ICTSI 2018 revenues up 10% to $1 Billion
International Container Terminal Services, Inc has reported unaudited consolidated financial results for the first nine months of 2018.
Posting revenue from port operations of $1.0 billion, an increase of 10% over the $918.3 million has been reported in the same period in 2017. Earnings Before Interest, Taxes, Depreciation and Amortization are $462.1 million and 6% higher than the $434.9 million generated in the first three quarters of 2017. The net income attributable to equity holders of $153.3 million was up 3% compared to the $149.3 million earned in the same period last year mainly due to strong operating income from organic terminals; a decrease in the Company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A, its joint venture container terminal project with PSA International Pte Ltd in Buenaventura, Colombia, which decreased from $25.6 million in the first nine months of 2017 to $23.3 million for the same period in 2018 as the company continued to ramp-up container volume; and a $2.8 million non-recurring gain from the pre-termination of interest rate swap related to the pre-payment of the project finance loan at its terminal in Mexico in May 2018.
The increase was tapered by the drag from the new terminals and a $7.5 million non-recurring gain on the termination of the sub-concession agreement in Nigeria in the second quarter of 2017. Excluding the non-recurring gains, consolidated net income attributable to equity holders would have increased by 6%. Diluted earnings per share were 11% lower at $0.052 from $0.058 in the first nine months of 2017 mainly due to additional distributions to holders of senior guaranteed perpetual capital securities issued in January 2018.
For the quarter ended 30th September 2018, revenue from port operations increased 9% from $314.6 million to $344.0 million; EBITDA was 12% higher at $162.6 million from $145.1 million, and net income attributable to equity holders was up 22% from $45.7 million to $55.6 million. Diluted earnings per share for the quarter was 11% higher at $0.019 compared to $0.017 in 2017 due to strong operational results despite the additional distributions to holders of senior guaranteed perpetual capital securities issued in January 2018.
ICTSI handled the consolidated volume of 7,152,392 twenty-foot equivalent units (TEUs) in the first nine months of 2018, 5% more than the 6,836,611 TEUs handled in the same period in 2017. The increase in volume was primarily due to improvement in trade activities at most of the Company’s terminal locations and the contribution of new terminals in Papua New Guinea, and Australia. Excluding the new terminals, the consolidated volume would have increased by 2%.
For the quarter ended 30th September 2018, total consolidated throughput was 6% higher at 2,438,136 TEUs compared to 2,291,207 TEUs in 2017. Excluding the new terminals, the consolidated volume would have increased by 4% in the third quarter of 2018.
Gross revenues from port operations for the first nine months of 2018 increased 10% to $1.0 billion compared to $918.3 million reported in the same period in 2017. The increase in revenues was mainly due to volume growth; new contracts with shipping lines and services; increase in revenues from non-containerized cargoes, storage and ancillary services; and the contribution from the Company’s new terminals in Papua New Guinea and Australia. Excluding the new terminals, consolidated gross revenues would have increased by 5%.
For the third quarter of 2018, gross revenues increased 9% from $314.6 million to $344.0 million. Excluding the new terminals, consolidated gross revenue for the third quarter would have increased by 5%.
Consolidated cash operating expenses in the first three quarters of 2018 was 16% higher at $398.0 million compared to $343.4 million in the same period in 2017. The increase in cash operating expenses was mainly due to the cost contribution of the new terminals in Papua New Guinea and Australia; higher fuel consumption and external yard rental as a result of an increase in volume; and increase in prices of fuel and higher repairs and maintenance at certain terminals. The increase was tapered by the favourable translation impact of Philippine Peso and BRL expenses at the various terminals in the Philippines and in Brazil, respectively. Excluding the new terminals, consolidated cash operating expenses would have increased by only 4% in the first nine months of 2018. For the quarter ended 30th September 2018, total cash operating expenses of the Group increased by 9% to $132.1 million in 2018 from $121.7 million in 2017.
Consolidated EBITDA for the first nine months of 2018 increased 6% to $462.1 million from $434.9 million in 2017 mainly due to strong revenue growth in Papua New Guinea, tapered by higher fixed port lease expense at Melbourne, Australia. Consequently, EBITDA margin decreased from 47% in the first nine months of 2017 to 46% in the same period in 2018.
Consolidated EBITDA for the third quarter of 2018 increased by 12% to $162.6 million from $145.1 million in the same period in 2017. EBITDA margin for the quarter increased from 46% in 2017 to 47% in 2018. Consolidated financing charges and other expenses for the first three quarters increased 3% from $86.9 million in 2017 to $89.2 million in 2018 primarily due to lower capitalized borrowing cost on qualifying assets.
Capital expenditures excluding capitalized borrowing costs for the first nine months of 2018 amounted to $196.4 million, approximately 52% of the $380.0 million capital expenditures budget for the full year 2018. The established budget is mainly allocated for the capacity expansion in its terminal operations in Mexico and Iraq; continuing rehabilitation and development of the Company’s container terminal in Honduras; procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea; and the completion of its new barge terminal project in Cavite City, Philippines.
ICTSI is widely acknowledged to be a leading global developer, manager and operator of container terminals in the 50,000 to three million TEU/year range. ICTSI has an experience record that spans six continents and continues to pursue container terminal opportunities around the world.