International terminals boost ICTSI earnings

International Container Terminal Services, Inc (ICTSI) reported a 23 percent jump in first half net profit to US$22.4 million as second quarter earnings increased.

“The solid financial results of the first six months of the year are a result of the good execution of the company’s growth strategy by our business units,” said Enrique Razon, ICTSI chairman and president.

“ICTSI’s four main port operations continue to be the core driver of the company’s sustained growth. Our Manila flagship terminal reported above 10 percent volume growth year-on-year.

“Brazil, Poland and Madagascar delivered very strong financial performance in the second quarter.”

For the six months ended June 30, 2007, ICTSI handled 1,28 million TEUs compared to 917,773 boxes in the same period the previous year.

The company’s port operations in Manila, Poland, Brazil and Madagascar continue to be the main growth driver in the second quarter this year.

The combined revenues from these four port operations grew 12 percent over the second quarter last year, accounting for 71 percent of incremental revenues for the period. New subsidiaries in Indonesia, China and Davao (Philippines) contributed to 27 percent of the revenue growth during the quarter.

The company’s international operations again contributed to the boost in quarterly earnings relative to the prior year period, accounting for 56 percent of this quarter’s consolidated net income, as compared to 39 percent in the second quarter of 2006 and 60 percent for the full year 2006.

The 13 percent year-on-year appreciation of the Philippine peso against the US dollar has significantly dampened the impact of the international operations’ contribution to consolidated earnings in peso terms, given that 66 percent of our gross revenues are in foreign currencies.

“Our recent acquisitions in Indonesia and Davao are already producing good results; these were offset by start-up costs at our new operations in Syria and China.

“For the rest of the year and into 2008, we will focus our efforts in the start-up operations of our new terminals in China, Ecuador and Syria, and the development of a new terminal in Colombia, while continuing to look for new business opportunities in port operations.”

ICTSI handled consolidated volume of 642,274 TEUs during the second quarter, 40 percent higher than 458,370 TEUs handled in the second quarter of 2006.