ICTSI NET INCOME DIPS DUE TO START-UP COSTS

RAZON- LED International Container Terminal Services, Inc. said net income attributable to equity holders in the first half of the year dipped by 6 percent to $ 97.7 million from $ 103.6 million last year due to one- off costs.

“The decrease in net income was due primarily to the start- up costs of the new terminals in Papua New Guinea and Australia; and the $ 7.5- million non- recurring gain on the termination of the sub- concession agreement in Nigeria in the second quarter of 2017 tapered by the strong operating income from organic terminals,” ICTSI said in a disclosure on Tuesday.

Other factors for the lower net income were a decrease in the company’s share in the net loss in its joint- venture container terminal in Colombia as well as a $ 2.8- million non- recurring gain from the pretermination of an interest rate swap related to the pre- payment of the project finance loan at its terminal operations in Mexico in May 2018.

“Excluding the non- recurring gains, consolidated net income attributable to equity holders would have decreased marginally by one percent in 2018,” ICTSI said.

It said gross revenues increased by 10 percent to $ 661.8 million in the first half “due to volume growth; new contracts with shipping lines and services; increase in revenues from non- containerized cargoes, storage, and ancillary services, and the contribution from the company’s new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated gross revenues increased by six percent.”

Consolidated volume for the first half stood at 4.7 million twenty- foot equivalent units ( TEUs), up 4 percent from the same period in 2017, primarily due to robust global trade activities particularly in the emerging markets,

ICTSI shares were down 85 centavos at P86.00 each on Tuesday.