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ICTSI hikes profits with new port operations

abs-cbnNEWS.com | 11/10/2008 7:46 PM

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Publicly listed International Container Terminal Services Inc. (ICTSI) posted a 17 percent jump in profits during the third quarter of the year, driven by new port operations.

In a statement, the company said net profit during July to September amounted to P751 million as against P643 million in the same months last year.

"Despite a worsening global economic climate, ICTSI has delivered solid results for the quarter. We remain cautious concerning the outlook for the global economy and world trade and are taking steps to position ourselves accordingly,” said ICTSI chairman and president Enrique Razon.

New ports

ICTSI handled a consolidated volume of 1.02 million twenty foot equivalent units (TEUs) in the third quarter, bringing the nine-month volume to 2.78 million TEUs.

Domestic operations accounted for 530,463 TEUs or 52 percent of consolidated volume in the third quarter. This represents a 28 percent year-on-year growth, mainly due to a 13 percent volume increase at the Manila International Container Terminal and additional volume from the company’s new port operations in Misamis Oriental, southern Philippines.

Foreign container volume, on the other hand, climbed 23 percent over the same period last year on the back of new port acquisitions in Ecuador, Syria and Georgia, and exceptionally strong growth at the company’s operations in Brazil, Madagascar and China.

Combined revenues from new port operations in Ecuador, Georgia, Syria, and Misamis Oriental in the Philippines accounted for 36 percent of total revenues.

Revenues up 35%

Consolidated gross revenues reached P5.68 billion, up 35 percent from the previous year's P4.21 billion. Earnings before interest, taxes, depreciation and amortization, on the other hand, rose 51 percent to P2.55 billion from P1.72 billion.

During the period in review, ICTSI booked an associated net unrealized foreign exchange gain of P64 million and a foreign exchange loss of P43 million, no thanks to the adoption of a new accounting standard for service concession agreements.

Total cash operating expenses, meanwhile, totaled P6.50 billion, 40 percent higher than the P4.66 billion in 2007.

ICTSI is widely acknowledged as a leading global developer, manager and operator of container terminals, handling 50,000 to 1.5 million TEUs per year. ICTSI, which is headquartered in the Philippines, has a global port network spanning 11 countries in four continents.