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Issue #590 | Perishables | Mediterranean | Middle East | Africa Trade

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2014 Media Kit
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ICTSI 9 month income up 97% to US$73 million

By: | at 07:00 PM | Ports & Terminals  

International Container Terminal Services, Inc. (ICTSI) reported consolidated unaudited financial results for the nine months ending September 30, 2010, posting revenue from port operations of US$380.6 million, an increase of 27 percent over the US$299.3 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$182.4 million, 41 percent higher than the US$129.1 million generated in 2009, and net income attributable to equity holders of US$73.0 million, up 97 percent over the US$37.2 million earned last year.

The higher net income attributable to equity holders was mainly caused by the upsurge in revenues, modest increase in cash operating expense, lower effective tax rate for the period and a one-time gain on sale of non-core assets. After adjusting for the effect of non-recurring income related to the sale of ICTSI’s 9.54 percent ownership stake in Subic Shipyard and Engineering, Inc. and 8.56 percent in Consort Land, Inc and a write-down of the carrying value of certain property assets related to the company’s greenfield project in Buenaventura, Colombia, net income attributable to equity holders for the period would have been US$63.6 million, 71 percent higher than the same period in 2009.

For the quarter ending September 30, 2010, revenue from port operations increased 21 percent, from US$110.5 million to US$133.6 million. EBITDA was up 30 percent, from US$49.2 million to US$63.8 million. Net income attributable to equity holders grew 119 percent, from US$14.0 million to US$30.7 million.

The third quarter net income attributable to equity holders included non-recurring income related to the sale of ICTSI’s 9.54 percent ownership stake in Subic Shipyard and Engineering, Inc. and 8.56 percent in Consort Land, Inc., and a write-down of the carrying value of certain property assets related to the company’s project in Buenaventura, Colombia. Removing the effect of these one-time charges, net income attributable to equity holders for the period would have been US$21.3 million, 52 percent higher compared to the same period in 2009.

Enrique K. Razon Jr., ICTSI chairman and president, commented: “We continue to see a strong growth trend in volumes and revenues across our portfolio of terminals. Our financial results for the first nine months of the year have exceeded the same period in 2008, our previous record performance.”

ICTSI handled consolidated volume of 3,070,246 twenty foot equivalent units (TEUs) in the first nine months of 2010, 21 percent higher compared to the 2,533,951 TEUs handled in the same period in 2009.

The increase in volume was mainly due to the continued recovery in global trade, particularly in markets where ICTSI’s ports are located. Compared to the 2,776,973 TEUs handled in the first nine months of 2008, the highest January to September throughput level recorded until this year, the Group’s consolidated volume for the same period in 2010 was higher by 11 percent. For the quarter ending September 30, 2010, total TEUs handled were 1,060,641 TEUs compared to 943,805 TEUs in 2009.

Throughput from the Company’s container terminal operations in Asia increased 21 percent to 1,941,101 TEUs in the first nine months of 2010, from 1,604,787 TEUs in the same period in 2009. The Group’s container terminal operations in Asia continued to be the biggest contributor in terms of volume accounting for 63 percent of consolidated volume in the first three quarters of 2010. For the third quarter of 2010, throughput from the Group’s Asian operations grew nine percent to 652,164 TEUs from 597,076 TEUs in the same period in 2009.

Volume from the Company’s container terminal operations in the Americas grew by 21 percent to 758,325 TEUs in the first three quarter of 2010 compared to the 626,410 TEUs handled in the same period in 2009. The Group’s container terminal operations in the Americas, which accounted for 25 percent of consolidated volumes in the first three quarters of 2010, performed exceptionally well with its two operating te