TIM eMagazine Vol . 3 Issue 2
ICTSI Announces First Quarter 2018 Results
Credit : ictsi . com
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* Net Income at US $ 44.1 million , down 15 %
• Volume and EBITDA rise to new all-time highs
• Revenues grow to new first quarter record
nternational Container Terminal Services , Inc . ( ICTSI ) today reported unaudited consolidated financial results for the quarter ended March 31 , 2018 posting revenue from port operations of US $ 325.4 million , an increase of nine percent over the US $ 297.2 million reported for the same period last year ; Earnings Before Interest , Taxes , Depreciation and Amortization ( EBITDA ) of US $ 147.8 million , one percent higher than the US $ 147.0 million generated in the first quarter of 2017 ; and net income attributable to equity holders of US $ 44.1 million , 15 percent less than the US $ 51.7 million earned in the same period last year due to drag from the new terminals .
ICTSI handled consolidated volume of 2,325,540 twenty-foot equivalent units ( TEUs ) for the quarter ended March 31 , 2018 , two percent more than the 2,272,647 TEUs handled in the same period in 2017 . 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 ICTSI Democratic Republic of Congo ( IDRC ), and contributions from Victoria International Container Terminal and South Pacific International Container Terminal Limited , the Company ’ s new terminals in Melbourne , Australia and Lae , Papua New Guinea , respectively . The increase was tapered by the volume decline in Guayaquil , Ecuador and Karachi , Pakistan . Organically , consolidated volume growth was flat .
Gross revenues from port operations for the quarter-ended March 31 , 2018 increased nine percent to US $ 325.4 million from the US $ 297.2 million reported in the same period in 2017 . The increase in revenues was mainly due to volume growth , tariff rate adjustments at certain terminals , new contracts with shipping lines and services , increased storage and ancillary services , and the contribution from the Company ’ s new terminals in Australia and Papua New Guinea . Excluding the new terminals , consolidated gross revenues increased by six percent .
Consolidated cash operating expenses in the first quarter of 2018 was 24 percent higher at US $ 129.1 million compared to US $ 103.9 million in the same period in 2017 . The increase in cash operating expenses was mainly driven by cost contribution of new terminals in Australia and Papua New Guinea , higher fuel consumption and external yard rental as a result of increase in volume , increase in price of fuel and power rate at certain terminals , and unfavorable translation impact of Mexican Peso expenses at CMSA . The increase was partially tapered by cost optimization measures implemented and favorable translation impact of Philippine Peso expenses at Philippine terminals .
Consolidated EBITDA for the first quarter of 2018 increased one percent to US $ 147.8 million from US $ 147.0 million in 2017 mainly due the strong revenue growth combined with the additional benefits of the on- going group-wide cost optimization initiatives and positive contribution of the new terminal in Papua New Guinea . The growth was tapered by the higher operating expenses mainly due to the fixed port lease expense in Melbourne , Australia . Consequently , EBITDA margin declined to 45 percent in the first quarter of 2018 from 49 percent in the same period in 2017 .
Consolidated financing charges and other expenses for the quarter increased 19 percent from US $ 26.2 million in 2017 to US $ 31.1 million in 2018 primarily due to lower capitalized borrowing cost on qualifying assets .
Capital expenditures excluding capitalized borrowing costs for the first quarter of 2018 amounted to US $ 68.0 million , approximately 18 percent of the US380.0 million capital expenditures budget for the full year 2018 . The established budget is mainly allocated for the capacity expansion in its terminal operations in Manila , Mexico and Iraq ; continuing rehabilitation and development of the Company ’ s container terminal in Honduras ; procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea ; and the completion of its new barge terminal project in Cavite City , Philippines .
ICTSI is widely acknowledged to be a leading global developer , manager and operator of container terminals in the 50,000 to three million TEU / year range . ICTSI has an experience record that spans six continents and continues to pursue container terminal opportunities around the world . ictsi . com
Gross revenues from port operations for the quarter-ended March 31 , 2018 increased nine percent to US $ 325.4 million from the US $ 297.2 million reported in the same period in 2017 . The increase in revenues was mainly due to volume growth , tariff rate adjustments at certain terminals , new contracts with shipping lines and services , increased storage and ancillary services , and the contribution from the Company ’ s new terminals in Australia and Papua New Guinea . Excluding the new terminals , consolidated gross revenues increased by six percent .
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