International Container Terminal Services (ICTSI) has announced its unaudited consolidated financial results for the quarter ended March 31, 2015. It reported revenue from port operations of US$296.1m, an increase of 19% over Q1 2014. The company also recorded EBITDA of US$127.5m, 23% higher than the first quarter of 2014. Accordingly ICTSI’s margin stood at 43.06%.
The increase in net income was mainly driven by continued margin improvement at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V (OPC) in Puerto Cortes, Honduras, as these two container terminals entered their second full year of commercial operations.
ICTSI handled consolidated volume of 1,982,773 TEUs for the quarter ended March 31, 2015, 13% more than it handled in the same period in 2014. The increase in volume was mainly due to the improvement in international and domestic trade in most of the company’s terminal; new shipping lines and services; continuing volume ramp-up in the company’s terminal operations in Mexico and Honduras; favourable impact of terminal consolidation at Yantai, China; and the contribution of the company’s new terminal in Basra, Iraq which began commercial operation in November 2014. Excluding the volume generated by the new terminal in Iraq, organic volume growth was at 11%. The company’s eight key terminal operations in the Philippines, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77% of the group’s consolidated volume in the first quarter of 2015, grew 8% compared to the same period last year.
The increase in revenues was mainly due to volume growth; higher ancillary services; tariff rate adjustments at certain terminals; new contracts with shipping lines and forwarders; favourable impact of the consolidation of terminal operations at Yantai, China; continuing ramp-up at the terminals in Puerto Cortes, Honduras and Manzanillo, Mexico which posted increases of 67% and 49%, respectively, and the revenue contribution of the company’s new terminal in Basra, Iraq.
Excluding the revenues from the new terminal, organic revenue growth was at 17%. The group’s eight key terminal operations in the Philippines, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras accounted for 82% of the Group’s consolidated revenues in the first quarter of 2015.
EBITDA rose primarily because of volume growth; strong revenue driven by the continuing ramp-up of the terminals in Manzanillo, Mexico and Puerto Cortes, Honduras; favourable impact of the consolidation of terminal operations at Yantai, China; and the positive contribution of the new terminal in Basra, Iraq.
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