Philippines-based port management company International Container Terminal Services (ICTSI) has increased its 2018 profit on the back of a six percent increase in TEU volume and inclusion of new terminals.
Consolidated volume for 2018 rose to 9,736,621 TEUs, compared to 9,153,458 TEUs in 2017, the company said in its 2018 earnings report.
In addition to volume growth, revenue from port operations increased 11 percent to USD 1.4 billion, as opposed to USD 1.2 billion in 2017.
ICTSI’s net income rose to USD 249.8 million, up 20 percent from USD 207.7 in 2017.
“I am pleased to report strong full year operating results for 2018,” Enrique Razon, Chairman of ICTSI, said.
“Our drive in maintaining positive volume growth organically and through M&A, our focus on cost and operating efficiency, and the constructive global trade dynamics outside of the U.S.-China “trade war” combine to provide a case for cautious optimism in 2019.”
The company said the increase in volume was mainly due to new contracts with shipping lines and services, and the contribution of new terminals in Lae and Motukea in Papua New Guinea, and Melbourne, Australia.
Excluding new terminals, consolidated volume would have increased by three percent in 2018, ICTSI noted.
The increase in net income was mainly due to strong operating income from organic terminals in addition to a decrease in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce, its joint venture container terminal project with PSA International in Buenaventura, Colombia. The joint venture project decreased from USD 36.8 million in the year of 2017 to USD 23.4 million for the same period in 2018 as the company continued to ramp-up container volume.
The group’s capital expenditure for 2019 is expected to be approximately USD 380 million. The estimated capital expenditure budget will be utilized mainly for the ongoing expansion projects in Manila, Mexico and Iraq, equipment acquisitions and upgrades, and for maintenance requirements.