Port operator International Container Terminal Services Inc. (ICTSI) saw profits eroding in the first quarter of 2016 due to lower storage and ancillary revenues, unfavorable container volume mix, lower capitalized borrowing cost, higher depreciation and amortization expenses and start-up costs of new terminals and projects.
The listed company controlled by billionaire Enrique K. Razon registered a net profit of $45.1 million (P2.07 billion) during the first quarter of the year, about 21 percent lower than the $56.8 million (P2.6 billion) booked the year before, as revenues declined to $266.5 million, a decrease of 10 percent from the $296.1 million in 2015. The decrease in revenues was mainly due to unfavorable container volume mix, lower storage and ancillary revenues, and unfavorable translation impact of the depreciation of local currencies to the US dollar at certain terminals.