MANILA – Port operator International Container Terminal Services, Inc. (ICTSI) has earmarked a capital spending of USD380 million this year after ending 2017 with a seven-percent increase in profit.
In a disclosure to the Philippine Stock Exchange, ICTSI said this year’s capital expenditure budget would be mainly allocated for the capacity expansion in its terminal operations in Manila, Mexico and Iraq.
The company said it would also finance the completion of its new barge terminal project in Cavite City, Philippines, the continuing rehabilitation and development of its container terminal in Honduras, and procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea.
This year’s capital spending budget is 58.3 percent higher compared to USD240 million in 2017.
ICTSI booked a net income of USD207.7 million last year from USD 193 million the previous year.
It attributed the increase in net income mainly to the continuing ramp-up at its new terminal in Matadi in Democratic Republic of Congo, strong operating results from the terminals in Iraq, Mexico, Honduras, Madagascar, China, Poland and Brazil; and the gain related to the termination of the sub-concession agreement in Lagos, Nigeria.
Higher earnings, however, was tapered by higher interest and financing charges, higher depreciation and amortization expenses, start-up costs at the company’s terminal in Melbourne Australia, and increase in share in the net loss at its joint venture container terminal project with PSA International Pte Ltd. in Colombia.
Its revenue from port operations reached USD1.24 billion last year, 10 percent higher compared to USD1.13 billion in 2016.
ICTSI handled consolidated volume of 9,153,458 twenty-foot equivalent units (TEUs) in 2017, five percent more than the 8,689,363 TEUs handled in 2016.
It said volume increased due mainly to continuing improvement in global trade activities, particularly in the emerging markets.