ICTSI gets P6.85-B credit facility

Port operator International Container Terminal Services, Inc. (ICTSI) has just secured a total of P6.85 billion in medium-term credit facilities to finance the company’s investment projects and refinance debts for prepayment next year.

Provided by Philippine-based commercial banks and institutional investors, the credit facilities have various maturities, ranging from five to seven years.

“We are highly pleased with the successful conclusion of these medium term credit facilities. Establishing such term financing platform particularly during this period of challenging credit markets ensures that ICTSI has the appropriate capital structure to deliver on our investment program. Furthermore, this provides testament to the strength of the company and the confidence of the financial markets in ICTSI and its vision,” ICTSI chief finance officer Martin O’Neil said.

Philippine-based ICTSl is a leading developer of international ports and terminals with a global portfolio spanning 11 countries in four continents.

Company officials have said that they expect a tough year ahead as the US-led global economic downturn rears its ugly head in 2009.

“We remain cautious concerning the outlook for the global economy and world trade, and are taking steps to position ourselves accordingly,” ICTSI chairman Enrique Razon said.

“Despite a worsening global economic climate, ICTSI has delivered solid results for the quarter,” he added.

In a disclosure to the Philippine Stock Exchange, the company said profits inched up by two percent to P734 million in the third quarter from a year earlier, while revenues went up by more than a third to P5.68 billion, from P4.21 billion in the same period last year.

ICTSI said profits were dampened by its compliance with stricter accounting rules.

Third quarter results include a loss on hedging activities of P190 million (P124 million after tax), and an increase in the effective tax rate to 42.8 percent, from 29.1 percent in the prior year period.

Razon said that despite a worsening global economic climate, ICTSI has delivered solid results for the quarter. “We remain cautious concerning the outlook for the global economy and world trade, and are taking steps to position ourselves accordingly,” he added.

ICTSI handled consolidated volume of 1,021,499 20-foot equivalent units (TEUs) in the third quarter of 2008, 26 percent higher higher the 811,049 TEUs handled in the same period in 2007.

Domestic operations accounted for 530,463 TEUs or 52 percent of consolidated volume for the quarter.

Volume from domestic operations grew by 28 percent in the third quarter of 2008 mainly due to a 13-percent volume increase at the Manila International Container Terminal (MlCT), the additional volume from the company’s new port operations in Misamis Oriental, southern Philippines, and the consolidation of the volume of South Cotabato Integrated Port Services Inc. (SCIPSI), its port in General Santos City, South Cotabato, Philippines.

ICTSI increased its shareholdings in SCIPSI from 35.70 percent to 50.08 percent last July 9.

Foreign container volume grew 23 percent 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 Brazil, Madagascar, and China.

Container volumes from foreign operations accounted for 48 percent of total consolidated volume for the quarter.