Economic reopening boosted ICTSI’s H1 profit by 7%

MANILA  -International Container Terminal Services Inc. (ICTSI) grew its earnings in the first half after handling more cargos as trading activities maintained momentum with the further reopening of the economy.

In its disclosure on Monday, the Razon-led port operator reported that its net income had climbed by 7 percent to $313.8 million in January to June, boosted by revenues increasing by 10 percent to $1.16 billion from the past year.

Earnings before interest, tax, depreciation and amortization, meanwhile, improved by 8 percent to $728.88 million.

Cargo volume for the period rose by 9 percent to 6.28 million twenty-foot equivalent units (TEUs).

ICTSI said that most of the movement was recorded at the Manila North Harbor Container Port Inc., which is among the country’s busiest ports. It is set to implement a 10-percent increase in cranage rates this week.

Apart from better throughput, the listed company said that tariff adjustments and higher revenues from ancillary services had also lifted its bottom line in the first half.

“The macroeconomic and geopolitical climate continues to be uncertain but these results give us continued confidence in our financial and operational resilience,” ICTSI chair and president Enrique Razon Jr. said.

It spent $152.23 million in capital expenditures during the first half for expansion plans and equipment purchase in ports in Mexico, Australia, Congo and Manila.

ICTSI has earmarked $400 million this year for port expansion, equipment upgrade and maintenance requirements.

“The opportunities for future growth are considerable and we will work closely with our stakeholders to achieve positive change for the communities in which we operate and deliver long-term sustainable growth,” Razon said.

Last month, ICTSI was chosen as the preferred bidder by Transnet SOC Ltd., a South African government state-owned company, to operate and develop Durban Container Terminal Pier 2 at the Port of Durban under a 25-year contract. INQ