ICTSI reports income of US$ 110.5M for first 9 months

MANILA, Nov. 7 (PNA) — The International Container Terminal Services, Inc. (ICTSI) has reported consolidated unaudited financial results amounting to US$ 110.5 million for the first nine months of the year or 12 percent lower than the US$ 125.1 million reported in the same period in 2008.

The terminal operator also reported that earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to US$ 49.2 million, down 12 percent from the US$ 55.8 million generated in the third quarter of 2008; and net income attributable to equity holders of US$ 14.0 million, a decrease of five percent over the US$ 14.7 million earned in the same period last year.

The lower net income attributable to equity holders was mainly due to lower volume brought about by the decline in global trade, higher interest expense due to higher debt level, and the depreciation of currencies in the countries where ICTSI’s ports are located (Philippine peso, Brazilian reais, Malagasy ariary, Euro) relative to the US dollar in the third quarter of the previous year. Excluding the effects of foreign exchange translation, third quarter net income attributable to equity holders would have remained flat at US$ 14.6 million.

For the nine months ending Sept. 30, 2009, revenue from port operations decreased 15 percent, from US$ 352.3 million to US$ 299.3 million.

EBITDA also decreased 17 percent, from US$ 154.9 million to US$ 129.1 million while net income attributable to equity holders fell 29 percent, from US$ 52.4 million to US$ 37.2 million. Excluding the effects of foreign exchange translation, net income attributable to equity holders should have declined by 21 percent to US$ 41.2 million.

The Philippine peso depreciated against the US dollar by four percent in the third quarter, from the P46.10 average rate in 2008 to P48.08 in the same period in 2009, and 11 percent in the first nine months, from the P43.22 average rate in 2008 to P47.93 in the same period in 2009.

Enrique K. Razon Jr., ICTSI chairman and president, commented: "Global economic conditions continue to be more challenging than in recent years. Third quarter throughput volumes were stronger than the first two quarters, and the benefits of our cost containment efforts also contributed to ICTSI’s improving financial results."

In the first nine months of 2009, ICTSI invested US$ 77.0 million principally to improve operating efficiency and acquire container handling equipment at its port operations in Ecuador as well as to fund the construction of the sixth berth in Manila (MICT).