ICTSI NET INCOME SURGES
International Container Terminal Services (ICTSI) net income rises 32.8%, translating to US$130.530 million in 2011 from $98,276 in 2010. This growth is attributed to the upsurge in port revenues helped by inclusion of ICTSI Oregon and Adriatic Container Gate Terminal (AGCT). ICTSI says the higher net income attributable to equity holders was also boosted by the one-time gain on sale of 16.79% ownership stake in Portek International last year as well as lower financing charges and lower effective tax rate.
In 2010, ICTSI sold its 9.54% ownership stake in Subic Shipyard and Engineering and 8.56% ownership in Consort Land that accelerated debt issuance cost related to the company’s refinancing exercise. This also wrote-down the carrying value of certain property assets related to the company’s greenfield project in Buenaventura, Colombia. “Excluding the effect of non-recurring income and charges in both 2011 and 2010, net income attributable to equity holders in 2011 would have been US$124.4 million, 35% higher than the US$92.3 million in 2010,” ICTSI says. Consolidated gross revenues from port operations went up by 26.1% to US$664.8 million from US$527.1 million in 2010. ICTSI says factors that contributed to revenue growth were favorable volume mix, mainly import and export-laden containers. It was able to get new customers, and collect higher storage revenues. It also notes the inclusion of ICTSI Oregon and AGCT to the Group contributed to the increase in gross revenues. AGCT handled 98,675 TEUs to the Group’s throughput for the year, after taking over the operations of the container terminal in Rijeka, Croatia only last April 15, 2011. ICTSI Oregon assumed the control and responsibility of the container terminal and breakbulk steel yard at Terminal 6 of the Port of Portland in February last year. The Container terminal operations in the Americas generated revenues US$284.1 million in 2011, 48% higher than the US$192.1 million in 2010. The increase
in revenues in this segment was due to the revenues generated by Portland and the robust 30% and 34% revenue growth in the company’s Brazil and Ecuador operations, respectively. Revenues from the company’s ports in the Americas contributed 43% to ICTSI’s 2011 consolidated gross revenues. “Excluding the revenues from the newly acquired terminals, organic revenue growth was still at an impressive 19%,” it says. Revenue contribution from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 85% of consolidated revenues in 2011, increased 19% to US$565.6 million from US$476.5 million. Meanwhile, Asia posted an 11% increase to U$302.6 million from US$273.6 million. In the Philippines, the terminals in Davao and Cagayan de Oro and in Yantai, China, registered exceptional revenue growths of 50%, 22% and 38%, respectively. Port operations in Asia accounted for 46% of consolidated gross revenues. Container terminal operations in Europe, Middle East and Africa (EMEA), which accounted for 12% of the company’s revenue in 2011, registered strong growth of 27% to US$78.1 million in 2011 from US$61.5 million in 2010. The increase in revenues in EMEA was mainly due to the company’s terminals in
Poland and Georgia, which posted 17% and 117% higher revenues, respectively, and the revenues from the new terminal operations in Croatia. ICTSI handled consolidated volume of 5.233 million twenty-foot equivalent units (TEUs) up 25% from 4.202 million TEUs handled in 2010 brought by the continued upturn in international trade, particularly in markets where ICTSI’s ports are located. Without the volume from the two latest port acquisitions in Portland, Oregon, USA and Rijeka, Croatia, organic volume growth was at an impressive 18%. Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 74% of the Group’s consolidated volume for 2011, increased 18% to 3.867 million TEUs from 3.266 million. ICTSI’s capital expenditure for 2012 is approximately US$550 million, about US$345 million of which is for the greenfield projects in Argentina, Mexico and Colombia, and the balance mainly for civil works, systems improvement, and purchase of major cargo handling equipment at its port operations in Manila (MICT), Croatia (AGCT), Brazil (TSSA) and Ecuador (CGSA). Last year’s capex amounted to US$227.8 million, which was spent mainly for the civil works and major equipment at its existing terminals in Manila, Ecuador and Brazil and port development projects in Argentina and Mexico. MARCH 2012
FUSION OF MARITIME NE WS & VIE WS
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