ICTSI continues profit streak in third quarter

MANILA, Philippines — Port operator International Container Terminal Services Inc. (ICTSI) is poised to end the year in the green after booking $485 million in profit between January and September.

In a disclosure to the Philippine Stock Exchange, ICTSI said the company’s net income rose by four percent to $484.54 million in the nine months to September from $465.13 million a year ago.

All in all, ICTSI recorded an eight percent increase in revenue to $1.83 billion, although this was mitigated by the nine percent surge in expenses to $1.17 billion.

ICTSI attributed its sustained growth to the rising volume of shipments that it handles. Between January and September, the company elevated its cargo volume by seven percent to 9.45 million TEUs with shipping activities normalizing from the pandemic slowdown.

ICTSI said earnings benefitted mainly from the introduction of new services in certain terminals. However, this was offset by multiple developments like the expiry of its concession in a Pakistan port and the stoppage of cargo handling operations in Davao and Indonesia.

As of September, the port operator owned by billionaire Enrique Razon Jr. used up $233.58 million of the $400 million budget for capital expenditures this year.

ICTSI spent the bulk of its capex to increase the capacity of its facilities in Manila, Australia, the Democractic Republic of Congo and Mexico.

As it treads well within its capex guidance, ICTSI believes it will close the year with its balance sheet in the pink of health.

“Looking ahead, while ICTSI continues to expect a challenging macroeconomic and geopolitical environment, we remain confident in the resilience of our diverse portfolio. Our strategy as an independent port operator – supported by our cost and operational discipline – means that we are well-positioned for the rest of the year, as well as over the long term,” Razon said.

In April, Razon informed ICTSI shareholders the company would return to expansion mode this year and beyond. He admitted that ICTSI held on to its capital in 2022 on the uncertainties as to whether the pandemic lockdowns are really ending.

True enough in July, ICTSI announced that it won the contract to develop and operate the second pier in the Port of Durban, the largest of its kind in Africa.

ICTSI serves as one of the largest port operators in the world in the 50,000 to 3.5 million TEU a year range, managing terminals in six continents with intent to add more down the line.