Wednesday, May 14, 2008 ICTSI hits P799 million income for 1st quarter
LARGEST port operator International Container Terminal Services, Inc. (ICTSI) reported that its net income for the first three months of 2008 reached P799 million.
In a disclosure to the Philippine Stock Exchange (PSE), ICTSI said the earnings is higher by 29 percent than what was recorded in 2007 with P618 million during the same period.
In the first three months alone, revenue from port operations hit P4.506 million or 45 percent higher than the P3.118 million reported in the first quarter of 2007.
This was due to the revenues from new port operations in Ecuador, Syria and Georgia and strong organic growth at the company's operations in Brazil, Madagascar and China and Manila and Davao in the Philippines.
"ICTSI has gotten off to a terrific start in 2008. Volumes at our four base terminals in Manila, Poland, Brazil, and Madagascar grew by nine percent in spite of the 12-day strike at our terminal in Poland, and revenues at these same four terminals increased by a healthy 18 percent," said Enrique Razon Jr., chairman and president of ICTSI.
Revenue contribution from the international operations grew by 83 percent from P1.334 million in the first quarter of 2007 to P2.445 million in 2008.
Foreign operations accounted for 54 percent of this quarter's consolidated gross revenue.
On the other hand, revenue contribution from the domestic operations grew by 16 percent from P1.784 million in 2007 to P2.062 million in 2008.
"In addition, we continue to make good progress in improving profitability levels at the five terminals we have acquired last year in China, Syria, Georgia, Ecuador, and Colombia. We continue to see strong volume trends across our portfolio," added Razon.
ICTSI handled consolidated volume of 841,756 twenty-foot equivalent units (TEUs) in the first quarter of 2008, 31 percent higher compared to the 642,475 TEUs handled in the same period in 2007.
Domestic operations accounted for 427,064 TEUs handled, or 51 percent of consolidated volumes, for the period.
Volumes at the company's Manila operation increased by 14 percent from 315,784 TEUs in the first quarter of 2007 to 360,636 TEUs in the same period of 2008, contributing 43 percent of total consolidated volume.
Foreign container volume grew by 53 percent over last year, driven principally by the addition of the company's Ecuador, Syria and Georgia port operations, and exceptionally strong growth at the company's operations in Madagascar and Indonesia.
Foreign container volumes now account for 49 percent of total as compared with 42 percent in the same period last year and 46 percent for the full year 2007.
From January to March 2008, ICTSI invested P1.115 million to expand the handling capacity and improve the operating efficiency of the company's operations in Manila, Brazil and Madagascar and pay for the acquisition and rehabilitation of the new terminals in Ecuador, Syria, Georgia, and Colombia.
The company's estimated consolidated capital expenditure for the full year 2008 is P11.626 million.
This is basically to fund additional handling capacity and operating efficiency improvements in the company's major terminals in Manila, Poland, Brazil, Madagascar, and new terminals in Ecuador, China, Syria, Georgia and Columbia.
The company expects to meet funding requirements for these expenditures from internally generated funds and a committed bank facility. (MSN/Sunnex)
