ICTSI profit plunges 64pc absorbing special charges, but sales only down 1pc
MANILA's International Container Terminal Services Inc (ICTSI) posted a 64 per cent year-on-year decline in net profit attributable to shareholders to US$58.5 million in 2015, drawn on revenues if $1.06 billion, which slipped one per cent.
Throughput grew five per cent to 7.8 million TEU and operating profit (EBITDA) improved two per cent to $450 million.
The decline in revenues was due to unfavourable container volume mix, lower storage revenues and ancillary services, and the negative foreign exchange translation impact.
In addition, ICTSI’s revenues was adversely affected by the discontinued vessel calls by two major shipping lines as a result of continuing labour disruption at ICTSI Oregon, Inc (IOI) and weaker short-sea trade and reduced vessel calls at Baltic Container Terminal (BCT) in Gdynia, Poland.
In 2015, the company recognised non-recurring charges totalling $116.2 million composed principally of impairment charges on the concession rights assets of Tecplata S.A. (TECPLATA), the Company's terminal in Buenos Aires.
This amounted to $88 million due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina.
Also contributing to the loss was the goodwill of subsidiaries PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, aggregating $26.6 million as a result of lower projected cash flows on its updated business plan than originally expected.
In addition, ICTSI recognised non-recurring gains and charges such as $300,000 gain on the sale of the terminal in Naha, Japan, the recognition of $1.3 million wealth tax charge on its equity in its project in Aguadulce, Colombia, and $600,000 million super tax charge at the terminal in Karachi.
In 2014, the company also recognised gains on the sale of a non-operating subsidiary in Cebu ($13.2 million), the termination of management contract in Kattupalli, India ($1.9 million), the net settlement of the insurance claims in Guayaquil, Ecuador and Gdynia ($600,000).
There was also the gain on the sale of Yantai Rising Dragon International Container Terminal as part of the consolidation of the terminal operations at the Port of Yantai in China ($31.8 million), and the write-down of intangibles at TECPLATA (US$38.1 million).
Excluding these non-recurring gains and charges, recurring net income in 2015 would have been one per cent higher at US$174.7 million compared to the US$172.6 million earned the previous year.
MANILA's International Container Terminal Services Inc (ICTSI) posted a 64 per cent year-on-year decline in net profit attributable to shareholders to US$58.5 million in 2015, drawn on revenues if $1.06 billion, which slipped one per cent.
Throughput grew five per cent to 7.8 million TEU and operating profit (EBITDA) improved two per cent to $450 million.
The decline in revenues was due to unfavourable container volume mix, lower storage revenues and ancillary services, and the negative foreign exchange translation impact.
In addition, ICTSI’s revenues was adversely affected by the discontinued vessel calls by two major shipping lines as a result of continuing labour disruption at ICTSI Oregon, Inc (IOI) and weaker short-sea trade and reduced vessel calls at Baltic Container Terminal (BCT) in Gdynia, Poland.
In 2015, the company recognised non-recurring charges totalling $116.2 million composed principally of impairment charges on the concession rights assets of Tecplata S.A. (TECPLATA), the Company's terminal in Buenos Aires.
This amounted to $88 million due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina.
Also contributing to the loss was the goodwill of subsidiaries PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, aggregating $26.6 million as a result of lower projected cash flows on its updated business plan than originally expected.
In addition, ICTSI recognised non-recurring gains and charges such as $300,000 gain on the sale of the terminal in Naha, Japan, the recognition of $1.3 million wealth tax charge on its equity in its project in Aguadulce, Colombia, and $600,000 million super tax charge at the terminal in Karachi.
In 2014, the company also recognised gains on the sale of a non-operating subsidiary in Cebu ($13.2 million), the termination of management contract in Kattupalli, India ($1.9 million), the net settlement of the insurance claims in Guayaquil, Ecuador and Gdynia ($600,000).
There was also the gain on the sale of Yantai Rising Dragon International Container Terminal as part of the consolidation of the terminal operations at the Port of Yantai in China ($31.8 million), and the write-down of intangibles at TECPLATA (US$38.1 million).
Excluding these non-recurring gains and charges, recurring net income in 2015 would have been one per cent higher at US$174.7 million compared to the US$172.6 million earned the previous year.