Global port operator International Container Terminal Services, Inc. (ICTSI) produced a net profit of US$52.4 million for the first quarter of the year, 29% year-on-year higher mainly due to a $13.2 million one-off gain from selling a non-core asset in Cebu.
Excluding the one-time gain, organic net income would have been $45.1 million, 6% higher than the $40.7 million the company netted in the same period last year.
Revenue from port operations climbed 19% to $248.9 million from $209.3 million for the same period in 2013, according to ICTSI’s unaudited consolidated financial results for the period ended March 31.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 6% to $103.6 million, from $97.5 million.
Consolidated volume the group handled in the first quarter increased 17% to 1.757 million twenty-foot equivalent units (TEUs) from 1.496 million TEUs.
Growth in trade
ICTSI attributed the jump in cargo throughput to the continuous growth in international and domestic trade in most terminals it operated, as well as volume contributed by its two new hubs in Mexico and Honduras.
The port operator’s seven key terminals in Manila, Brazil, Poland, Ecuador, Madagascar, China, and Pakistan accounted for 71% of the group’s volume.
ICTSI said higher revenue from storage and ancillary services, a favorable volume mix, tariff rate increases in certain terminals, new and renegotiated contracts with shipping lines and forwarders, and revenue from its new terminals, contributed to the higher revenue.
The company also realized a one-time gain of $13.2 million when it divested its assets in Cebu International Container Terminal, Inc. on Jan. 14 to property tandem Cebu Asian Rim Property and Development Corp. and Hongkong Land (Philippines) BV.
Capital expenditure for the first quarter was $64 million, approximately 21% of the $310 million total capex for 2014.
ICTSI said the budget is mainly allocated for the completion of Phase 1 development of its new terminals in Mexico and Argentina, and to start the development of its terminals in Honduras and Democratic Republic of Congo.
In addition, ICTSI invested $11.4 million in the development of SPIA, its joint-venture port project with Singapore port operator PSA International Pte Ltd in Buenaventura, Colombia.
ICTSI develops and operates ports in Asia, Europe, Middle East, Africa, and the Americas.
The latest addition to ICTSI’s portfolio is the 26-year concession to develop and operate a terminal in Melbourne, Australia, through its subsidiary Victoria International Container Terminal Ltd.
