Corporate News

ICTSI posts profit hike on trade uptick

Posted on November 11, 2011

PORT OPERATOR International Container Terminal Services, Inc. (ICTSI) yesterday posted a 34% hike in third-quarter profits over year-ago levels, citing the continued pickup in trade.

The Razon-led firm with operations stretching to the Americas, Europe and East Asia, reported $40.61 million in net income for July to September versus $30.40 million recorded in the same period last year.

This, as cargo volumes handled during the quarter was said to have increased by 28% to 1.36 million twenty-foot equivalent units (TEUs).

“The increase in volume was mainly due to the continued upturn in international trade, particularly in markets where ICTSI’s ports are located and the consolidation of the company’s new ports in Portland in Oregon, US, and Rijeka in Croatia,” the firm said.

Revenues of the firm climbed by 24% to $185.67 million from year-ago levels with sales from port operations rising by nearly a third to $171.78 million.

Expenses, meanwhile, increased by 27% to $136.36 million during the third quarter.

This brings earnings for January to September up by 41% to $101.63 million versus the same period last year.

The firm handled 3.84 million TEUs in those nine months, a 25% growth from the 3.07 million TEUs it handled in the same period last year.

“The increase in revenues for the first nine months of 2011 was mainly due to the strong growth across all geographic segments of the group, higher storage revenues and ancillary services, favorable volume mix, and the inclusion of the new terminals,” ICTSI said.

ICTSI is involved in 23 terminal operating concessions and port development projects in 17 countries worldwide. Of these projects, six are located in the Philippines.

Revenues were whittled down by a 27% hike in expenses to $384.60 million, which was attributed to higher wages, fuel costs and “start-up and operating expenses of the company’s new ports.”

Capital expenditure for January to September amounted to $130.3 million, ICTSI said.

“Majority was spent for the civil works and major equipment at its existing terminals in Manila, Ecuador and Brazil and port development projects in Argentina and Mexico,” the firm said.

Last month, ICTSI invested $10.7 million in new equipment for the Berth 6 project, an expansion plan for Manila’s International Container Terminal. The funds were used to purchase eight brand-new mobile cranes to increase the capacity at said terminal.

This was after the firm’s failed attempt to acquire Singapore-based Portek Internaional, Ltd.

ICTSI shares closed 0.36% higher at P55.10 apiece yesterday. -- Kathleen A. Martin