Container port operator International Container Terminal Services Inc. said Tuesday net income jumped 42 percent in the first six months to $128.5 million from $90.2 million in the same period last year.
“ICTSI’s performance in the first half of 2019 has been very positive. The group’s focus on generating high-quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives,” ICTSI chairman and chief executive Enrique Razon Jr. said.
“Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely. ICTSI is a robust business, strongly placed for the second half and the board remains confident of the future,” he said.
Gross revenues from port operations increased 14 percent in the six-month period to $751.8 million from $661.8 million a year earlier.
“The increase in revenues was mainly due to volume growth; tariff adjustments for certain services at multiple terminals; new contracts with shipping lines and services; continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico; and the contribution from the company’s new terminals in Lae and Motukea in Papua New Guinea,” ICTSI said.
ICTSI said consolidated volume reached 5,041,916 twenty-foot equivalent units in the first six months, or 7 percent more than 4,714,255 TEUs it handled in the same period in 2018.
The company attributed the increase in volume to the continuing ramp-up at ICTSI’s operations in Melbourne, Australia and Manzanillo, Mexico; improvement in trade activities in Subic, Philippines Matadi, Democratic Republic of Congo and Rijeka, Croatia; new shipping lines and services in Gdynia, Poland; and the new terminals in Lae and Motukea in Papua New Guinea.
Capital expenditures excluding capitalized borrowing costs hit $120.5 million in the first half, representing about 32 percent of the $380-million capital expenditures it budgeted for the full year.
ICTSI said the estimated capital expenditure budget would be used for the ongoing expansion projects in Manila, Mexico and Iraq; equipment acquisitions and upgrades; and for maintenance requirements.