International Container Terminal Services, Inc. (ICTSI), the global operator of container terminals in the 50,000 to 2.5 million TEU/year range, has reported financial results for the year ended December 31, 2016, posting a net income of US$180.0 million – up 207% compared to the $58.5 million earned in 2015.
Revenue from port operations was $1.128 billion, 7% higher compared to $1.051 billion last year and ICTSI's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $525.1 million is 17% better than the $450.0 million generated the previous year.
Fully diluted earnings per share for the period surged 491% to $0.065 from $0.011 in 2015 and ICTSI handled consolidated volume of 8,689,363 twenty-foot equivalent units (TEUs) for the year ended December 31, 2016, 12% more than the 7,775,993 TEUs handled in 2015.
The increase in volume was mainly due to continuing volume ramp-up at ICTSI Iraq, the Company’s terminal in Umm Qasr, Iraq, and new shipping lines and services at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico, Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador, and the terminals in Indonesia.
There is also improvement in trade activities in Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar, Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia and in most of the Philippine terminals.
Gross revenues from port operations increased 7% in 2016 to $1.128 billion from US$1.051 billion the previous year.
The increase in revenues was mainly due to improvement in trade activities at most of the Philippine terminals resulting to volume growth, with new contracts with shipping lines and services at the terminals in Indonesia, Pakistan, Ecuador and Mexico.
Revenue increases also came from tariff rate adjustments at certain terminals, with increase in storage and special services revenues at the terminal in Honduras, and a favorable container-volume mix at most of the Company’s terminals; and continuing ramp-up at ICTSI Iraq.
For the quarter ended December 31, 2016, total consolidated throughput was 12% higher at 2,254,171 TEUs compared to 2,007,745 TEUs in the same period in 2015.
Capital expenditures for 2016 amounted to $391.9 million.
Excluding capitalized borrowing costs and other expenses, capital expenditures amounted to $353.5 million, approximately 84% of the $420.0 million capital expenditure budget for the full year 2016.
The capital expenditure was mainly to fund the initial development stage of the Company’s greenfield projects in Australia, Democratic Republic of Congo and Iraq, the continuing development of the Company’s container terminals in Mexico and Honduras, and capacity expansion in its terminal operations in Manila and Ecuador.
In addition, ICTSI invested $41.2 million or 69% of its $60.0 million budget in the development of Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.
The Group’s capital expenditure budget for 2017 is approximately $240.0 million mainly allocated for 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 Company’s project in Australia.
It also includes the continuing development of the Company’s container terminals in Mexico and Honduras and capacity expansion in its terminal operations in Manila.
With regard to ICTSI’s joint venture container terminal development project in Buenaventura, Colombia, the Company allocated approximately $25.0 million for its share in 2017 to complete the initial phase of the project.