MANILA's global port operator International Container Terminal Services Inc (ICTSI) has posted a 26 per cent year-on-year decline in third quarter net profit to US$34.1 million, drawn on revenues of $268.9 million, which increased 27 per cent.
The net profit decline was caused by start up costs of new terminals, lower capitalised borrowing and a $38.1 million impairment charge on intangible assets at a Buenos Aires terminal. EBITDA was up 17 per cent to $113.9 million during the same period.
For the first nine months of 2014, ICTSI posted a five per cent year on year net profit increase to $135.7 million, drawn on revenues of $779.2 million, an increase of 25 per cent. EBITDA was up 14 per cent to $326.1 million.
Net profit increases in the first nine months reflect higher volumes with the commencement of operations at new terminals in Manzanillo, Mexico (CMSA) and Puerto Cortes, Honduras (OPC).
This was boosted by more favourable volume mix and increased revenues from ancillary services at several existing terminals, said a company statement.
"These positive factors were partially offset by increased depreciation charges and higher levels of interest expense driven by the commencement of commercial operations at CMSA and OPC," he said.
This was boosted by the sale of a subsidiary in Cebu for $13.2 million, the end of a management contract in Kattupalli, India, for $1.9 million and the restructuring of company operations in Yantai, China for $31.8 million.
These gains were reduced by a one-time non-cash charge of US$38.1 million arising from the write-down of intangible assets at a company terminal in Buenos Aires (TECPLATA SA).
"Excluding these non-recurring items, net income for the first nine months would have been US$126.3 million, or two per cent lower than in the prior year period, said the company statement.
ICTSI handled consolidated volume of 5,410,224 TEU for the first nine months, up 17 per cent year on year. The increase was mainly due to the volume generated by Contecon Manzanillo (CMSA) and Operadora Portuaria Centroamericana (OPC), the new Mexican and Honduran terminals.
To this can be added the impact of the consolidation of terminal operations at the Port of Yantai in China and the 23 per cent volume growth in Baltic Container Terminal (BCT) at Gdynia.
Excluding the volume from the two new terminals, organic volume growth would have been flat. The company's seven key terminals in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan, which grew four per cent, and accounted for 70 per cent of the nine month total.
For the quarter, throughput was 15 per cent higher at 1,844,200 TEU year on year. Excluding the volume from new terminals, organic volume growth was minus one per cent, principally because of the congestion caused by the Manila truck ban, since rescinded.
PORTS
15 November 2014 - 08:32
One-time costs cut ICTSI net profit 26pc, but it rises 5pc in first 9 months
MANILA's global port operator International Container Terminal Services Inc (ICTSI) has posted a 26 per cent year-on-year decline in third quarter net profit to US$34.1 million, drawn on revenues of $268.9 million, which increased 27 per cent.
PORTS
15 November 2014 - 08:32
One-time costs cut ICTSI net profit 26pc, but it rises 5pc in first 9 months
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