International Container Terminal Services Inc. said Wednesday net income rose 5 percent in the first nine months of the year to $149.3 million from $141.9 million year-on-year, boosted by a new port terminal abroad and the one-time gain on the termination of the sub-concession agreement in Lagos, Nigeria.
Excluding the one-time gain on the termination of the sub-concession agreement in Nigeria, consolidated net income attributable to equity holders would have been flat in the first nine months of 2017.
Gross revenues from port operations in the first nine months increased 10 percent to $918.3 million from $835.0 million on 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 terminals in Matadi, DRC and Melbourne, Australia. Excluding the new terminal in DRC and Australia, consolidated gross revenues would have increased by six percent,” ICTSI said.
ICTSI handled consolidated volume of 6,836,611 twenty-foot equivalent units (TEUs) in the first nine months of 2017, six percent more than 6,435,192 TEUs handled in the same period in 2016.
The increase in volume was primarily due to the improvement in global trade activities, especially in the emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and contribution of new terminals in Matadi, DRC and Melbourne, Australia. Excluding the new terminals, consolidated volume would have increased by five percent.
ICTSI’s capital expenditure in the first three quarters of 2017 amounted to $113.5 million, about 47 percent of the $240.0-million budget for the full year of 2017.
The budget is mainly allocated for the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq; the second stage development of the a project in Australia; continuing development of the company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.