Ocean Carrier Review
Pacific Northwest Ports
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ICTSI 1Q income up 15% to US$40.7 million
International Container Terminal Services, Inc. (ICTSI) has reported unaudited consolidated financial results for the quarter ended 31 March 2013, posting revenue from port operations of US$209.3 million, an increase of 20 percent over the US$173.8 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$97.5 million, 27 percent higher than the US$76.7 million generated in the first quarter of 2012; and net income attributable to equity holders of US$40.7 million, up 15 percent over the US$35.4 million earned in the same period last year.
ICTSI handled consolidated volume of 1,496,462 twenty-foot equivalent units (TEUs) for the quarter ended 31 March 2013, 12 percent more than the 1,338,316 TEUs handled in the same period in 2012. The increase in volume was mainly due to the continuous growth in international and domestic trade in most of the Company’s terminals and the volume generated by the Company’s new terminal operations in Jakarta, Indonesia and Karachi, Pakistan. Excluding the volume from the two recent port acquisitions and the effect of the cessation of the operations in Syria effective January 2013, organic volume growth was relatively flat. The Company’s seven key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar, China and Pakistan accounted for 79 percent of the Group’s consolidated volume in the first quarter of 2013.
Gross revenues from port operations for the quarter ended 31 March 2013 surged 20 percent to US$209.3 million, from the US$173.8 million reported in the same period in 2012. The increase in revenues was mainly due to higher storage revenues and ancillary services, favorable volume mix, tariff rate increases in certain key terminals, and the revenue contribution from the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding the revenues from the newly acquired terminals and the effect of the cessation of the operations in Syria, organic revenue growth was nine percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar, China and Pakistan accounted for 85 percent of the Group’s consolidated revenues in the first quarter of 2013.
Consolidated cash operating expenses in the first quarter of 2013 grew 15 percent to US$84.6 million, from US$73.8 million in the same period in 2012. The increase was mainly driven by higher volume-related expenses (i.e., on-call labor, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, and the inclusion of the expenses of the new terminals in Jakarta, Indonesia, and Karachi, Pakistan. Excluding the cash operating expenses of the new terminals as well the impact of the cessation of the Company’s operation in Syria, total cash operating expenses would have increased by only six percent.
Consolidated EBITDA for the first quarter of 2013 increased 27 percent to US$97.5 million, from US$76.7 million in 2012 mainly due to the stronger revenues from storage and ancillary services, tariff increases in certain key terminals and the contribution of the new terminals in Jakarta, Indonesia and Karachi, Pakistan. Excluding Jakarta and Karachi as well as Syria in 2012, EBITDA growth would have been 10 percent. Meanwhile, consolidated EBITDA margin increased to 47 percent in the first quarter of 2013 compared to 44 percent in the same period in 2012.
Consolidated financing charges and other expenses for the quarter increased 33 percent from US$9.5 million in 2012 to US$12.6 million in 2013 primarily due to higher outstanding interest-bearing debt. ICTSI issued US$400 million of 10-year bonds in January 2013 mainly to fund its capital expenditure program for 2013 and refinance medium-term loans.
Capital expenditures for the first quarter of 2013 amounted to US$93 million, approximately 17 percent of the US$550 million capital expenditure budget for the full year 2013. The established budget is mainly allocated f
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