International Container Terminal Services Inc. said Thursday net income rose 51 percent in the first quarter to $90.1 million from $59.6 million a year ago on higher revenue from port operations amid the global pandemic.
“ICTSI has delivered strong operating performance in the first quarter of 2021, with volume, revenue and earnings rising across our three regions: Asia; the Americas; and Europe, Middle East and Africa. We have seen improvements in most of our terminals as economies continue to recover from the pandemic as well as significant contributions from new shipping lines and services,” ICTSI chairman and president Enrique Razon Jr. said in a statement.
“The pandemic remains extremely challenging for so many people around the globe. At ICTSI, we are proud of our role in working with the government and the private sector in driving the vaccination procurement program in the Philippines. Not only will this combined effort save lives, it will also contribute to the full opening of the Philippine economy and support significant recovery across all business sectors,” he said.
Gross revenues from port operations increased 16 percent in the first quarter to $435.6 million from $375.8 million in the same period in 2020.
ICTSI attributed the higher gross revenues “to volume growth, favorable container mix; tariff adjustments at certain terminals, new contracts with shipping lines and services and increased storage and ancillary services particularly in the Americas segment; partially tapered by decline in trade activities at certain terminals primarily due to the impact of COVID-19 pandemic.”
Capital expenditures, excluding capitalized borrowing costs, amounted to $36.3 million in the first quarter. These were mainly for the expansion at Manila International Container Terminal in Manila and ICTSI DR Congo in Matadi, Democratic Republic of Congo and acquisition of port facilities and equipment at ICTSNL in Port of Onne, Rivers State, Nigeria.
The group’s capital expenditure budget for 2021 is about $250 million which will be utilized for the completion of the expansion project at MICT in Manila; the yard expansion at IDRC in Matadi; the new expansion project at VICT in Melbourne, Australia; equipment acquisitions and upgrades; and for various maintenance requirements.