ICTSI tops all in August performance among world port operators: Drewry
MANILA's International Container Terminal Services Inc (ICTSI) stood out as the best performer of the 11 port operating companies in a proprietary index, tallying a 38 per cent gain, while Global Ports Investment slumped by 11 per cent, according to London's Drewry Maritime Financial Research.
Excluding outlier Global Ports, the average EBITDA margin of port operators, which Drewry tracks, is 38.1 per cent up from the 37.2 per cent last year.
"ICTSI showed improvement in profitability from port operations. Although DP World advanced on margins, its profitability was substantially augmented by contribution from a non-port acquisition," said Drewry.
"Hence, the shares of ICTSI rallied as DP World's shares stagnated," said the report.
Drewry reckoned investors may have been wary of imminent price competition confronting Global Ports.
"According to the Port of Hamburg, the rival Bronka Port [near St Petersburg] has had a successful first few months in the start-up phase, attracting main lines such as Finnlines and CMA CGM.
"Pricing weakness would have a knock-on effect on the balance sheet of the largest Russian port operator, whose debt is graded Ba3 (non-investment) with a negative outlook by Moody and similarly graded by Fitch with a stable outlook.
Baltic volumes, on the whole, are making steady recovery since February. Thus, Hamburg's HHLA benefitted from increased feeder volumes to Russia in the first half, said the report.
Santos Brasil has successfully migrated to BM&F Bovespa Novo Mercado - an exchange bourse for companies with enhanced corporate governance.
Meanwhile, the Port of Santos experienced a flood in August that halted port operations for 30 hours.
The share price of Malaysia's Westports hit a record high on the back of a strong second quarter, driven by Ocean Three's transshipment volume alignment at the company.
"While 2016 is likely to be a strong year for the company, 2017 might prove to be challenging as two of its largest customers have signed JV terminals with the neighbouring Singapore port," Drewry said.
MANILA's International Container Terminal Services Inc (ICTSI) stood out as the best performer of the 11 port operating companies in a proprietary index, tallying a 38 per cent gain, while Global Ports Investment slumped by 11 per cent, according to London's Drewry Maritime Financial Research.
Excluding outlier Global Ports, the average EBITDA margin of port operators, which Drewry tracks, is 38.1 per cent up from the 37.2 per cent last year.
"ICTSI showed improvement in profitability from port operations. Although DP World advanced on margins, its profitability was substantially augmented by contribution from a non-port acquisition," said Drewry.
"Hence, the shares of ICTSI rallied as DP World's shares stagnated," said the report.
Drewry reckoned investors may have been wary of imminent price competition confronting Global Ports.
"According to the Port of Hamburg, the rival Bronka Port [near St Petersburg] has had a successful first few months in the start-up phase, attracting main lines such as Finnlines and CMA CGM.
"Pricing weakness would have a knock-on effect on the balance sheet of the largest Russian port operator, whose debt is graded Ba3 (non-investment) with a negative outlook by Moody and similarly graded by Fitch with a stable outlook.
Baltic volumes, on the whole, are making steady recovery since February. Thus, Hamburg's HHLA benefitted from increased feeder volumes to Russia in the first half, said the report.
Santos Brasil has successfully migrated to BM&F Bovespa Novo Mercado - an exchange bourse for companies with enhanced corporate governance.
Meanwhile, the Port of Santos experienced a flood in August that halted port operations for 30 hours.
The share price of Malaysia's Westports hit a record high on the back of a strong second quarter, driven by Ocean Three's transshipment volume alignment at the company.
"While 2016 is likely to be a strong year for the company, 2017 might prove to be challenging as two of its largest customers have signed JV terminals with the neighbouring Singapore port," Drewry said.