ICTSI allots $530M for capex

MANILA, Philippines - International Container Terminal Services Inc. (ICTSI) has earmarked $530 million for its capital expenditures this year after booking a six percent growth in earnings last year.

In a disclosure to the Philippine Stock Exchange (PSE), ICTSI said in a disclosure to the Philippine Stock Exchange (PSE) the amount would be used for the completion of development at the company’s new container terminals in Mexico and Democratic Republic of Congo, capacity expansion in its terminal operation in Manila, and to start the development of the new terminals in Iraq and Australia. 

ICTSI is investing approximately $140 million to complete the first phase of a joint venture container terminal development project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia where it invested $64.7 million last year.

This year’s budget is 71 percent higher than the $310 million allocation for capital expenditures last year.

Of the entire amount, ICTSI said it was able to disburse only 90 percent amounting to $279 million.

The company used the amount for the development of new container terminals in Mexico and Argentina; capacity expansion in its terminal operation in Croatia; facilities rehabilitation in its newly acquired terminal in Honduras; and to start the development of the terminal in Democratic Republic of Congo.

ICTSI reported that its net income reached $191.5 million last year or $10.8 million higher compared to $180.7 million in 2013.

The company’s port revenue surged 24 percent to $1.06 billion last year from $852.4 million in 2013 mainly due to the revenue contribution from the new terminals in Manzanillo, Mexico, Puerto Cortes, Honduras, and Umm Qasr, Iraq; a strong 45 percent revenue growth from the company’s consolidated terminal operations in Yantai, China; and favorable volume mix.

Excluding the revenues from the new terminals, organic revenue growth was eight percent as all three geographical segments reported double-digit growth led by Americas with followed by Asia and EMEA each posting strong 16 percent increases.

Revenues from ICTSI’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan grew 10 percent and accounted for 74 percent of the consolidated revenues last year.

Consolidated volume handled by the port operator went up 18 percent to 7.44 million twenty-foot equivalent units (TEUs) last year from 6.31 TEUs in 2013 mainly due to the volume generated by Contecon Manzanillo S.A. (CMSA), Operadora Portuaria Centroamericana, S.A. de C.V (OPC), and ICTSI Iraq, the Company’s new container terminals in Manzanillo, Mexico, Puerto Cortes, Honduras, and Umm Qasr, Iraq.