ICTSI sees better performance this year

MANILA, Philippines - Port operator International Container Terminal Services Inc. (ICTSI) said it expects to perform better this year as the global economy starts to recover from a financial crisis.

Last year, ICTSI reported a net income of $54.9 million, down 15 percent from the $64.2 million recorded in 2008 largely due to lower volume brought about by the decline in global trade, higher interest expense owing to higher debt level and higher depreciation expense.

“If our performance in the last quarter of 2009 was any indication, we expect brighter prospects for 2010. Profit should rise because of a better business environment,” said Enrique K. Razon, chairman and president of ICTSI.

He said the company remains on the lookout for possible acquisitions to further build up its business.

 “The global downturn has shut the doors of many businesses, but it has also opened a lot of unprecendented opportunities. We shall be on the lookout for these prospects, and make decisions - but as always, we will be prudent,” Razon said.

He said the company is looking to expand its reach in Africa and the Middle East. ICTSI is keen on acquiring ports with an annual capacity of less than 500,000 twenty-foot equivalent units (TEUs).

For this year, ICTSI has allotted $123 million for capital expenditures, slightly higher than the $119 million spent in 2009. The capital budget will be used mainly for its operations in Manila, Brazil, Ecuador and Madagascar.

ICTSI recently raised $250 million from the sale of 10-year bonds, proceeds of which would be used to fund investments in existing and new terminal construction activities, refinance some existing debts and for other general corporate purposes.

In December last year, ICTSI obtained a $100-million five-year term loan with Banco De Oro, of which only $25 million was drawn for general corporate purposes.

ICTSI is engaged in the management, operation and development of container terminals. The company and its subsidiaries provide cargo handling and related services to container, storage facilities and services, and roll-on roll-off (Ro-Ro) and anchorage services to non-containerized cargo or general cargo.

Locally, ICSTI operates the Manila International Container Terminal Inc., Mindanao Container Terminal in Misamis Oriental, the Makar Wharf in General Santos, the Cubi Point at the Subic Bay Freeport Zone in Zambales and Sasa International Port in Davao City.

Apart from the Philippines, Brazil, Ecuador, and Madagascar, ICTSI operates in Poland, Japan, Indonesia, Syria, China, Colombia, Georgia, Brunei and Argentina.

The company manages the Pulau Muara Container Terminal in Brunei, Port of La Plata in Argentina, Port of Batumi in Georgia, Port of Buenaventura in Colombia, Port of Guayaquil in Ecuador, Yantai Port in Shandong Province, China, Tartous Container Terminal in Syria and the Makassar Port Container Terminal in Indonesia.