ICTSI 1Q2017 Net Income Up 23% to US$51.7M [Seaport]
Throughput grew 11% to 2.3 million TEUs
Revenues increased 12% to US$297.2 million
EBITDA improved 21% to US$147.0 million
International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the quarter ended March 31, 2017 posting revenue from port operations of US$297.2 million, an increase of 12 percent over the US$266.5 million reported for the same period last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$147.0 million, 21 percent higher than the US$121.9 million generated in the first quarter of 2016; and net income attributable to equity holders of US$51.7 million, 23 percent more than the US$42.2 million earned in the same period last year due to strong operating income tapered by higher depreciation charges, higher interest and financing charges, and an increase in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, which increased from US$2.1 million in the first quarter of 2016 to US$7.4 million for the same period in 2017 as the company started full commercial operations.
ICTSI handled consolidated volume of 2,272,647 twenty-foot equivalent units (TEUs) in the first quarter of 2017, 11 percent more than the 2,053,639 TEUs handled in the same period in 2016. The increase in volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq, and the contribution of ICTSI Democratic Republic of Congo (IDRC), the Company’s new terminal in Matadi, DRC. Excluding the new terminal in DRC, consolidated volume increased by 10 percent.
Gross revenues from port operations for the quarter ended March 31, 2017 increased 12 percent to US$297.2 million from the US$266.5 million reported in the same period in 2016. 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 terminal in Matadi, DRC. Excluding the new terminal in DRC, consolidated gross revenues increased by eight percent.
Consolidated cash operating expenses for the first three months of 2017 was two percent higher at US$103.9 million compared to US$101.5 million in the same period in 2016. The increase in cash operating expenses was mainly driven by the increase in variable manpower costs and higher fuel consumption as a result of the increase in throughput; higher fuel prices and power rate adjustments at certain terminals; unfavorable translation impact of the BRL appreciation at Suape, Brazil; and cost contribution of the new terminals in Matadi, DRC and Melbourne, Australia. The increase was tapered by the additional benefits of the on-going group-wide cost optimization initiatives and the favorable translation impact of Philippine Peso and Mexican Peso expenses at the various terminals in the Philippines and in Manzanillo, Mexico, respectively.
Consolidated EBITDA in the first quarter of 2017 increased 21 percent to US$147.0 million from US$121.9 million in 2016 mainly due strong volume and revenue growth combined with the additional benefits of the on-going group-wide cost optimization initiatives and positive contribution of the new terminal in Matadi, DRC. Consequently, EBITDA margin improved to 49 percent in the first quarter of 2017 from 46 percent in the same period in 2016.
Consolidated financing charges and other expenses for the quarter increased 25 percent from US$20.9 million in 2016 to US$26.2 million in 2017 primarily due to higher average loan balance tapered by the higher capitalized borrowing cost.
Capital expenditure in the first quarter of 2017 amounted to US$33.0 million, approximately 14 percent of the US240.0 million capital expenditure budget for the full year 2017. The established 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 Company’s project in Australia; continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila. In addition, ICTSI invested US$9.1 million in SPIA in Buenaventura, Colombia. The Company allocated approximately US$25.0 million for its share in 2017 to complete the initial phase of its joint venture container terminal project with PSA International.
ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans four continents and continues to pursue container terminal opportunities around the world.
Posted at 19:04 パーマリンク
Port efficiency to attract more shipping lines, port users to Subic [Seaport]
International Container Terminal Services, Inc. (ICTSI) continues to make a strong case for the Subic Bay Freeport as a key international trading gateway of the Philippines after achieving productivity levels at par with that of the Manila International Container Terminal (MICT).
Two Panamax quay cranes at the New Container Terminal (NCT) 1 recently handled close to 400 twenty foot equivalent units (TEU) with each crane averaging 40 and 33 moves per hour, respectively. The productivity levels were achieved during the inaugural call of Evergreen Marine Corp.’s 1,440-TEU boxship Cape Fulmar.
The call signaled the start of Evergreen’s South Korea-Taiwan-Philippines (KTP) service, a new route to facilitate improving regional trade between the three economies. The service plies the ports of Incheon and Kwang Yang, South Korea; Kaohsiung, Taiwan; and Batangas, Manila and Subic Bay, Philippines. Aside from Cape Fulmar, 1,440-TEU boxship Cape Faro is also chartered to the weekly service.
“It was a great effort and a big win for ICTSI’s Subic operations. This goes to show that Subic is at par with the productivity levels in MICT. We are continuously working on improving our services to attract more shipping lines, and for northern and central Luzon businesses to use the container terminals in Subic,” says Roberto Locsin, Subic Bay International Terminal Corp. (SBITC) President.
He adds: “As a national port operator, ICTSI ensures that each Philippine marine terminal under its helm remains competitive. Subic, in particular, was developed not only for the industrial locators of the Freeport but for the local markets in Luzon north of Metro Manila.”
MICT, ICTSI’s flagship terminal, primarily serves the Metro Manila market and its adjacent markets, where most of the economic activities of the country happen being the country's capital. “Metro Manila as a market will continue to grow,” says Mr. Locsin.
“But, as the northern and central Luzon countryside develops driven by industrial centers like Subic, Clark, Bataan and Tarlac also continuing to grow, the Subic Bay Freeport is that gateway ready to link its products to global markets. We have the equipment and facilities. We carry ICTSI's brand of service and efficiency,” he adds.
ICTSI has positioned itself in Subic in anticipation of growing local markets north of Metro Manila. In 2007, under the Subic Port Development Plan, the Subic Bay Metropolitan Authority awarded SBITC the concession for NCT 1. In 2011, under the plan’s second phase, another ICTSI subsidiary, ICTSI Subic, Inc., was awarded the concession to operate NCT 2.
Increasing volumes in Subic enabled ICTSI to streamline and interface the operations of NCT 1 and 2. The merged operation has been serving the growing markets of the region, alongside the continued support to facilitate the box market of Metro Manila.
Posted at 19:01 パーマリンク
ICTSI, PSA inaugurate joint venture terminal in Aguadulce, Colombia [Seaport]
International Container Terminal Services, Inc. (ICTSI) and PSA International (PSA) have formally opened Puerto Aguadulce, a joint venture terminal in the Port of Buenaventura, Colombia with His Excellency, Juan Manuel Santos, President of the Republic of Colombia, leading the inaugural rites.
The first phase of the USD550 million world class multi-user container and bulk handling facility can handle mega container vessels with capacities of up to 18,000 TEUs, and is seen to further spur the Colombian economy. Puerto Aguadulce is operated by Sociedad Puerto Industrial de Aguadulce, the joint venture company of ICTSI and PSA.
"It is very important to have dreams and is more satisfying when they become reality. This is what we are doing today to inaugurate this port," says President Santos.
He adds: “We are stimulating foreign trade with many countries to exploit the full potential we have. We have the vision to have a competitive country, to be a food pantry for the world and this port will be a very important link. All that awaits you is more business, more profit, because if you do well, the country is doing well.”
President Santos was joined by Vice President Germán Vargas Lleras, Valle del Cauca Governor Dilian Francisca Toro, and Buenaventura Mayor Eliécer Arboleda. Other important guests include port sector and infrastructure leaders, Compas shareholders and executives, and host community leaders.
“We have always been bullish on Colombia and believe that its economy is a key driver in pushing the Latin American market into the future. Exports from Colombia such as coffee and sugar remain in high demand. We at ICTSI want to be a partner in the country’s economic journey by offering top-notch port equipment, facilities and technology to facilitate this growing economy. This new terminal is also a positive proof of the successful collaboration between foreign port partners and local stakeholders. For that we would like to thank the government for entrusting us with the privilege to build a vital facility,” says Martin O’Neil, ICTSI Executive Vice President.
“The opening of Puerto Aguadulce marks an important milestone not only in Buenaventura but in the entire Colombia. The terminal is ideally positioned to be a hub for international trade. It was built and designed to meet the current and future requirements of customers and partners, with whom we are going to work with to offer high levels of services and productivity,” says Miguel Abisambra, Puerto Aguadulce CEO.
One of the leading port groups in the world, PSA brings to the table its complementary strengths and years of industry experience to ensure the success of the Aguadulce Port Project. ICTSI and PSA signed the agreement to jointly develop, construct and operate the terminal and its ancillary facilities back in September 2013.
The terminal had its soft opening late in November last year, servicing its first container vessel – the MSC Sasha with outstanding productivity levels.
Puerto Aguadulce features state of the art cargo handling equipment, leading edge operating systems and top-of-the-line facilities and infrastructure. Equipped with neo post-Panamax quay cranes and the latest in port technology, the terminal can service new generation container vessels with capacities of up to 18,000 TEUs.
Under its first phase development, the terminal has an annual handling capacity of 550,000 TEUs operating two container berths. The bulk terminal, on the other hand, will have a capacity of two million tons annually.
It is strategically located in the port city of Buenaventura, Colombia’s sole maritime trading gateway to the Pacific, and the first port of call for southbound services to and from the West Coast of South America.
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. (www.ictsi.com)
PSA International is one of the leading global port groups. PSA participates in port projects across Asia, Europe and the Americas with flagship operations in Singapore and Antwerp. Employing the finest talents in the industry, PSA delivers reliable and best-in-class service to its customers and develops win-win relationships with its partners. As the port operator of choice in the world's gateway hubs, PSA is “The World's Port of Call”. PSA International has been voted “Best Global Container Terminal Operating Company” for eight years at the Asian Freight & Supply Chain Awards since 2005.
Posted at 19:06 パーマリンク
ICTSI Net Income more than triple to US$180.0M [Seaport]
Throughput up 12% to 8.7 million TEUs
Revenues increased 7% to US$1.128 billion
EBITDA improved 17% to US$525.1 million
International Container Terminal Services, Inc. (ICTSI) reported audited consolidated financial results for the year ended December 31, 2016 posting revenue from port operations of US$1.128 billion, seven percent higher compared to US$1.051 billion last year, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$525.1 million, 17 percent better than the US$450.0 million generated the previous year, and reported net income attributable to equity holders of US$180.0 million, up 207 percent compared to the US$58.5 million earned in 2015. Fully diluted earnings per share for the period surged 491 percent to US$0.065 from US$0.011 in 2015.
In 2016, the Company recognized a non-recurring charge of US$23.4 million on the pre-termination of the lease agreement at ICTSI Oregon, Inc., the Company’s terminal in Oregon, USA. In 2015, the Company recognized non-recurring items such as the gain on the sale of the terminal in Naha, Japan, impairment charges on the concession rights assets of Tecplata S.A. in Buenos Aires, Argentina, and the goodwill of PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, Indonesia, of US$0.3 million, US$88.0 million and US$26.6 million, respectively. Excluding these non-recurring items, recurring net income would have increased 18 percent to US$203.4 million from US$172.8 million in 2015.
ICTSI handled consolidated volume of 8,689,363 twenty-foot equivalent units (TEUs) for the year ended December 31, 2016, 12 percent more than the 7,775,993 TEUs handled in 2015. The increase in volume was mainly due to continuing volume ramp-up at ICTSI Iraq, the Company’s terminal in Umm Qasr, Iraq; new shipping lines and services at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico, Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador, and the terminals in Indonesia; and improvement in trade activities in Madagascar International Container Terminal Services, Ltd. (MICTSL) in Toamasina, Madagascar, Adriatic Gate Container Terminal (AGCT) in Rijeka, Croatia and in most of the Philippine terminals. For the quarter ended December 31, 2016, total consolidated throughput was 12 percent higher at 2,254,171 TEUs compared to 2,007,745 TEUs in the same period in 2015.
Gross revenues from port operations increased seven percent in 2016 to US$1.128 billion from US$1.051 billion the previous year. The increase in revenues was mainly due to improvement in trade activities at most of the Philippine terminals resulting to volume growth; new contracts with shipping lines and services at the terminals in Indonesia, Pakistan, Ecuador and Mexico; tariff rate adjustments at certain terminals; increase in storage and special services revenues at the terminal in Honduras; favorable container-volume mix at most of the Company’s terminals; and continuing ramp-up at ICTSI Iraq. The increase in revenue was tapered by lower storage and non-containerized revenues at Tecon Suape S.A. (TSSA) in Recife, Brazil, weaker short-sea trade and reduced vessel calls at Baltic Container Terminal Ltd. (BCT) in Gdynia, Poland, discontinued vessel calls at ICTSI Oregon in the USA, and unfavorable translation brought about by the four percent depreciation of the Philippine peso and 18 percent depreciation of the Mexican peso. For the quarter ended December 31, 2016, total consolidated gross revenue was 13 percent higher at US$293.4 million compared to US$259.3 million in the same period in 2015.
Total cash operating expenses of the Group decreased by three percent from US$432.3 million in 2015 to US$419.6 million in 2016 mainly due to improved operational efficiencies resulting to lower costs on repairs and maintenance, effective cost optimization initiatives, favorable translation impact of local currency expenses, and lower variable cost at ICTSI Oregon. The decreased was tapered by higher variable manpower costs, higher fuel and power consumption brought about by the volume increase, and cost contribution of new terminals in Argentina, Democratic Republic of Congo and Australia.
Consolidated EBITDA increased 17 percent to US$525.1 million in 2016 from US$450.0 million the previous year mainly due to the continuing ramp-up and further improvement in operating efficiencies at the terminals in Iraq and Mexico; and strong operating results from the company’s terminals in Madagascar, Honduras, Indonesia and the Philippines. Consolidated EBITDA margin continued to improve to 47 percent in 2016 from 43 percent the year earlier.
Consolidated financing charges and other expenses in 2016 was 39 percent lower to US$111.4 million from US$183.5 million in 2015 mainly due to lower non-recurring charges. In 2016, the Company recognized a non-recurring charge of US$23.4 million on the pre-termination of the lease agreement at ICTSI Oregon, Inc. In 2015, the Company recognized impairment charges on the concession rights assets of Tecplata S.A. in Buenos Aires, Argentina, and the goodwill of PT ICTSI Jasa Prima Tbk and PT OJA in Jakarta, Indonesia, of US$88.0 million and US$26.6 million respectively. Excluding these non-recurring charges, consolidated financing charges and other expenses would have increased 27 percent to US$88.0 million from US$69.0 million in 2015 due to lower capitalized borrowing cost and higher interest expense.
Capital expenditures for 2016 amounted to US$391.9 million. Excluding capitalized borrowing costs and other expenses, capital expenditures amounted to US$353.5 million, approximately 84% of the US$420.0 million capital expenditure budget for the full year 2016. The capital expenditure was mainly to fund the initial development stage of the Company’s greenfield projects in Australia, Democratic Republic of Congo and Iraq; the continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila and Ecuador. In addition, ICTSI invested US$41.2 million or 69 percent of its US$60.0 million budget in the development of Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia. The Group’s capital expenditure budget for 2017 is approximately US$240.0 million 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 Company’s project in Australia; continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila. With regard to ICTSI’s joint venture container terminal development project in Buenaventura, Colombia, the Company allocated approximately US$25.0 million for its share in 2017 to complete the initial phase of the project.
ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to 2.5 million TEU/year range. ICTSI has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.
Posted at 19:05 パーマリンク
ICTSI Manila to order mega vessel handling equipment [Seaport]
International Container Terminal Services Inc. (ICTSI) is set to order the most modern equipment that will have the largest vessel handling capability in the Philippines, existing or planned, and at par with those used in major developed markets around the world.
The massive order for the Manila International Container Terminal (MICT) includes five post-Panamax quay cranes capable of servicing up to 13,000-TEU boxships, the largest in the intra-Asia trade. Also on order are 20 rubber tired gantry cranes.
The purchase, along with the construction of another berth, is part of ICTSI’s USD80 million capital equipment program for the MICT.
With a maximum reach of 20 containers across and twin lift rated load capability, the post-Panamax quay cranes are capable of servicing single-ocean box ships, too large to pass through the Panama Canal. The capital equipment program would enable the MICT to service new generation vessels with capacities of up to 13,000 TEUs, setting a new standard for container terminal operation in the country.
“Hitting the two-million mark last year is a clear indication that we need to further expand our operation in response to the direction of the market. We also have to address the growing consolidation trend happening with major carriers that have them deploying larger capacity vessels," says Christian R. Gonzalez, ICTSI Senior Vice President and Regional Head of Asia Pacific and MICT.
The 2 millionth TEU milestone triggered a multi-billion peso capacity improvement commitment with the Philippine Ports Authority (PPA). The program is in line with the projected increase in container movement as a result of an improving Philippine economy despite the global downturn in the container shipping industry.
“We have always been steps ahead of the game in terms of planning. By the way things are looking, there is a legitimate need to invest in equipment and construct an additional berth in the near future. We need to ensure expansion is ahead of the curve in terms of being prepared for an increase in vessel sizes," continues Gonzalez.
The MICT currently has six berths. Two of the new quay cranes will be deployed at Berth 5. Another pair will be deployed at Berths 6 and 7, respectively, while the last crane will be deployed at Berth 3. The first three cranes are scheduled for delivery by 2018, with the remaining two at 2019.
In 2015, ICTSI deployed new-generation reach stackers at the MICT to improve operational efficiency as volume continued to grow. Earlier in 2014, the MICT completed the construction of Yard 7, which added four hectares of yard space to the terminal or roughly 500,000 TEUs, and further extended the terminal’s berth to 1,700 meters. With the recent expansion, MICT’s annual capacity increased to 2.75 million TEUs.
ICTSI has several other projects in the pipeline for its Philippine operation that should pave the way for it to become a complete logistics provider. These include the revival of the rail link between MICT and the recently opened Laguna Gateway Inland Container Terminal in Calamba. It has also recently submitted a proposal to build a roll on-roll off barge terminal in Cavite, south of Metro Manila.
Posted at 17:42 パーマリンク
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