Container Terminal Services Inc. (ICTSI) of ports tycoon Enrique Razon on Tuesday said its net income dropped 13 percent in the first six months of the year on lower revenues and increased costs related to new projects and terminals.
In a statement, ICTSI said net income attributable to equity holders reached $87.3 million in January-June 2016, down 13 percent from the $100.4 million recorded during the same period a year ago.
“Net income attributable to equity holders declined mainly due to unfavorable volume mix, lower non-containerized and storage revenues, and lower capitalized borrowing costs and higher depreciation and amortization expenses related to Tecplata S.A.,” the company said.
Tecplata is the company’s new terminal in Buenos Aires, Argentina.
“Excluding the effect of Tecplata and new projects, consolidated net income attributable to equity holders would have increased by six percent,” ICTSI said.
Meanwhile, revenues from port operations reached $550.8 million, a slight decrease of 0.2 percent from the $552.1 million reported in the first six months of 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $257.5 million in the first half, 8 percent higher than the $237.4 million recorded for the same period last year.
ICTSI said the slight decrease in revenues was also due to the unfavorable translation impact of the depreciation of local currencies to the US dollar at certain terminals.
“The decline, however, was partly offset by tariff rate adjustments and new contracts with shipping lines and services at certain terminals, and the continuing ramp-up at ICTSI Iraq,” it said.
Diluted earnings per share for the period was 26 percent lower at $0.031 compared to $0.042 in the same period in 2015.
For the quarter ending June 30, revenue from port operations increased 11 percent from $256 million to $284.3 million and EBITDA surged 23 percent to $135.5 million from $109.8million.
Net income attributable to equity holders declined 3 percent from $46.4 million to $45.1 million in 2016 mainly due to higher depreciation, amortization and interest expense related to Tecplata.
ICTSI handled consolidated volume of 4.26 million twenty-foot equivalent units (TEUs) in the first six months of 2016, 10 percent more than the 3.89 million TEUs handled in the same period in 2015.
The increase in volume was mainly due to the continuing ramp-up at ICTSI Iraq; new shipping line customers and services in the company’s terminals in Guayaquil, Ecuador, Manzanillo, Mexico, Karachi, Pakistan and Jakarta, Indonesia; and improvement in trade activities at most of the terminals in the Asia region, the company said.
For the quarter ending June 30, 2016, total consolidated throughput was 16 percent higher at 2.2 million TEUs compared to 1.9 million TEUs in 2015.
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 four continents and continues to pursue container terminal opportunities around the world.