Despite global trade tensions, ICTSI posts 29% profit growth

Tycoon Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) said earnings increased in the first nine months year, with its diverse ports holdings around the world helping shield it from trade tensions between the United States and China.

ICTSI said in a stock exchange filing that net income during the period grew 29 percent to $184.9 million compared to the same period in 2018. Revenues from port operations, alone, rose by 10 percent to $1.1 billion.

ICTSI said earnings received a boost from strong operating income from its terminals in Democratic Republic of Congo, Iraq, Mexico and Manila and Subic in the Philippines.

It also cited new contracts with shipping lines and services at Victoria International Container Terminal (VICT) in Melbourne, Australia, the continuing ramp-up at the new terminals in Papua New Guinea, and a decrease in equity in net loss at Sociedad Puerto Industrial Aguadulce S.A.

“Positive progress has been made across the business which in part has been enabled by the prudent investments we make in our brownfield terminals,” Razon said in a statement.

“While we remain conscious of the current geopolitical trade tensions, we are well positioned to deliver value for all our stakeholders,” he added.

Net income in the third quarter alone hit $56.4 million, up 7 percent. Port revenue also went up 3 percent to $355.6 million.

During the nine-month period, ICTSI handled 759 million twenty foot equivalent units, reflecting a growth of 6 percent.

ICTSI cited new terminals in Lae and Motukea in Papua New Guinea coupled with better trade activities in Subic, Matadi, Democratic Republic of Congo and Basra, Iraq. —MIGUEL R. CAMUS

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