ICTSI first quarter income rises 29% to US$52.4 million

Revenue of port management company International Container Terminal Services, Inc. (ICTSI) from port operations in the first quarter 2014 rose 19% to US$248.9 million (US$209.3m), the company said in a press release. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached US$103.6 million, up 6% year-on-year ($97.5m) and net income attributable to equity holders was US$52.4 million, a 29% gain compared to the same period a year ago.

The higher net income attributable to equity holders was mainly due to the one-time gain on sale of a non-core asset. In January 2014, the Company divested of Cebu International Container Terminal, Inc., a non-core asset, to Cebu Asian Rim Property and Development Corp. and Hong Kong Land (Philippines) BV for a one-time gain of US$13.2 million. Excluding the one-time gain on sale of a non-core asset, together with the off-setting of higher interest on concession rights payable arising from the new concession contract of Operadora de Puerto Cortés, S.A. de C.V. (OPC) in Honduras, and the higher depreciation, amortization and start-up expenses from new terminals Contecon Manzanillo S.A. de C.V. (CMSA) in Mexico and OPC, organic net income would have been six percent higher at US$45.1 million.

ICTSI handled a consolidated volume of 1,757,095 twenty-foot equivalent units (TEUs) for the quarter ended 31 March 2014, 17 percent more than the 1,496,462 TEUs handled in the same period in 2013.

The Company’s seven key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar, China and Pakistan accounted for 71 percent of the Group’s consolidated volume in the first quarter of 2014.

Gross revenues from port operations for the quarter ended 31 March 2014 surged 19% to US$248.9 million, from the US$209.3 million reported in the same period in 2013. The increase in revenues was mainly due to higher storage revenues and ancillary services, favorable volume mix, tariff rate increases in certain terminals, new and renegotiated contracts with shipping lines and forwarders, and revenue contribution from new terminals in Manzanillo, Mexico and Puerto Cortes, Honduras. Excluding revenues from the new terminals, organic revenue growth was five percent.

The Group’s seven key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar, China and Pakistan accounted for 76 percent of the Group’s consolidated revenues in the first quarter of 2014.

Consolidated EBITDA for the first quarter of 2014 increased six percent to US$103.6 million, from US$97.5 million in 2013 mainly due to volume growth, stronger revenues from storage and ancillary services, tariff increases in certain key terminals, favorable volume mix and the contribution of new terminals in Mexico and in Honduras. Excluding the contribution from CMSA and OPC, EBITDA would have increased by one percent. Consolidated EBITDA margin decreased to 42 percent in the first quarter of 2014 compared to 47 percent in the same period in 2013 mainly due to higher business development expenses and higher port fees, cash operating expenses and the start-up cost of the new terminals in Mexico and in Honduras.

ICTSI is a port management company involved in the operation and development of marine terminals and seaports. Headquartered in the Philippines, ICTSI’s operations currently spans six continents. The company has received global acclaim for its public-private partnerships with economies divesting of its port assets to the private sector.