ICTSI increases traffic and revenue in 2019

5 March 2020 Throughput increased 5% to 10.2 million TEUsRevenues grew 7% to US$1.5 billionEBITDA improved 10% to US$830.1 million Enrique K. Razon, Jr., Chairman of ICTSI said: “ICTSI delivered a positive performance in 2019 with revenue and EBITDA increasing by 7% and 10%, respectively. Recurring net income was US$259.1 million up 23% compared to the previous year but owing to the one-off non-cash impairment of the concession right assets of Tecplata S.A which we re-valued in light of prolonged difficult economic conditions in Argentina, net income fell. “The outbreak of COVID-19 has had an impact on volumes particularly in Asia and we are closely reviewing developments across the regions in which we operate. Whilst we cannot be certain how long this situation will last; we are seeking to mitigate this impact through rigourous cost control and increasing market share. ICTSI is an agile business and able to act swiftly to ensure the business remains robust during these uncertain times.” International Container Terminal Services, Inc. (ICTSI) today reported audited consolidated financial results for 2019 posting revenue from port operations of US$1.5 billion, an increase of 7% over the US$1.4 billion reported in 2018; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$830.1 million was 10% higher than the US$755.4 million generated in 2018; and Net income attributable to equity holders of to US$100.4 million, down 52% compared to the US$207.5 million earned last year. Diluted earnings per share declined 71% at US$0.020 from US$0.071 in 2018. Excluding these non-recurring gains and charges, recurring net income in 2019 was 23% higher at US$259.1 million compared to the US$210.5 million earned the previous year. In 2019, the Company recognized non-recurring charges totaling US$158.7 million composed principally of impairment charges on the concession rights assets of Tecplata S.A. (TECPLATA), the Company's terminal in Buenos Aires, Argentina, amounting to US$156.0 million due to lower projected cash flows on its updated business plan as a result of the prevailing and challenging economic conditions in Argentina. In addition, the Company also booked a US$2.7 million charge on acceleration of debt issue cost brought about by the partial prepayment of the Company’s Euro-denominated term loan. In 2018, the Company recognized a non-recurring gain of US$2.8 million due to the termination of the interest rate swap brought about by the prepayment of the Project Finance loan in Contecon Manzanillo S.A., the Company’s container terminal in Manzanillo, Mexico and a US$5.8 million non-recurring impairment charge on the goodwill at its terminal in Davao, Philippines. ICTSI handled consolidated volume of 10,178,018 twenty-foot equivalent units (TEU) in 2019, five percent more than the 9,736,621 TEUs handled in 2018. The increase in volume was mainly due to continuing ramp-up at ICTSI’s new terminals in Lae and Motukea in Papua New Guinea and the contribution of the new terminal in Rio de Janeiro in Brazil; improvement in trade activities in Subic, Philippines, Matadi, Democratic Republic of Congo and Basra, Iraq; new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia, Baltic Container Terminal (BCT) in Gdynia Poland, Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia, Batumi International Container Terminal (BICT) in Batumi, Georgia and Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico. Gross revenues from port operations in 2019 increased 7% to US$1.5 billion compared to US$1.4 billion reported in 2018. The increase in revenues was mainly due to volume growth; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services; and the contribution from the Company’s new terminals in Lae and Motukea in Papua New Guinea, and Rio De Janeiro in Brazil. Consolidated cash operating expenses in 2019 was three percent higher at US$464.2 million compared to US$452.2 million in 2018. The increase in cash operating expenses was mainly due to higher volume; government-mandated and contracted salary rate adjustments at certain terminals; unfavorable translation impact of Philippine Peso expenses at Philippine terminals; and the cost contribution of the new terminals in Lae and Motukea in Papua New Guinea and in Rio de Janeiro in Brazil. This was partially tapered by continuous monitoring of cost optimization measures and favorable translation impact of Pakistani Rupee expenses at Karachi, Pakistan, Australian dollar expenses at Melbourne, Australia and Brazilian Reais expenses at Suape, Brazil. Consolidated EBITDA for 2019 increased 10% to US$830.1 million from US$755.4 million in 2018 mainly due to strong revenue growth and minimal cash operating expense increase. Consequently, EBITDA margin increased to 56% in 2019 from 55 percent in 2018. Consolidated financing charges and other expenses for 2019 increased by 121% from US$128.6 million in 2018 to US$284.0 million in 2019 primarily due to the impairment charges at its subsidiary in Buenos Aires, Argentina. Capital expenditures for 2019 excluding capitalized borrowing costs amounted to US$240.8 million, approximately 63% of the US$380.0 million capital expenditures budget for the year. The Group’s capital expenditure budget for 2020 is approximately US$270 million. The estimated capital expenditure budget will be utilized mainly for the ongoing expansion projects at Manila International Container Terminal (MICT) in Manila, Philippines and CMSA in Mexico; yard expansion at IDRC in Democratic Republic of Congo; equipment acquisitions and upgrades; and for maintenance requirements. ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to three million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world. Headquartered and established in 1988 in Manila, Philippines, International Container Terminal Services, Inc. (ICTSI) is in the business of port development, management and operations. As an independent business with no shipping, logistics or consignee-related interests, ICTSI works and transacts transparently with any stakeholder in the port community. ICTSI’s portfolio of terminals and projects spans developed and emerging market economies in the Asia Pacific, the Americas, and Europe, the Middle East and Africa. ICTSI has received global acclaim for its public-private partnerships with governments divesting of their port assets to the private sector. Source: ICTSI

ICTSI increases traffic and revenue in 2019

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ICTSI increases traffic and revenue in 2019

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1.2 tonnes of cocaine seized in Spain’s Algeciras port

Four tonnes of cocaine seized off the Canary Islands

Russia’s ports handled 4.6 mln TEUs in Jan-Oct’24

New Caspian ferry line Turkmenbashi-Olya might finally launch

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Our Expert Analysis

Latest Free Reads

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