International Container Terminal Services Inc. said Thursday net income rose 22 percent to $221.5 million in 2018 from $182.2 million in 2017.
“I am pleased to report strong full year operating results for 2018. Our drive in maintaining positive volume growth organically and through M&A, our focus on cost and operating efficiency, and the constructive global trade dynamics outside of the US-China ‘trade war’ combine to provide a case for cautious optimism in 2019,” said ICTSI chairman Enrique Razon Jr.
Gross revenues from port operations in 2018 increased 11 percent to $1.4 billion from $1.2 billion reported in 2017.
ICTSI said 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; tariff adjustments; and the contribution of the company’s new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia.
Excluding the new terminals, consolidated gross revenues would have increased by seven percent.
ICTSI handled consolidated volume of 9,736,621 TEUs in 2018, six percent more than the 9,153,458 TEUs handled in 2017.
ICTSI’s capital expenditure for 2019 is expected to be about $380 million.
The estimated capital expenditure budget will be utilized mainly for the ongoing expansion projects in Manila, Mexico and Iraq; equipment acquisitions and upgrades; and for maintenance requirements.
ICTSI in 2018 allocated a capex of $261.3 million mainly for the capacity expansion in its terminal operations in Manila, Mexico and Iraq and continuing rehabilitation and development of the company’s container terminal in Honduras.
Last year’s capex was also used for the 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.