ICTSI profit up 4% as global cargo business recovers

MANILA  -Port operator International Container Terminal Services Inc. (ICTSI) continues to see growth in cargo volume across its global operations, allowing it to post healthy gains during the first three quarters.

In a statement on Wednesday, the Razon-led listed company reported that its net income attributable to equity holders rose 4 percent to $484.54 million for the period, lifted by revenues that grew by 7 percent to $1.64 billion.

Earnings before interest, taxes, depreciation and amortization also jumped by 7 percent to $1.11 billion.

It handled consolidated volume of 9.45 million twenty-foot equivalent units (TEUs) in January to September, up 7 percent from 8.86 TEUs a year ago.

Apart from volume growth, revenues were also driven by ancillary services and general cargo business operations at certain terminals.

“Looking ahead, while we continue to expect a challenging macroeconomic and geopolitical environment, we remain confident in the resilience of ICTSI’s diverse portfolio,” ICTSI chair and president Enrique Razon said.

Capital expenditure for the period amounted to $233.58 million for the expansion and acquisition of equipment in its operations in Manila, Mexico, Australia and Congo. For the entire year, ICTSI earmarked $400 million for capital outlay.

In August, ICTSI secured a $750-million loan facility from Metropolitan Bank & Trust Co.—which is the port operator’s biggest borrowing yet—as it seeks to refinance short-term obligations and fund global expansion.

READ:  Expanding ICTSI borrows $750M from Metrobank

It is currently constructing a multipurpose terminal in Indonesia, designed to service Lamongan, Tuban and central Java hinterlands. The project includes a 300-meter quay line, breakwater and super- heavy lift breakbulk deck.

READ: ICTSI building new terminal in Indonesia

ICTSI also won earlier this year a 25-year contract to operate and develop a Durban Container Terminal Pier 2 at the Port of Durban in South Africa.