ICTSI reports strong growth in H1 results

International Container Terminal Services (ICTSI) has announced its financial results for the first half of 2015. It reported revenue from port operations of US$552.1m, an increase of 8% over the first half of 2014. The company also recorded EBITDA of US$237.4m, a 12% rise year-on-year. Accordingly the company’s margin stood at 42.93%.

For the quarter ending June 30, 2015, ICTSI’s revenue from port operations decreased by 2%, to US$256.05m. Q2 EBITDA was 1% higher year-on-year at US$109.83m. As such the company’s Q2 margin stood at 42.89%.

ICTSI handled consolidated volume of 3.88m TEUs in the first six months of 2015, 9% more than the 3.57 TEUs handled in the same period in 2014. The increase in volume was mainly due to the continuing volume ramp-up at Contecon Manzanillo S.A. in Manzanillo, Mexico, and Operadora Portuaria Centroamericana, S.A. de C.V. in Puerto Cortez, Honduras; new shipping line contracts and services at Pakistan International Container Terminal in Karachi, Pakistan; increased demand for services at Subic Bay International Terminal Corp. in Subic Bay, Philippines; the favourable impact of consolidation at Yantai International Container Terminal (YICT) in Yantai, China; and the contribution of the company’s new terminal, ICTSI Iraq, in Basra, which began commercial operation in November 2014. Excluding the volume generated by the new terminal in Iraq, organic volume growth was at 7%.

The company’s eight key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador, Pakistan and Honduras, which accounted for 77% of the group’s consolidated volume in the first half of 2015, a 6% increase compared to the same period last year.

The increase in revenues was mainly due to volume growth at most of the company’s terminals; favourable volume mix and higher ancillary services at SBITC in Subic Bay, Philippines; new shipping line contracts and services at PICT in Karachi, Pakistan; favourable impact of the consolidation of terminal operations in Yantai, China; continuing ramp-up at OPC in Puerto Cortes, Honduras and CMSA in Manzanillo, Mexico; and the revenue contribution of the Company’s new terminal in Basra, Iraq.

However this was partially offset by lower storage and break-bulk revenues; the discontinued vessel calls by two major shipping lines as a result of continuing labour disruption at ICTSI Oregon; weaker short-sea trade and reduced vessel calls at Baltic Container Terminal in Gdynia, Poland; and slow economic activity and negative currency effects.

The increase in recorded EBITDA for the first half of 2015 was mainly due to the strong revenues mentioned above.