International Container Terminal Services (ICTSI) has reported consolidated audited financial results for the year ended December 31, 2009, posting full-year revenue from port operations of US$421.7 million, a decrease of nine percent over the US$463.1 million reported last year.

EBITDA of US$175.7 million was down eleven percent from the US$196.4 million earned in 2008; and net income attributable to equity holders of US$54.9 million, ws down 15 percent over the US$64.2 million earned 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 higher depreciation expense associated with continued investment in the Company’s container handling capacities. These negative impacts were partially mitigated by a reduction in cash operating expenses.    

“2009 marked the first full year decline in global trade volumes since the end of the Second World War, and ICTSI’s annual results were affected by this difficult environment,” Enrique K Razon Jr., ICTSI Chairman and President, said.

“We managed to control our costs well and limit the negative impact of volume declines. The second half of the year was notably better than the first with the fourth quarter, showing the first year-over-year growth in volumes since the third quarter of 2008.”

ICTSI’s consolidated volume for the full-year was five percent lower at 3.5 million TEU compared with the 3.7 million TEU in the same period in 2008. Volumes in the fourth quarter were over one million TEU, a seven percent improvement versus the 957,919TEU handled in the same period in 2008.

Throughput from the company’s container terminal operations in Asia, comprising terminals in the Philippines, Indonesia, Japan, and China, increased by three percent to 2.2 million TEU in 2009, from 2.18 million TEU in the same period in 2008.

The increase in volume was mainly due to a 23 percent volume increase handled by YRDICTL (Yantai Rising Dragon International Container Terminal), a 16 percent increase at DIPSSCOR (Davao Integrated Port and Stevedoring Services Corp.), and the additional volume generated by the company’s new terminals in the Philippines, MICTSI (Mindanao International Container Services) and SCIPSI (South Cotabato Integrated Port Services).

Excluding the new terminals, volume of the group’s Asian ports would have declined by three percent year-on-year mainly due to the eight percent contraction in volume at the MICT (Manila International Container Terminal).

ICTSI’s container terminal operations in Asia accounted for 63 percent of consolidated volumes for the year compared to 58 percent in 2008.

Volume from the group’s Americas container terminals, comprised of Brazil and Ecuador operations, was relatively flat, achieving 876,200TEU for full-year 2009 compared to 884,596TEU in 2008.

The reason for the minimal decrease in throughput was due primarily to the contraction in volume at TSSA (Tecon Suape) in Northern Brazil.

Volume at CGSA (Contecon Guayaquil) in Ecuador, however, increased by six percent due to the growth related to the containerisation of banana exports. The share of the container volume from the Americas slightly grew, from 24 percent in 2008 to 25 percent in 2009.

The company’s Europe, Middle East, and Africa (EMEA) operations, comprised of terminals in Poland, Madagascar, Syria, and Georgia, experienced the biggest drop in throughput with a decrease of 36 percent to 430,132TEU in 2009, compared with 668,766TEU for the same period in 2008.

EMEA accounted for twelve percent of the group’s consolidated volume in 2009, a decrease from 18 percent in 2008.

The large drop in throughput was mainly due to volume contractions experienced at BCT (Baltic Container Terminal) and BICT (Batumi International Container Terminal). BCT’s volume declined by 49 percent, while BICT’s volume decreased by 80 percent year-on-year.  

Volumes at MICTSL in Madagascar declined by a more modest three percent, and TICT (Tartous International Container Terminal) reported growth of 53 percent in 2009.

Full year gross revenues from port operations decreased by nine percent to US$421.7 million, from the US$463.1 million reported last year due largely to the lower volume brought about by the decline in global trade. This includes the lower revenue contribution from the group’s five key terminal operations in Manila, Brazil, Poland, Ecuador, and Madagascar, which decreased by twelve percent, from US$428.9 million in 2008 to US$378.1 million in 2009.  

Consolidated yield per TEU for the full-year dropped by four percent to US$119, from US$124 for the full-year 2008 mainly due to the currency weakness relative to the US dollar in countries where the group operates in.   

Revenue contribution from container terminal operations in Asia decreased two percent, from US$219.1 million in 2008 to US$213.8 million in 2009. The drop in gross revenue is mainly due to the drop in volume at the MICT and a weaker Philippine peso versus the US dollar in 2009 compared with 2008. Asian port operations contributed 51 percent to ICTSI’s full year consolidated gross revenues.

Full year revenue contribution from container terminal operations in the Americas was two percent higher for the full year 2009 at US$147.4 million compared with US$144.9 million in 2008.

The increase in gross revenue mainly resulted from the double-digit growth posted by CGSA for the year. Revenue contribution from the company’s ports in the Americas equalled 35 percent of ICTSI’s full year consolidated gross revenues.  

The group’s Europe, Middle East, and Africa (EMEA) operations, which accounted for 14 percent of the company’s revenue for the year, fell 39 percent, from US$99 million in 2008 to US$60.5 million in 2009. The revenue contribution decline from the EMEA segment was principally due to the decline in revenues in the company’s terminals in Poland, Madagascar, and Georgia.  

Total consolidated cash operating expenses for the year decreased nine percent to US$185.2 million, from US$203.8 million in the same period in 2008 due principally to the cost containment measures successfully implemented by all ICTSI’s terminals and cost centres.  

The decrease in manpower, fuel, equipment, and utilities consumptions is related to the volume contraction and the impact of cost containment measures implemented across all terminals was also a factor for the decrease in cash operating expenses.   

Consolidated EBITDA declined eleven percent to US$175.7 million in 2009, from US$196.4 million in 2008 mainly due to the volume contraction resulting from the global economic slump and the unfavourable volume and revenue mix in 2009. Consolidated EBIDTA margin for full year 2009 was relatively flat at 41.7 percent compared with the 42.4 percent in the same period in 2008.