ICTSI net profit plunges 52pc despite rises in revenue and box volume
MANILA's International Container Terminal Services Inc (ICTSI) has posted a net profit of US$100
MANILA's International Container Terminal Services Inc (ICTSI) has posted a net profit of US$100.4 million last year, down 52 per cent compared to a net earnings of $207.5 million in 2018.
However, Enrique K Razon, Jr, chairman of ICTSI explained: 'ICTSI delivered a positive performance in 2019 with revenue and ebitad increasing by 7 per cent and 10 per cent, respectively. Recurring net income was $259.1 million up 23 per cent compared to the previous year but owing to the one-off non-cash impairment of the concession right assets of Tecplata S A which we re-valued in light of prolonged difficult economic conditions in Argentina, net income fell.'
Revenue grew 7 per cent to $1.48 billion compared to $1.39 billion in 2018.
ICTSI handled a total of 10.18 million TEU in 2019, five per cent more than the 9.74 million TEU handled in 2018.
The increase in volume was mainly due to continuing ramp-up at ICTSI's new terminals in Lae and Motukea in Papua New Guinea and the contribution of the new terminal in Rio de Janeiro in Brazil; improvement in trade activities in Subic, Philippines, Matadi, Democratic Republic of Congo and Basra, Iraq; new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia, Baltic Container Terminal (BCT) in Gdynia Poland, Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia, Batumi International Container Terminal (BICT) in Batumi, Georgia and Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico, the terminal operator said in a statement.
The chairman pointed out that the outbreak of Covid-19 has had an impact on volumes particularly in Asia.
'We are closely reviewing developments across the regions in which we operate. Whilst we cannot be certain how long this situation will last; we are seeking to mitigate this impact through rigorous cost control and increasing market share. ICTSI is an agile business and able to act swiftly to ensure the business remains robust during these uncertain times,' Mr Razon added.