ICTSI profit dips on costs of new terminals
International Container Terminal Services, Inc. (ICTSI) reported a six percent dip in attributable consolidated net income to US$97.7 million in the first half of 2018 from the US$103.6 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it posted revenues of US$661.8 million, an increase of 10 percent over the US$603.7 million reported for the first six months of 2017.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$299.5 million, three percent higher than the US$289.7 million generated in the first half of 2017.
The decrease in net income was due primarily to the startup costs of the new terminals in Papua New Guinea and Australia; and the US$7.5 Million non-recurring gain on the termination of the sub-concession agreement in Nigeria in the second quarter of 2017.
This was tapered by the strong operating income from organic terminals and a decrease in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.
Profits were also boosted by a US$2.8 million non-recurring gain from the pre-termination of interest rate swap related to the pre-payment of the project finance loan at its terminal operations in Manzanillo, Mexico in May 2018.
Excluding the non-recurring gains, consolidated attributable net income would have decreased marginally by one percent in 2018.
ICTSI handled consolidated volume of 4,714,255 twenty-foot equivalent units (TEUs) in the first six months of 2018, four percent more than the 4,545,405 TEUs handled in the same period in 2017.