MANILA, Philippines—Ports and gaming mogul Enrique K. Razon Jr.’s International Container Terminal Services Inc. (ICTSI) saw profits surge in the first quarter of 2021 as global trade continued to recover despite the COVID-19 pandemic.
From January to March, ICTSI recorded a net income of $90.1 million, up 51 percent, while revenues jumped 16 percent to $435.6 million, a stock exchange filing on Thursday (May 6) showed.
“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,” Razon said in a statement.
“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,” he added.
ICTSI said profits came from improved operating earnings and a decline in losses from joint ventures. At the same time, loan interest payments increased apart from higher interest on concession rights payable and lease liability from its new terminals.
It pointed to a $42,000 gain from Manila North Harbour Port Inc. versus a $5.5 million loss during the same period in 2020. This was because of deferred tax liabilities allowed by the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).
It also recorded a lower share in net loss at Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal project with PSA International Pte Ltd. in Buenaventura, Colombia.
Overall, the company recorded earnings before interest, taxes, depreciation, and amortization of $264.8 million, up 25 percent.
Total volume across its ports hit 2.7 million twenty foot equivalent units—a gain of 8 percent.
ICTSI said an “improvement in trade activities as economies recover” drove growth apart from the expansion of shipping lines and services at its overseas operations.
ICTI said total cash operating expenses in the first quarter of 2021 rose 3 percent to $122.4 million.
Meanwhile, capital spending for the quarter hit $36.3 million.
ICTSI said the spending went to the ongoing expansion at Manila International Container Terminal, 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.
It earlier budgeted a full-year capital spending target of $250 million.
Razon’s group is also a key private sector partner backing the order of millions of coronavirus vaccines from American drug firm Moderna.
“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,” Razon said in the statement.
“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 added.