ICTSI posts 20 per cent profit rise as revenue and port volumes grow
New terminals in Indonesia and South Africa helped lift traffic, while costs increased 37 per cent to US$801.4 million.
International Container Terminal Services Inc. (ICTSI) reported net income of US$898.89 million for the nine months to September, up 20 per cent from US$751.56 million a year earlier, according to its financial report.
Revenue reached US$2.9 billion, an increase of 24 per cent, supported by higher tariffs and contributions from new projects. The port operator has added terminals in Indonesia and South Africa, which also helped increase cargo traffic.
Consolidated volume rose 13 per cent to 12.11 million TEUs. Alongside traffic from the new terminals, the company recorded greater activity in Asia and the Americas. Revenue also benefited from gains in the Australian dollar, Brazilian real and Mexican peso, as ICTSI earns mainly in foreign currencies.
Enrique Razon Jr. attributed the earnings growth to ICTSI’s mix of domestic and overseas projects. He said the company remained focused on integrating its new terminals and investing in capacity and service improvements, while maintaining discipline in allocating capital.
Costs climbed 37 per cent to US$801.4 million as terminal operating and maintenance expenses increased. Higher fuel prices linked to security tensions in the Middle East added to the burden. As of September, ICTSI had spent US$507.43 million, or 69 per cent, of its US$740 million capital expenditure budget for the year.
