International Container Terminal Services Inc. said net income rose 3 percent in the first nine months from a year ago, on strong operating income from organic terminals as gross revenues reached $1 billion.
The port operator led by businessman Enrique Razon booked a net income of $153.3 million in January to September, up from $149.3 million in the same period last year.
ICTSI said profit in the third quarter climbed 22 percent to $55.6 million from $45.7 million a year earlier.
Gross revenues rose 10 percent to $1.005 billion in the nine-month period from $918.3 million in the same period last year. Third-quarter revenues reached $344 million, up 9 percent from $314.6 million last year.
“The increase in revenues was mainly due to volume growth; new contracts with shipping lines and services; increase in revenues from non-containerized cargoes, storage, and ancillary services; and the contribution from the Company’s new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia,” ICTSI said.
ICTSI handled consolidated volume of 7.15 million twenty-foot equivalent units in the first nine months of 2018, or 5 percent more than 6.83 million TEUs it handled in the same period in 2017.
“The increase in volume was primarily due to improvement in trade activities at most of the company’s terminal locations and the contribution of new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia. Excluding the new terminals, consolidated volume would have increased by two percent,” ICTSI said.
It said that in the third quarter, consolidated throughput was 6 percent higher at 2.43 million TEUs, up from 2.29 million TEUs in 2017. Excluding the new terminals, consolidated volume would have increased by four percent in the third quarter of 2018.
ICTSI’s capital expenditures excluding capitalized borrowing costs in the first nine months amounted to $196.4 million, about 52 percent of the $380-million capital expenditures budget for the whole 2018.
“The established budget is mainly allocated for the capacity expansion in its terminal operations in Manila, Mexico, and Iraq; continuing rehabilitation and development of the Company’s container terminal in Honduras; procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea; and the completion of its new barge terminal project in Cavite City, Philippines,” the port operator said.