (P6.9 billion) from January-September 2016, up from the $136.2 million earned in the first three quarters of the previous year.
Revenues from port operations rose 5 percent from a year ago to $835 million while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 15 percent to $390.3 million.
“Net income attributable to equity holders increased primarily due to the volume and revenue growth tapered by higher depreciation and amortization expenses and lower capitalized borrowing costs related to Tecplata S.A., the company’s new terminal in Buenos Aires, Argentina, and higher interest expense from a higher average loan balance,” the company owned by businessman Enrique Razon Jr. said.
Net income attributable to equity holders rose 53 percent to $54.6 million in the first nine months. Excluding the effect of new terminals and projects, consolidated net income attributable to equity holders would have increased by 28 percent, ICTSI said.
Diluted earnings per share for the period fell 6 percent to $0.052 from $0.055 in 2015.
For the quarter ending September 30, revenue from port operations increased 18 percent to $284.2 million while EBITDA was 30 percent higher at $132.9 million.
ICTSI handled consolidated volume of 6,435,192 twenty-foot equivalent units (TEUs) in the first nine months of this year, 12 percent more than in the same period in 2015. All three of its geographic segments in Asia, EMEA [Europe, the Middle East and Africa] and the Americas continued to post positive volume growth for the third consecutive quarter.
It said the increase in volume was mainly due to new shipping lines and services, improvement in trade activities in most of the terminals in the Asia region, and the continuing ramp-up at ICTSI Iraq.
For the quarter ending September 30, total consolidated throughput was 15 percent higher at 2,170,559 TEUs, the second consecutive quarter of double-digit volume growth at all of the company’s three geographic segments.
Gross revenues from port operations for the first nine months increased five percent to $835 million, mainly due to volume growth at most of its terminals; tariff rate adjustments and new contracts with shipping lines and services at certain terminals; and the ICTSI Iraq ramp-up.
ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.