PORT operator International Container Terminal Services, Inc. (ICTSI) reported on Tuesday a 68-percent decline in net income attributable to equity holders to $58.5 million in 2015 from $182.0 million earned in 2014.
In a disclosure to the Philippine Stock Exchange, ICTSI said non-cash, one-time charges pulled down its net income.
But, the firm added, excluding the effect of one-time adjustments to carrying value of certain subsidiaries and nonrecurring charges, recurring net income would have increased one percent to US$174.7 million from US$172.6 million in 2014.
Revenues from port operations just edged higher by one percent to $1.051 billion from $1.061 billion the year earlier.
In 2015, the company recognized non-recurring charges totaling $116.2 million, composed mainly of impairment charges on the concession rights assets of Tecplata S.A.
(TECPLATA), the company’s terminal in Buenos Aires, Argentina, amounting to $88.0 million, due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina and the goodwill of subsidiaries PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, Indonesia totaling $26.6 million as a result of lower projected cash flows on its updated business plan than originally expected.
In addition, ICTSI recognized non-recurring gains and charges, such as the $0.3-million gain on the sale of the terminal in Naha, Japan, the recognition of $1.3 million wealth tax charge on its equity in its project in Aguadulce, Colombia, and $0.6 million super tax charge at the terminal in Karachi, Pakistan.
In 2014, the Company also gained on the sale of a non-operating subsidiary in Cebu, Philippines ($13.2 million), the termination of management contract in Kattupalli, India ($1.9 million), the net settlement of the insurance claims in Guayaquil, Ecuador and Gdynia, Poland ($0.6 million), the sale of Yantai Rising Dragon International Container Terminal as part of the consolidation of the terminal operations at the Port of Yantai in Yantai, China ($31.8 million), and the write-down of intangibles at TECPLATA ($38.1 million).