International Container Terminal Services, Inc (ICTSI) is seeking to mitigate the impact of the Coronavirus on cargo volumes which grew for the company during 2019.
The company reported a 5% growth in cargo volume for 2019 in its annual results released on 5 March.
In a statement, Enrique Razon, Chairman of ICTSI said: “Whilst we cannot be certain how long this situation will last; we are seeking to mitigate this impact through rigorous cost control and increasing market share.”
He noted that the outbreak of COVID-19 has had an impact on volumes particularly in Asia, adding, “we are closely review developments across the regions in which we operate”.
On 5 March ICTSI reported reported audited consolidated financial results for 2019 posting revenue from port operations of $1.5 billion, an increase of 7% over the 1.4 billion reported in 2018.
ICTSI handled consolidated volume of 10,178,018 TEU in 2019, 5% more than the 9,736,621 TEUs handled in 2018.
The increase in volume was mainly due to continuing ramp-up at ICTSI’s new terminals in Lae and Motukea in Papua New Guinea and the contribution of the new terminal in Rio de Janeiro in Brazil; improvement in trade activities in Subic, Philippines, Matadi, Democratic Republic of Congo and Basra, Iraq.
In addition the increase can be attributed to new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia, Baltic Container Terminal (BCT) in Gdynia Poland, Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia, Batumi International Container Terminal (BICT) in Batumi, Georgia and Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $830.1 million was 10% higher than the $755.4 million generated in 2018; and net income attributable to equity holders of to $100.4 million, down 52% compared to the $207.5 million earned last year.
Diluted earnings per share declined 71% at $0.020 from $0.071 in 2018. Excluding these non-recurring gains and charges, recurring net income in 2019 was 23 percent higher at US$259.1 million compared to the $210.5 million earned the previous year.