INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 7% increase in net income attributable to equity holders in the July-September period, as revenues from port operations grew 5%.
In a regulatory filing, ICTSI reported an attributable profit of $56.4 million in the third quarter, bringing the nine-month figure to $184.9 million — which was 29% higher than a year ago.
The Razon-led company attributed the profit growth to “strong operating income contribution from the terminals in Democratic Republic of Congo, Iraq, Mexico, and Manila and Subic in the Philippines; new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia; continuing ramp-up at the new terminals in Papua New Guinea; and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.”
However, ICTSI said the growth was tempered by “acceleration of debt issue costs associated with the partial prepayment of Euro-denominated term loan in July 2019 and the non-recurring gain from the interest rate swap related to the prepayment of the project finance loan at its terminal operations in Manzanillo, Mexico in 2018.” Excluding these one-off items, net income would have jumped 34% in the nine-month period.
Revenue from port operations went up by 3% to $355.6 million during the third quarter, and by 10% to $1.1 billion during the January to September period.
The global port developer and operator said total consolidated throughput rose 5% to 2,548,175 twenty-foot equivalent units (TEUs) in the quarter ending September, bringing the nine-month tally 6% higher to 7,590,090 TEUs in the first nine months.
Consolidated financing charges and other expenses jumped 7% to $95.2 million on higher debt issue costs.
“ICTSI has continued to deliver strong financial performance driven by organic volume growth, diligent cost management, and the continued ramp up of newer terminals. Positive progress has been made across the business which in part has been enabled by the prudent investments we make in our brownfield terminals.
While we remain conscious of the current geopolitical trade tensions, we are well-positioned to deliver value for all our stakeholders,” Enrique K. Razon, Jr., chairman and president of ICTSI, was quoted as saying in a statement.
The company said it spent $177.7 million out of the $380-million capital expenditure budget as of end-September.