Pictured: Davao Integrated Port and Stevedoring Services Corp, Philippines – operated by ICTSI
ICTSI’s results are unaudited and all monetary figures are expressed in U.S. dollars.
Revenues, EBITDA and profits
First half 2019 revenues from port operations were US$751.8 million, a 14 percent increase on the US$661.8 million reported for the first half of 2019.
Earnings Before Interest Taxation Depreciation and Amortization (EBITDA) for the first half of 2019 stood at $424.4 million and were 19 percent up on the $356.1 million generated in the prior corresponding period.
Net income attributable to shareholders was US$128.5 million, which grew by a whopping 42 percent on the $90.2 million earned in the prior corresponding period. The company attributed the increase of improved operating income to contributions in Iraq, Australia, the Democratic Republic of Congo and, in the Philippines, Subic.
The good results were partially depressed by a non-recurring gain last year from an interest rate swap at a terminal in Manzanillo, Mexico. Without that interest rate swap last year the company’s increases in profits would have been even higher this year at 47 percent.
The company also discussed its costs and expenses. Consolidated cash expenses were up five percent to $232.0 million owing to higher volumes, increased salaries at certain terminals, I.T. costs and business development expenses. Costs were also incurred at new terminals in Lae and Motukea in Papua New Guinea.
ICTSI’s throughput of ocean shipping containers (measured in twenty foot equivalent units) in the first six months of 2019 stood at just over 5.04 million TEU, seven percent up from the 4.71 million TEU handled in the prior corresponding period.
The company attributed the increase in volumes to increased business at its terminals in Australia and Mexico. Also helping was an improvement in trade at Subic in the Philippines, in the Democratic Republic of the Congo and at Rijeka, Croatia. Adding a further boost to volumes were new shipping lines and services in Gdynia, Poland.
Enrique K. Razon, Jr., President and Chairman of ICTSI said: “ICTSI’s performance in the first half of 2019 has been very positive. The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives. Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely.”
ICTSI was founded in 1987 to bid for the Manila terminal concession, which handled international cargo at the Port of Manila. The Philippine Ports Authority awarded an exclusive concession to ICTSI for 25 years. That concession was later extended for another 25 years to mid-May, 2038.
ICTSI is involved, as an investor or an operator, in 31 terminals around the world across 18 countries. It operates 28 terminals including in Manila along with an inland box terminal at Laguna in the Philippines. It also operates two terminals in Indonesia, and one in each of China, Ecuador, Brazil, Poland, Georgia, Madagascar, Croatia, Pakistan, Mexico, Honduras, Iraq, Argentina, Colombia, the Democratic Republic of the Congo, Australia and Papua New Guinea. It also has several agreements to build ports around the world and to operate another port in Papua New Guinea.