International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the first nine months of 2018, recording revenues from port operations of $ 1.0 billion, a 10% increase over $ 918, 3 million recorded in the same period of 2017; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US $ 462.1 million, 6% higher than the US $ 434.9 million generated in the first three quarters of 2017; and net income attributable to shareholders of $ 153.3 million, up 3% compared to $ 149.3 million earned in the same period last year, primarily due to strong operating revenues from organic terminals; a decrease in the Company's share in the net loss at Sociedad Puerto Industrial Aguadulce SA (SPIA), its container terminal joint venture project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia, which decreased by US $ 25, 6 million in the first nine months of 2017 to $ 23.3 million in the same period of 2018, as the company continued to increase the volume of containers; and a non-recurring gain of US $ 2.8 million from the pre-termination of the interest rate swap related to the prepayment of the project finance loan at its terminal in Manzanillo, Mexico, in May 2018.
The increase was mitigated by the dragging of the new terminals and a non-recurring gain of $ 7.5 million in the termination of the sub-concession contract in Nigeria in the second quarter of 2017. Excluding non-recurring gains, consolidated net income attributable to shareholders would have increased by six percent. Diluted earnings per share were down 11 percent from $ 0.058 in the first nine months of 2017 to $ 0.052, primarily due to additional distributions to holders of perpetual guaranteed bonds issued in January 2018.
In the quarter ended September 30, 2018, revenues from port operations increased nine percent from US $ 314.6 million to US $ 344.0 million; EBITDA was 12 percent higher, from US $ 145.1 million to US $ 162.6 million; and net income attributable to shareholders increased 22 percent from $ 45.7 million to $ 55.6 million. Diluted earnings per share for the quarter increased 11% to $ 0.019, compared to $ 0.017 in 2017, due to strong operating results, despite additional distributions to holders of perpetual senior equity securities issued in January 2018.
ICTSI handled a consolidated volume of 7,152,392 TEUs in the first nine months of 2018, five percent more than the 6,836,611 TEUs handled in the same period of 2017. The increase in volume mainly to the improvement of commercial activities. the majority of the Company's terminals and the contribution of the new terminals in Lae and Motukea in Papua New Guinea and in Melbourne in Australia. Excluding the new terminals, the consolidated volume would have increased by two percent.
In the quarter ended September 30, 2018, the total consolidated volume was 6% higher than 2,438,136 TEUs compared to 2,291,207 TEUs in 2017. Excluding the new terminals, the consolidated volume would have increased by 4% in the third quarter of 2018.
Gross revenues from port operations in the first nine months of 2018 increased 10% to US $ 1.0 billion, compared to US $ 918.3 million in the same period in 2017. The increase in revenues was mainly due to growth of the volume; new contracts with shipping lines and services; increased revenue from non-containerized cargo, storage and ancillary services; and the contribution of the company's new terminals in Lae and Motukea, Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated gross revenue would have increased by five percent.
In the third quarter of 2018, gross revenue increased nine percent from $ 314.6 million to $ 344.0 million. Excluding the new terminals, consolidated third quarter gross revenue would have increased by five percent.
Consolidated cash operating expenses for the first three quarters of 2018 were 16% higher at $ 398.0 million compared to $ 343.4 million for the same period in 2017. The increase in cash operating expenses was mainly due to cost contribution of the new terminals in Lae. and Motukea in Papua New Guinea and Melbourne, Australia; higher fuel consumption and rental of external patios as a result of the increase in volume; and increased fuel prices and increased repairs and maintenance at certain terminals. The increase was mitigated by the favorable impact of the translation of Philippine Peso and BRL expenses at the various terminals in the Philippines and Suape, Brazil, respectively. Excluding new terminals, consolidated cash operating expenses would have increased only 4% in the first nine months of 2018. For the quarter ended September 30, 2018, the Group's total cash operating expenses increased 9% to $ 132 , 1 million in 2018. of US $ 121.7 million in 2017.
Consolidated EBITDA in the first nine months of 2018 increased six percent to $ 462.1 million from $ 434.9 million in 2017 primarily due to strong revenue growth and the positive contribution of the new terminals at Lae and Motukea in Papua New Guinea, lowering leasing expenses in Melbourne, Australia. As a result, EBITDA margin fell from 47% in the first nine months of 2017 to 46% in the same period of 2018.
Consolidated EBITDA for the third quarter of 2018 increased 12% to US $ 162.6 million from US $ 145.1 million for the same period in 2017. EBITDA margin for the quarter increased from 46% in 2017 to 47% in 2018.
Consolidated financial charges and other expenses in the first three quarters increased by 3% from US $ 86.9 million in 2017 to US $ 89.2 million in 2018, mainly due to the lower capitalized loan cost on qualifying assets.
Capital expenditures, excluding borrowing costs capitalized in the first nine months of 2018, totaled $ 196.4 million, approximately 52% of the budget of $ 380.0 million for the full year 2018. The established budget is allocated primarily capacity expansion in its terminal operations. in Manila, Mexico and Iraq; continuation of the rehabilitation and development of the Company's container terminal in Honduras; acquisition of additional equipment and small infrastructure works in its newly acquired operations in Papua New Guinea; and the completion of its new barge terminal project in Cavite City, Philippines.
ICTSI is widely recognized as a global leader in the development, management and operation of container terminals in the range of 50,000 to 3 million TEUs / year. ICTSI has a history of experience spanning six continents and continues to seek container terminal opportunities around the world.