International Container Terminal Services Inc. (ICTSI) on Monday reported net income attributable to equity holders in the first quarter of this year rose 3 percent to $54 million from $52.4 million year earlier.
Unaudited consolidated revenues from port operations jumped 19 percent to $296.1 million from $248.9 million in the comparative period last year.
It said in a statement the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) of $127.5 million was 23 percent higher than the $103.6 million last year.
The company said the increase in net income was mainly driven by Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V (OPC) in Puerto Cortes, Honduras, as the two container terminals entered their second full year of commercial operations.
ICTSI said it booked in January 2014 a $13.2 million one-time gain on sale of non-core asset when it divested its holdings in Cebu International Container Terminal, Inc. Excluding the one-time gain, recurring net income grew 38 percent in the first quarter of 2015.
ICTSI handled a consolidated volume of 1,982,773 twenty-foot equivalent units (TEUs) for the quarter that ended March 31, 2015, 13 percent more than the 1,757,095 TEUs handled in the same period in 2014.
The increase in volume was mainly due to the improvement in international and domestic trade in most of the company’s terminals, new shipping lines and services, continuing volume ramp-up in the company’s terminal operations in Mexico and Honduras, favorable impact of terminal consolidation at Yantai, China, and the contribution of the company’s new terminal in Basra, Iraq which began commercial operation in November 2014.
Excluding the volume generated by the new terminal in Iraq, organic volume growth was at 11 percent. The company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77 percent of the Group’s consolidated volume in the first quarter of 2015, grew 8 percent compared to the same period last year.
Gross revenues from port operations for the quarter surged 19 percent to $296.1 million from the $248.9 million reported in the same period in 2014.
ICTSI said that excluding the revenues from the new terminal, organic revenue growth was at 17 percent.
The Group’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras accounted for 82 percent of the Group’s consolidated revenues in the first quarter of 2015.
Consolidated cash operating expenses in the first quarter grew 11 percent to $119.7 million from $108.2 million compared to the same period in 2014.
The increase was mainly driven by the expenses and start-up costs of the new terminal in Iraq and projects in Australia, Nigeria and DR Congo, higher manpower costs arising from volume growth and government-mandated and contracted salary rate adjustments in certain terminals, and increased business development activities.
Excluding the cost associated with the new terminal and projects, total cash operating expenses would have increased eight percent.
Capital expenditures for the first quarter of 2015 amounted to $64.2 million, approximately 12 percent of the $530 million capital expenditure budget for the full year 2015.
The established budget is mainly allocated for the completion of development at the Company’s new container terminals in Mexico and Iraq, capacity expansion in its terminal operation in Manila, and to start the development of the new terminals in Democratic Republic of Congo and Australia.
ICTSI invested $16 million in the development of SPIA, its joint venture container terminal development project with PSA International Pte Ltd. (PSA ) in Buenaventura, Colombia. The company’s share for 2015 to complete phase one of the project is approximately $140 million.
ICTSI is widely acknowledged as 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 it continues to pursue container terminal opportunities around the world.