After adding two new terminals in the past 12 months, International Container Terminal Services (ICTSI) has seen revenue rise 10 per cent for 1H 2017 over the same period in 2016, as well as net income up 19 per cent.
Unaudited consolidated financial results for the first half of 2017 report revenue from port operations of US$603.7 million, an increase of 10 percent over the US$550.8 million reported for the first six months of 2016.
EBITDA was US$289.7 million, 13 per cent higher than the US$257.5 million generated in the first half of 2016, and net income attributable to equity holders was US$103.6 million, up 19 percent from the US$87.3 million earned in the same period last year.
According to ICTSI, the strong results are due to the continuing ramp-up at the new terminal in Matadi, Democratic Republic of Congo (DRC), strong operating income contribution from terminals in Iraq, Mexico and Brazil, and a one-time gain on the termination of the sub-concession agreement in Nigeria.
ICTSI claims the increase in net income was tapered by higher interest and financing charges; higher depreciation and amortisation expenses; start-up costs at the company’s terminal in Melbourne, Australia; and increase in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce (SPIA), its joint venture container terminal project with PSA International (PSA) in Buenaventura, Colombia, which increased from US$3.2 million in the first half of 2016 to US$18.7 million for the same period in 2017 as the company started full commercial operations at the beginning of the year.
Excluding the one-time gain on the termination of the sub-concession agreement in Nigeria, consolidated net income attributable to equity holders would have increased by 10 percent in the first half of 2017. Diluted earnings per share for the period was 32 percent higher at US$0.041 from US$0.031 in 2016.
ICTSI handled consolidated volume of 4,545,405TEU in the first six months of 2017, seven per cent more than the 4,264,633TEU handled in the same period in 2016. ICTSI attributes the increase in volume primarily to continuing improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and the new terminals in Matadi and Melbourne. Excluding the new terminals, consolidated volume increased by five per cent.
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