International Container Terminal Services, Inc. (ICTSI) has reported robust consolidated unaudited financial results for the second quarter ending 30 June 2008: revenue from port operations of ₱ 5.04 billion, an increase of 53% over ₱ 3.29 billion reported last year; Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of ₱ 2.19 billion, up 52% from the ₱ 1.44 billion earned in the second quarter of 2007, and net income attributable to equity holders of ₱ 784 million, an increase of 6% over the ₱ 736 million earned in the same period last year.
Both the 2007 and 2008 results reflect the adoption on 1 January 2008 (and restatement of 2007) of IFRIC Interpretation 12 – Accounting for Service Concession Agreements, and include an associated unrealized foreign exchange gain of ₱ 219million in the second quarter of 2007 and an unrealized foreign exchange loss of ₱ 129 million in the same quarter of 2008. Excluding the unrealized gain and loss, second quarter net income attributable to equity holders would have been ₱ 517 million in 2007 and ₱ 913 million in 2008, an increase of 77%.
For the six months ending 30 June 2008, revenue from port operations grew 49%, from ₱ 6.40 billion to ₱ 9.54 billion. In the same period, EBITDA increased 49%, from ₱ 2.79 billion to ₱ 4.16 billion while net income attributable to equity holders grew 17%, from ₱ 1.35 billion to ₱ 1.58 billion. The first half net income results include an unrealized foreign exchange gain of ₱ 275 million in 2007, and an unrealized foreign exchange loss of ₱ 85 million in 2008. Excluding the unrealized gain and loss, the first half net income attributable to equity holders would have been ₱ 1.08 billion in 2007 and ₱ 1.67 billion in 2008, an increase of 54%.
Enrique K. Razon Jr., ICTSI chairman and president, commented: “In spite of the general unease about the potential impact of the slowing global economy on trade and containerized cargo volumes, ICTSI continues to see strong business and financial results across our portfolio. In addition to improving performance at our existing terminals, we continue to achieve improvements at the terminals we acquired last year, and are actively looking for additional acquisition opportunities.”
ICTSI handled consolidated volume of 913,718 twenty-foot equivalent units (TEUs) in the second quarter of 2008, 42% higher compared to the 642,274 TEUs handled in the same period in 2007. For the six months ended 30 June 2008, total TEUs handled were 1,755,474 compared to 1,284,748 TEUs in 2007, a 37% increase over the same period last year.
Domestic operations accounted for 460,016 TEUs or 50% of consolidated volumes for the quarter. Volume from domestic operations grew by 19% in the second quarter of 2008 due mainly to an 18% increase at the Manila International Container Terminal (MICT). and a 34% increase at the company’s port operations in Davao, southern Philippines.
Foreign container volume, on the other hand, grew 77% over the same period last year, driven principally by the addition of the company’s Ecuador, Syria and Georgia port operations, and exceptionally strong growth at the company’s operations in Madagascar, China, and Indonesia, which each averaged a 39% increase. Foreign container volumes now account for 50% of total as compared with 40% in the same period last year, and 46% for the full year 2007.
Second quarter gross revenues from port operations increased by 53% to ₱ 5.04 billion, from the ₱ 3.29 billion reported in the second quarter of 2007. Revenues from the existing business units improved by 24%, accounting for 46% of total consolidated revenue growth during the quarter. Combined revenues from new port operations in Ecuador, Georgia, and Syria, on the other hand, accounted for 54% of total consolidated revenue growth. Revenue contribution from international operations grew 88%, from ₱ 1.47 billion in the second quarte