MANILA -- International Container Terminal Services Inc. said on Tuesday net profit plunged 68% to $58.5 million last year due to one-off charges and lower revenues amid weak global trade.
ICTSI logged non-recurring and non-cash impairment charges amounting to $116.2 million from its concession rights assets in Argentina and Indonesia. Recurring profit, which excludes extraordinary gains and losses, grew 1% to $174.7 million, according to a stock exchange filing.
The lackluster performance even in "recurring" earnings came as revenues dropped 1% to $1.05 billion due to "unfavorable container volume mix, lower storage revenues and ancillary services," the company said.
The Philippine company, which runs around 30 mid-size ports in 20 countries spanning six continents, said the volume of containers it handled last year grew at a slower pace of 5% to 7.78 million twenty-foot equivalent units. The expansion, weaker than the 18% posted in 2014, was driven by terminals in Mexico, Honduras, Pakistan, and Ecuador as well as a new port in Iraq.
The company also said it recorded only $353.5 million in capital expenditure in 2015, approximately 67% of the original $530 million budget.
For 2016, ICTSI has earmarked $420 million in capital expenditure, mainly to complete the first phase of its new container terminals in the Democratic Republic of Congo and Iraq, and the construction of its port in Australia.