ICTSI Q1 net income grows 23% to $51.7M

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LISTED port operator International Container Terminal Services Inc. (ICTSI) reported a 23-percent increase in first-quarter net income to $51.7 million from $42.2 million a year earlier on the back of volume growth and new contracts.

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Gross revenues from port operations increased 12 percent to $297.2 million, mainly due to volume growth, traffic rate adjustments at certain terminals, new contracts with shipping lines and services, and contribution from the company’s new terminal in Matadi, Congo.

ICTSI said in a statement it handled a consolidated volume of 2.27 million twenty-foot-equivalent units (TEUs) of cargo in the first quarter, 11 percent higher than that of the same period in 2016.

However, consolidated cash operating expenses were 2 percent higher at $103.9 million, due mainly to the increase in variable manpower costs and higher fuel consumption; higher fuel prices and power rate adjustments at certain terminals; the unfavorable translation impact of the Brazilian Real appreciation at Suape, Brazil; and cost contribution of the new terminals in Matadi, DRC (Democratic Republic of Congo) and Melbourne, Australia.

“The increase was tapered by the additional benefits of the on-going group-wide cost optimization initiatives and the favorable translation impact of Philippine Peso and Mexican Peso expenses at the various terminals in the Philippines and in Manzanillo, Mexico, respectively,” it added.

The company’s capital expenditure budget for 2017 is $240 million, mainly allocated for the completion of the initial stage development of its greenfield projects in DRC and Iraq; the second stage development of its project in Australia; the continuing development of the its container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.

ICTSI also invested $9.1 million in Sociedad Puerto Industrial de Aguadulce in Buenaventura, Colombia. Approximately $25 million was allocated for its share in 2017 to complete the initial phase of its joint venture container terminal project with PSA International.

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