ICTSI earnings jump 14% during second quarter

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ADRIATIC Gate Container Terminal, the Croatian subsidiary of International Container Terminal Services, Inc. at the Port of Rijeka, is expanding its capacity through mid-2020. — COMPANY HANDOUT

INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 14% rise in earnings during the second quarter as it recorded a higher throughput across its ports.

The Razon-led port operator saw its attributable net income jump 14% to $56.07 million in the April to June period, supported by the 9% increase in its gross revenues from port operations to $368 million.

The 7% growth in its consolidated throughput to 2.56 million twenty-foot equivalent units (TEUs) during the three-month period propelled its earnings to outpace the 4.2% increase in expenses at $297.9 million.

In the six months ending June, ICTSI’s attributable net income stood at $128.5 million, 42% higher than the $90.2 million recorded a year ago.

Gross revenues rose 14% to $751.8 million, backed by the 7% increase in throughput during the semester to 5 million TEUs.

ICTSI traced the higher earnings to tariff adjustments for certain services in several terminals, new contracts with shipping lines and services, the ramping up of its operations in Australia and Mexico, and added revenues from its two new terminals in Papua New Guinea.

Total expenses went up 4% to $588.49 million during the six-month period. Consolidated cash operating expenses also grew 5% to $232.0 million.

ICTSI said the higher cash operating expense is a reflection of the bigger volume it handled, salary adjustments in some terminals, increased information technology-related and business development expenses and cost contribution of its new terminals.

“The group’s focus on generating high quality earnings from our ports, ramping up activities at our newer terminals and strong cost control has enabled us to continue to deliver on our strategic objectives,” ICTSI President and Chairman Enrique K. Razon, Jr. was quoted in a statement as saying.

“Our business remains relatively unscathed by current geopolitical headwinds, but we remain vigilant and continue to monitor the situation closely. ICTSI is a robust business, strongly placed for the second half and the Board remains confident of the future,” Mr. Razon added. — Denise A. Valdez