ICTSI profit expands 26% to P852M

By Zinnia B. Dela Peña
The Philippine Star 08/08/2006

Port operator International Container Terminal Services Inc. (ICTSI) said its net profit grew 26 percent in the first half of the year to P852 million from P677 million the previous year, mainly driven by strong operations overseas.

In the second quarter, ICTSI registered a net income of P477 million on revenues of P2.84 billion compared with P2.6 billion in revenues and P411 million profit in the same period a year earlier.

ICTSI said foreign operations accounted for 39 percent of the second quarter’s consolidated net income.

Enrique K. Razon, ICTSI chairman and chief executive officer, said the company delivered solid results for the quarter, although container handling volumes in Manila "continue to lag behind the levels we experienced in the first half of 2005."

"We are excited about the new terminal opportunities in Makassar, Indonesia and Tartous, Syria, and remain focused on executing the company’s proven international growth strategy," Razon added.

ICTSI handled consolidated volume of 458,370 twenty foot equivalent units (TEUs) during the second quarter, slightly lower compared to the 465,301 TEUs handled in the second quarter of 2005. For the six months ended June 2006, total TEUs handled were 917,773 compared to 908,674 TEUs in 2005.

Domestic operations accounted for 302,704 TEUs handled, or 66 percent of consolidated volumes, for the quarter in review. This is a six percent decline over the volumes handled in last year’s second quarter, as the weak volume trend of the first quarter this year continued to prevail over the Manila operations.

The decline, however, was offset by the seven percent growth of foreign operations to 155,666 TEUs, mainly from the company’s new operations in Madagascar.

Foreign container volume now accounts for 34 percent of total as compared with 31 percent in the second quarter last year.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) improved by four percent to P993 million in the second quarter of 2006, from P958 million in the first quarter of 2005.

For the six months ended June 2006, EBITDA totaled P1.91 billion or an increase of 12 percent from the year earlier figure.

In the second quarter, ICTSI invested P242 million to continue to expand the handling capacity and improve the operating efficiency of the company’s operations in Manila, Poland, Brazil and Madagascar. In May, ICTSI through subsidiary ICTSI Far East Ltd., acquired for $5.6 million 95 percent of PT Makassar Terminal Services (MTS), operator in Makassar Port Container Terminal in South Sulawesi, Indonesia.

To date, the company has invested a total of P946 million in capital expenditures and new acquisition.

ICTSI is widely acknowledged as a leading global developer, manager and operator of container terminals in the 50,000 to 1.5 million TEU/year range. ICTSI has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.

 

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