Terminal Start-Up Costs Put Pressure on ICTSI’s Income
- Business & Finance
Manila-based International Container Terminal Services, Inc. (ICTSI) has seen its net income drop in the first half of 2018 due to the start-up costs of the new terminals in Papua New Guinea and Australia.
The company’s income for the sic-month period ended June 30, 2018 decreased by 6 percent to USD 97.7 million, compared to the USD 103.6 million earned in the same period last year.
Revenue reached USD 661.8 million, representing a rise of 10 percent over the USD 603.7 million reported in the first half of 2017. ICTSI handled consolidated volume of 4.71 million TEUs in the first six months of 2018, 4 percent more than the 4.54 million TEUs handled in the same period in 2017.
The increase in volume was primarily due to the robust global trade activities particularly in the emerging markets, continuing volume growth at most terminals and the contribution of the new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, volume increased by one percent.
For the second quarter of 2018, ICTSI’s consolidated net income attributable to equity holders was up 3 percent from USD 51.9 million in 2017 to USD 53.6 million, while revenue increased 10 percent from USD 306.5 million to USD 336.4 million year-on-year.
Total consolidated throughput for the quarter was five percent higher at 2.38 million TEUs compared to 2.27 million TEUs in 2017.