ICTSI Q1 net profit up 23pc to US$51.7m
MAJOR Philippines port operator International Container Terminal Services, Inc (ICTSI) has announced that net profit in the first quarter of the year soared 22.7 per cent year on year to US$51.7 million compared to $42.2 million earned in the same period last year.
The group's consolidated revenues from port operations increased by 12 per cent to $297.2 million from $266.5 million reported for the same period last year. The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, and the contribution from the company's new terminal (IDRC) along the river bank of the Congo River in Matadi, Republic of Congo. Excluding the new terminal in IDRC, consolidated gross revenues increased by eight per cent.
ICTSI handled consolidated volume of 2.27 million TEU in the first quarter of 2017, 11 percent more than the 2,05 TEU handled in the same period in 2016. The increase in volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq, and the contribution of ICTSI Democratic Republic of Congo (IDRC), the company's new terminal in Matadi, DRC. Excluding the new terminal in DRC, consolidated volume increased by 10 per cent.
Consolidated cash operating expenses for the first three months of 2017 was two per cent higher at $103.9 million compared to $101.5 million in the same period in 2016. The increase in cash operating expenses was mainly due to the increase in variable manpower costs and higher fuel consumption as a result of the increase in throughput.
However, the increase was tapered by the additional benefits of the on-going group-wide cost optimisation initiatives and the favourable translation impact of Philippine Peso and Mexican Peso expenses at the various terminals in the Philippines and in Manzanillo, Mexico, respectively, the company said in a statement.