International Container Terminal Services Inc. said on Tuesday recurring net income rose one percent to $174.7 million in 2015 from $172.6 million in 2014.
The country’s biggest port operator said net profit amounted to $58.5 million last year, down 68 percent from $182 million in 2014.
ICTSI blamed the decline in net income last year to non-recurring charges totaling $116.2 million, composed principally of impairment charges of subsidiaries.
Gross revenues from port operations dropped one percent to $1.05 billion last year from $1.06 billion in 2014.
The slight decline in revenues was mainly due to unfavorable container volume mix, lower storage revenues and ancillary services, and the negative foreign exchange translation impact of the Brazilian Reais at Tecon Suape S.A in Recife, Brazil, the euro at Madagascar International Container Terminal Services Ltd. in Toamasina, Madagascar, the Mexican peso at CMSA in Manzanillo, Mexico and the Philippine peso at various Philippine terminals.
ICTSI’s revenues were adversely affected by the discontinued vessel calls by two major shipping lines as a result of a labor disruption at ICTSI Oregon, Inc. in Portland, Oregon, US and weaker short-sea trade and reduced vessel calls at Baltic Container Terminal in Gdynia, Poland.
ICTSI handled consolidated volume of 7.78 million twenty-foot equivalent units last year, five percent more than the 7.44 million TEUs handled in 2014.
The increase in volume was mainly due to the continuing volume ramp-up at Contecon Manzanillo S.A. in Manzanillo, Mexico and Operadora Portuaria Centroamericana, S.A. de C.V. in Puerto Cortes, Honduras.
Excluding the volume from the new terminal in Iraq, organic volume increased three percent.
ICTSI spent $353.3 million last year, 67 percent of the original $530-million capital expenditure budget.
The capital expenditure was mainly for the completion of development at the company’s new container terminals in Mexico, Honduras and Iraq; capacity expansion in its terminal operation in Manila; and to start the development of the new terminals in Democratic Republic of Congo and Australia.
In addition, ICTSI invested $95.1 million in the development of Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia.
The group’s capital expenditure budget for 2016 is about $420 million mainly allocated for the completion of the initial stage of the company’s new container terminals in Democratic Republic of Congo and Iraq, and the continuing development of the company’s project in Australia.
The company allocated about $60 million for its share ICTSI’s joint venture container terminal development project in Buenaventura, Colombia in 2016 to complete the initial phase of the project.