ICTSI cuts earnings due to new accounting rule

MANILA, Philippines - Port operator International Container Terminal Services Inc. said its net income for the quarter ending September slipped as it adopted a new international accounting rule covering its concession agreement. In a report to regulators, ICTSI said its bottomline dipped 2.06 percent to P688.728 million from last year's P703.231 million. “Both the 2007 and 2008 results reflect the adoption on January 1, 2008 (and restatement of 2007) of IFRIC Interpretation 12-Accounting for Service Concession Agreements and include an associated net unrealized foreign exchange gain of P64 million in the third quarter of 2007 and a net unrealized foreign exchange loss of P43 million in the same quarter of 2008," the company said. IFRIC refers to the International Financial Reporting Interpretation Committee 12, a provision for concession agreements, a vital part of the company’s business. ICTSI currently has 16 such agreements with governments of countries it operates in. Excluding the impact of IFRIC 12, third quarter net income attributable to equity holders would have been P643 million in 2007 and P751 million in 2008, an increase of 17 percent, the company said. For the nine months ending September 30, net income grew 12 percent to P2.26 billion. “The first nine month’s net income results include a net unrealized foreign exchange gain of P373 million in 2007 and a net unrealized foreign exchange loss of P208 million in 2008 resulting from the adoption of IFRIC 12," the company said. Without IFRIC 12, the net income for the period would have been P1.7 billion in 2007 and P2.41 billion in 2008, an increase of 42 percent. - GMANews.TV