ICTSI has reported financial gains across the board for the 2013 financial year, with a 20 percent increase in net income.
The global container terminal company announced that they ended the year with revenue from port operations peaking at US$852.4 million, an increase of 17 percent over $729.3 million reported at the same period in 2012.
Earning before Interest, Taxes, Depreciation and Amortisation (EBITA) soared 23 percent higher than the year before at $377.3 million, whilst net income attributable to equity holders rose 20 percent – $172.4 million compared to 2012’s 143.2 million.
The gains in 2013 are mainly due to strong revenue growth and improvements made to key terminals alongside contribution from the new terminal in Karachi Pakistan.
Terminal wide, ICTSI handled a consolidated volume of 6,309,840 TEU, 12 percent more than the year before.
The increase has been attributed to continuous growth in international and domestic trade operations at all the companies owned terminals, plus the contribution of new terminals, PT Olah Jasa Andal, Indonesia (PT OJA) and Pakistan International Container Terminal (PICT), opening in August 2012 and October 2012 respectively.
This handling capacity is only expected to grow with the opening of Contecon Manzanillo S.A. de C.V., Mexico (CMSA), and Operadora de Puerto Cortes, S.A. de C.V., Honduras (OPC) in the final quarter of 2013.
Excluding these new developments, the company’s key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 78 percent of the Group’s consolidated volume in 2013.
But with growth in size comes growth in costs – Consolidated cash operating expenses grew to $359.5 million, 13 percent more than that of 2012. This has largely been put down to the development of the new terminals, alongside government-mandated and contracted salary rate increases at other sites.
Excluding the cost of operating the new terminals, as well as expenses incurred at ICTSI’s operations in Syria for the same period in 2012, total cash operating expenses have only increased by three percent.
Plans for the coming year include investments to start the development of container terminals in Honduras and the Democratic Republic of Congo, alongside the completion of phase one developments at terminals in both Mexico and Argentina.
A capital expenditure budget of $310 million has been allocated to cover the costs of the projects.