Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$307.4 million, an increase of nine percent over the US$281.4 million generated in 2011; and net income attributable to equity holders of US$143.2 million, up 10 percent over the US$130.5 million earned in the same period last year.
Recurring net income attributable to equity holders increased 15 percent for the year ended 31 December 2012 after adjusting the previous year’s net income attributable to equity holders to US$124.4 million from the one-time net gain of US$6.1 million from the sale of ICTSI’s 16.79 percent ownership stake in Portek International Limited and a one-time equity tax charge imposed by the Colombian tax authorities on all legal entities and individuals in Colombia.
ICTSI handled consolidated volume of 5,628,021 twenty-foot equivalent units (TEUs) for the year ended 31 December 2012, eight percent more than the 5,233,795 TEUs handled in 2011.
The increase in volume was mainly due to the growth in international and domestic trade, new shipping line customers and routes, continuous containerization of break bulk cargoes, the full period contribution of the Company’s new ports in Portland, Oregon, USA and Rijeka, Croatia, and the consolidation of the volume generated by the Company’s new terminal operations in Jakarta, Indonesia and Karachi, Pakistan. Excluding the volume from the four recent port acquisitions, organic volume growth was at four percent.
Volume from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 73 percent of the Group’s consolidated volume for 2012, increased six percent, from 3,867,407 TEUs to 4,109,082 TEUs.
Gross revenues from port operations for the year ended 31 December 2012 increased 10 percent to US$729.3 million, from the US$664.8 million reported in 2011. The increase in revenues was mainly due to the volume growth on all geographic segments, higher storage revenues and ancillary services, favorable volume mix, new shipping line customers, tariff rate increases in certain key terminals, full year contribution of Portland, Oregon, USA, and Rijeka, Croatia, and the inclusion of the new terminals in Jakarta, Indonesia, Kattupalli, India and Karachi, Pakistan. Excluding the revenues from the newly acquired terminals, organic revenue growth was at six percent.
Revenue contribution from the Group’s six key terminal operations in Manila, Brazil, Poland, Ecuador, Madagascar and China, which accounted for 83 percent of the Group’s consolidated revenues in 2012, increased seven percent, from US$565.6 million to US$602.8 million.
Consolidated cash operating expenses in 2012 grew 10 percent to US$319.0 million, from US$289.3 million in 2011. The increase was mainly driven by higher volume-related expenses (i.e. on-call labor, fuel, power and repairs and maintenance), government-mandated and contracted salary rate increases in certain terminals, higher concession fees in the Company’s operations in Recife, Brazil, higher business development expenses, the full period consolidation of the expenses of the terminals in Portland, Oregon and Rijeka, Croatia and the inclusion of the expenses of the new terminals in Jakarta, Indonesia, and Karachi, Pakistan. Excluding the cash operating expenses of the new terminals, total cash operating expenses would have increased by only six percent. Consolidated EBITDA for 2012 increased nine percent to US$307.4 million, from US$281.4 million in 2011 mainly due to higher revenues from storage and ancillary services, tariff increases in selected key terminals, favorable volume mix, full year contribution from the Company’s terminal operations of Portland, Oregon USA, and Rijeka, Croatia, and the inclusion of the new terminals in Jakarta, Indonesia, Kattupalli, India and Karachi, Pakistan. Consolidated EBITDA margin remained flat at 42 percent.
Consolidated financing charges and other expenses for 2012 was 25 percent lower at US$35.0 million compared to the previous year’s US$46.4 million. The lower consolidated financing charges and other expenses was mainly due to the higher capitalized borrowing cost registered in 2012 as the Company expanded its existing terminals in Manila, Brazil and Ecuador as well as developed new projects in Mexico and Argentina.
ICTSI’s capital expenditure in 2012 amounted to US$465.6 million against a full year capital expenditure budget of US$550.0 million. The capital expenditure was mainly attributed to the construction of a new berth, additional yard space and acquisition of major cargo handling equipment in the Company’s container terminal operation in Manila, capacity expansions in its operations in Ecuador and Brazil, and development of new container terminals in Argentina and Mexico. The Group’s capital expenditure budget for 2013 is approximately US$550.0 million mainly allocated for the completion of the Company’s terminal development projects in Argentina and Mexico and the ramp-up of construction activities in Colombia and Davao, southern Philippines.
ICTSI is a leading port management company involved in the operations and development of 27 marine terminals and port projects in 19 countries worldwide. The company was among the first international terminal operators to take its expertise overseas.