Port operator International Container Terminal Services Inc. said Tuesday it posted a 19-percent increase in net income in the first half, boosted by robust global trade and new container terminals abroad.
ICTSI, which is led by businessman Enrique Razon, reported a net profit of $103.6 million in January to June, up from $87.3 million in the same period last year.
The company attributed the increase in net income to the continuing ramp-up at the new terminal in Matadi, Democratic Republic of Congo, strong operating income contribution from the terminals in Iraq, Mexico and Brazil, and the one-time gain on the termination of the sub-concession agreement in Nigeria.
Gross revenues from port operations in the first half increased 10 percent to $603.7 million from $550.8 million reported in the same period in 2016.
“The increase in revenues was mainly due to volume growth, tariff rate adjustments at certain terminals, new contracts and services with shipping lines and the contribution from the company’s new terminals in Matadi, DRC and Melbourne, Australia,” ICTSI said.
Excluding the new terminal in DRC and Australia, consolidated gross revenues increased 5 percent.
Gross revenues increased 8 percent in the second quarter to $306.5 million from $284.3 million a year earlier.
ICTSI handled consolidated volume of 4,545,405 twenty-foot equivalent units in the first six months, a 7-percent increase from 4,264,633 TEUs it handled in the same period in 2016.
The increase in volume was primarily due to continuing improvement in global trade activities particularly in emerging markets, continuing ramp-up at ICTSI’s operations in Basra, Iraq, new services at Manzanillo, Mexico and the new terminals in Matadi, DRC and Melbourne, Australia. Excluding the new terminals, consolidated volume increased five percent.
The company budgeted $71 million in capital expenditures in the first half, representing about 30 percent of the $240-million full-year budget.
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 stage development of the Company’s project in Australia; continuing development of the Company’s container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.
ICTSI invested $19.7 million in SPIA in Buenaventura, Colombia.
ICTSI also allocated about $25 million for its share in 2017 to complete the initial phase and to finance the start-up operations of its joint venture container terminal project with PSA International.