New Terminals Drag Down ICTSI’s Q1 Profit
Drag from the new terminals has seen Philippine-based terminal operator ICTSI report a lower profit in the first quarter of 2018.
The company said that its net income attributable to equity holders stood at USD 44.1 million, 15 percent less than the USD 51.7 million earned in the same period last year.
The revenue from port operations for the period was 9 pct higher year-on-year reaching USD 325.4 million.
“The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services, increased storage and ancillary services, and the contribution from the company’s new terminals in Australia and Papua New Guinea. Excluding the new terminals, consolidated gross revenues increased by six percent,” the company said.
During the quarter, ICTSI handled a total of 2.3 million TEUs, up by 2 pct from the same period in 2017.
The increase in volume was ascribed to continuous improvement in global trade activities, particularly in the emerging markets. In addition, a considerable contribution was made by continuing ramp-up at ICTSI Iraq, and ICTSI Democratic Republic of Congo (IDRC), as well as from the company’s new terminals, Victoria International Container Terminal in Melbourne and South Pacific International Container Terminal Limited, Papua New Guinea.
The increase was tapered by the volume decline in Guayaquil, Ecuador and Karachi, Pakistan. Organically, consolidated volume growth was flat, ICTSI said.