ICTSI posts net income of $207.7M
International Container Terminal Services Inc. registered a net income of $207.7 million in 2017, up 7 percent from $193.5 million in 2016, boosted by the operations of new foreign terminals.
“The increase in net income was mainly due to the continuing ramp-up at the company’s new terminal in Matadi, Democratic Republic of Congo (DRC); strong operating results from the terminals in Iraq, Mexico, Honduras, Madagascar, China, Poland and Brazil; and the gain related to the termination of the sub-concession agreement in Lagos, Nigeria,” ICTSI said.
ICTSI’s gross revenues amounted to $1.24 billion, up 10 percent from $1.13 billion in 2016.
“The increase in revenues was mainly due to higher volume, tariff rate adjustments at certain terminals, new contracts and services with shipping lines and the contribution from the company’s new terminals in Matadi, DRC and Melbourne, Australia,” ICTSI said.
Consolidated gross revenues organically increased by seven percent.
ICTSI handled consolidated volume of 9,153,458 twenty-foot equivalent units (TEUs) in 2017, five percent more than 8,689,363 TEUs handled in 2016.
The company attributed the increase in volume to improvement in global trade activities especially in the emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and the contribution of new terminals in Matadi, DRC and Melbourne, Australia.
Excluding the new terminals, consolidated volume would have increased by four percent.
Consolidated cash operating expenses in 2017 was 13 percent higher at $475.9 million than $419.6 million in 2016.
The increase in cash operating expenses was mainly due to the cost contribution of the new terminal operations in Matadi, DRC and Melbourne Australia, higher throughput, increase in fuel prices and power rates at certain terminals, and unfavorable translation impact of the BRL appreciation at Suape, Brazil.
The increase was tapered by the additional benefits of the on-going group-wide cost optimization initiatives and the favorable translation impact.
Capital expenditures, net of capitalized borrowing costs and other expenses, amounted to $174.8 million, approximately 73 percent of the $240-million capital expenditure budget for 2017.
The capital expenditure was mainly to fund the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the project in Australia; continuing development of container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.