ICTSI Income Falls as Volume Rises

Philippines-based International Container Terminal Services Inc (ICTSI)  has announced a 6% decrease in income in its consolidated financial results for the first half of 2018.

However, the port operator saw overall throughput rise 4% to 4.7m teu in the first half compared to 4.5m teu handled in the previous corresponding period in 2017, mainly on robust trade in the emerging markets and contributions from new terminals in Lae and Motukea in Papua New Guinea and the Australian port of Melbourne.

The decrease in net income was due primarily to the start-up costs of the new terminals in Papua New Guinea and Australia; and the US$7.5 Million non-recurring gain on the termination of the sub-concession agreement in Nigeria in the second quarter of 2017, tapered by the strong operating income from organic terminals; a decrease in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia; and a US$2.8 million non-recurring gain from the pre-termination of interest rate swap related to the pre-payment of the project finance loan at its terminal operations in Manzanillo, Mexico in May 2018.

Excluding the non-recurring gains, consolidated net income attributable to equity holders would have decreased marginally by one percent in 2018. Diluted earnings per share was 22 percent lower at US$0.032 from US$0.041 in the first half of 2017.

Gross revenues for the first half of 2018 increased 10 percent to US$661.8 million compared to US$603.7 million reported in the same period in 2017.