ICTSI net profit down 6% in 1st half

Businessman Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) announced lower profits in the first half of 2018, mainly on start-up costs for new projects in Papua New Guinea and Australia.

ICTSI, a global player in container port operations, said net income from January to June this year was lower by 6 percent to $97.7 million.

This was pulled down by startup costs and a $7.5-million nonrecurring gain on the termination of the subconcession agreement in Nigeria last year. Without nonrecurring gains, ICTSI said profit would have declined by 1 percent.

The company signaled that its overall business remained healthy, with revenues up 10 percent to $661.8 million in the first half. Earnings before interest, taxes, depreciation and amortization (Ebitda) was up 3 percent to almost $300 million.

The results came as ICTSI handled consolidated volume of 4.71 million twenty-foot equivalent units (TEUs) in the first six months of 2018—an increase of 4 percent.

“The increase in volume was primarily due to the robust global trade activities particularly in the emerging markets, continuing volume growth at most terminals and the contribution of the new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia,” ICTSI noted.

Volume would have gone up 1 percent when removing the impact of new terminals, it added.

ICTSI also ramped up spending in the first half. Capital expenditures during the period amounted to $134.3 million, higher than the $71 million it had allocated in the first semester of 2017. ICTSI’s capital spending has reached about 35 percent of the $380 million allocated for 2018.