ICTSI income up 42% to $60M in 1st half

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) reported a 42-percent jump in net income in the first half this year to $60 million, boosted by strong volumes from foreign port operations and an improving global economy.

In the first half, ICTSI registered revenues of $319.1 million, up 29 percent from $246.9 million a year ago while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 21 percent to $143.3 million largely due to the double-digit volume growth across all geographic segments of the group and stronger revenues from storage and ancillary services.

EBITDA growth was temprered by the higher consolidated cash operating expenses which expanded 45 percent to $134.2 million.

ICTSI handled consolidated volume of 2.48 million twenty-foot-equivalent units (TEUs) in the first six months of the year, 24 percent higher than the previous level due to the continued upturn in international trade, particularly in markets where its ports are located as well as the consolidation of the company’s new ports in Portland, Oregon and Rijeka, Croatia.

Excluding the volume from the two latest port acquisitions, organic volume growth was at 18 percent.

In the second quarter alone, ICTSI’s net earnings surged 61 percent to $31.5 million on the back of a 30-percent rise in revenues to $164.2 million. EBITDA rose 16 percent to $72.1 million while total TEUs handled were 25 percent more at 1.31 million TEUs.

Operating expenses likewise increased 45 percent to $134.2 million, largely driven by the growth in volume-related expenses and start-up and operating expenses of ICTSI Oregon and AGCT.

Financing charges and other expenses went up 10 percent to $24 million, primarily due to higher debt level brought about by the issuance of the $450 million senior notes in 2010.

ICTSI spent $70.5 million from January to June this year, majority of which was spent for the civil works and major equipment at its Manila terminal. The company has programmed $356 million for its capital expenditures this year for new projects in Argentina, Mexico and Colombia and for civil works, systems improvement and purchase of major cargo handling equipment at its terminal operations in Manila, Brazil and Ecuador.

ICTSI is widely acknowledged as a leading global developer and operator of container terminals in the 50,000 to 1.5 million TEU/year range. ICTSI has an experience record that spans four continents and continues to pursue opportunities around theworld.