International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first six months of 2014 posting revenue from port operations of US$510.3 million, an increase of 23 percent over the US$413.7 million reported for the same period last year, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$212.2 million, 13 percent higher than the US$188.1 million generated in the first half of 2013, and net income attributable to equity holders of US$101.7 million, up 23 percent over the US$82.9 million earned in the same period last year.  The higher net income attributable to equity holders for the first semester was mainly due to strong operating income from its three geographic segments and gains recognized on the sale of a non-operating subsidiary in Cebu, Philippines, the termination of management contract in Kattupalli, India, and the settlement of the insurance claims in Guayaquil, Ecuador of US$13.2 million, US$1.9 million and US$1.5 million, respectively.  Excluding the non-recurring items, recurring net income would have been three percent higher at US$85.1 million.  Diluted earnings per share for the period was likewise higher by 23 percent at US$0.043 from US$0.035 in 2013.   For the quarter ending June 30, 2014, revenue from port operations increased 28 percent from US$204.4 million to US$261.4 million while EBITDA was 20 percent higher at US$108.6 million from US$90.6 million.  Net income attributable to equity holders grew 17 percent from US$42.2 million to US$49.3 million.  Excluding the non-recurring gains from the termination of the management contract in India and the settlement of CGSA’s insurance claims, recurring net income would have increased nine percent to US$45.9 million.  Diluted earnings per share for the quarter improved 16 percent to US$0.021 from US$0.018 in 2013.   ICTSI handled consolidated volume of 3,566,023 twenty-foot equivalent units (TEU) for the first six months of 2014, 18 percent more than the 3,027,005 TEUs handled in the same period in 2013.  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 Contecon Manzanillo S.A. (CMSA) and Operadora Portuaria Centroamericana, S.A. de C.V (OPC), the Company’s new container terminals in Manzanillo, Mexico and Puerto Cortes, Honduras, respectively.  Excluding the volume from the two new terminals, organic volume growth increased one percent.  The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 70 percent of the Group’s consolidated volume in the first half of 2014.  For the quarter ending June 30, 2014, total consolidated throughput was 18 percent higher at 1,808,928 TEUs compared to 1,530,543 TEUs in 2013. Gross revenues from port operations for the first six months of 2014 surged 23 percent to US$510.3 million from the US$413.7 million reported in the same period in 2013.  The increase in revenues was mainly due to the revenue contribution from the new terminals in Puerto Cortes, Honduras and Manzanillo, Mexico, favorable volume mix, stronger revenues from ancillary services and tariff increase in certain key terminals.  Excluding the revenues from the new terminals, organic revenue growth was at seven percent.  The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 75 percent of the Group’s consolidated revenues in the first half of 2014.   Gross revenues from port operations for the quarter ended June 30, 2014 surged 28 percent to US$261.4 million from the US$204.4 million reported in the same period in 2013.  Consolidated cash operating expenses in the first half of 2014 grew 29 percent to US$221.0 million from US$171.9 million in the same period in 2013.  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, increased business development activities, cessation of ICTSI Oregon’s rent rebate program beginning January 2014 and cash operating expenses and start-up costs of new terminals.  Excluding the cash operating expenses of the new terminals in the same period in 2013, total cash operating expenses would have increased by only five percent.   Consolidated EBITDA for the first half of 2014 increased 13 percent to US$212.2 million from US$188.1 million in 2013 mainly due to the contribution of the new terminals in Puerto Cortes, Honduras and Manzanillo, Mexico, stronger revenues from ancillary services and tariff increase in certain key terminals.  Excluding the impact of the new terminals, consolidated EBITDA would have increased by three percent. Meanwhile, consolidated EBITDA margin decreased to 42 percent in the first six months of 2014 compared to 45 percent in the same period in 2013 due to the higher port fees and cash operating expenses.  For the quarter ended June 30, 2014 consolidated EBITDA increased 20 percent to US$108.6 million from US$90.6 million in 2013 while consolidated EBITDA margin declined to 42 percent compared to 44 percent in the same period in 2013.   Capital expenditures for the first half of 2014 amounted to US$104.5 million, approximately 34 percent of the US$310 million capital expenditure budget for the full year 2014.  The established budget is mainly allocated for the completion of phase one development in the Company’s new container terminals in Mexico and Argentina, and to start the development of the terminals in Honduras and Democratic Republic of Congo.  In addition, ICTSI invested US$23.9 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 expected share for 2014 is approximately US$120.0 million.