International Container Terminal Services Inc. said Tuesday net income grew 28 percent in the first quarter from a year ago, on the back of strong international trade.
The port operator owned by businessman Enrique Razon Jr. said net income hit $57.6 million in January to March, up from $45.1 million in the same period last year.
ICTSI’s revenue from port operations went up 12 percent to $297 million from last year’s $266.5 million.
“The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts with shipping lines and services and the contribution from the company’s new terminal in Matadi, DRC [Democratic Republic of Congo],” ICTSI said.
The port operator handled consolidated volume of 2.27 million twenty-foot equivalent units in the first quarter, up 11 percent from 2.05 million TEUs last year.
“The increase in volume was primarily due to continued improvement in global trade activities particularly in the emerging markets, continuing ramp-up at ICTSI Iraq and the contribution of ICTSI Democratic Republic of Congo, the company’s terminal in Matadi, DRC,” ICTSI said.
Capital expenditure in the first quarter reached $33 million, or about 14 percent of the $240-million capex budget for the full year.
The capex is mainly allocated for the completion of the initial stage development of the company’s greenfield projects in Democratic Republic of Congo and Iraq; the second development of port in Australia, Mexico, Honduras and Manila.
ICTSI also invested $9.1 million in SPIA in Buenaventura, Comlumbia and allocated $25 million for its shares in 2017 to complete the initial phase of its joint venture container terminal project with PSA International.