AJOT Digital Edition | Issue #577

Cover of issue-577.png

Northeast Ports

Export-Import Bank

View Issue #577 Now!

2014 Media Kit
  • Share this article:

ICTSI 9-month net income up 22% to US$128.8 million

By: | at 03:54 PM | Channel(s): Ports & Terminals  

International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first nine months of 2013, posting revenue from port operations of US$624.7 million, an increase of 19 percent over the US$524.7 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$285.5 million, 26 percent higher than the US$225.8 million generated in the first nine months of 2012; and net income attributable to equity holders of US$128.8 million, up 22 percent over the US$105.8 million earned in the same period last year.

The higher net income attributable to equity holders for the first nine months of 2013 was mainly due to strong revenue growth and margin improvement in certain key terminals and the contribution from the new terminal in Karachi, Pakistan. Diluted earnings per share for the period was likewise higher by 17 percent at US$0.054 from US$0.046 in 2012.

For the quarter ending 30 September 2013, revenue from port operations increased 17 percent, from US$179.7 million to US$211.0 million while EBITDA was 27 percent higher at US$97.3 million, from US$76.7 million. Net income attributable to equity holders grew 29 percent, from US$35.6 million to US$45.9 million and diluted earnings per share improved 27 percent to US$0.019 from US$0.015 in 2012.

ICTSI handled consolidated volume of 4,628,117 twenty-foot equivalent units (TEUs) for the first nine months of 2013, 13 percent more than the 4,083,842 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 Pakistan International Container Terminal (PICT) and PT Olah Jasa Andal (PT OJA), the Company’s new container terminals in Karachi, Pakistan and Jakarta, Indonesia, respectively. Excluding volume from the two new terminals and the effect of the cessation of the operations in Syria effective January 2013, organic volume growth increased by one percent. The Company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 79 percent of the Group’s consolidated volume in the first nine months of 2013.

For the quarter ending September 30, 2013, total consolidated throughput was 16 percent higher at 1,601,112 TEUs compared to 1,386,107 TEUs in 2012.

Gross revenues from port operations for the first nine months of 2013 surged 19 percent to US$624.7 million, from the US$524.7 million reported in the same period in 2012. The increase in revenues was mainly due to the volume growth, higher storage revenues and ancillary services, 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 Tartous, Syria, organic revenue growth was eight percent. The Group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 85 percent of the Group’s consolidated revenues in the first nine months of 2013.

Gross revenues from port operations for the quarter ended September 30, 2013 surged 17 percent to US$211.0 million from the US$179.7 million reported in the same period in 2012.

Consolidated cash operating expenses in the first nine months of 2013 grew 13 percent to US$255.4 million, from US$225.4 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, higher business development expenses, and the inclusion of the expenses of the new terminals in Jakarta, Indonesia, Karachi, Pakistan. Excluding the cash operating expenses of the new terminals as well as the expenses incurred in the Company’s operation in Syria in the same period in 2012, total cash operating expenses would have increased by only five percent.

Consolidated EBITDA for the first nine months of 2013 increased 26 percent to US$285.5 million, from US$225.8 million in 2012 mainly due to the volume growth and stronger revenues arising from favorable volume mix, higher 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 PICT and PT OJA, as well as TICT in 2012, EBITDA growth would have been at 12 percent. Meanwhile, consolidated EBITDA margin increased to 46 percent in the first nine months of 2013 compared to 43 percent in the same period in 2012.

For the quarter ended September 30, 2013 consolidated EBITDA increased 27 percent to US$97.3 million from US$76.7 million in 2012 while consolidated EBITDA margin also improved to 46 percent compared to 43 percent in the same period in 2012.

Consolidated financing charges and other expenses for the first nine months of 2013 increased 57 percent to US$33.9 million, from US$21.6 million in 2012 due mainly 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 half of 2013 amounted to US$357.9 million, approximately 65 percent of the US$550.0 million capital expenditure budget for the full year 2013. The established budget is mainly allocated for the completion of the Company’s terminal development projects in Mexico and Argentina, and the ramp-up of construction activities in Colombia and Davao, southern Philippines.