Increased container volume and port revenues lifted the net income of International Container Terminal Services Inc. in January to September by 47 percent to $465.1 million from a year ago.
In a disclosure, the Razon-led port operator reported that gross revenues from port operations had risen by 20 percent to $1.64 billion as of end-September as the market recovered from the impact of the pandemic.
Consolidated volume for the period increased by 7 percent to 8.86 million twenty-foot equivalents (TEUs) from 8.27 million TEUs in the same period a year ago. The volume growth was attributed to improving trade activities as economies around the world continued to resume more business operations.
“We have delivered seven consecutive quarters of double-digit consolidated revenue growth which has helped offset inflationary pressure with our excellent performance being driven by volume growth, cost control and operating discipline,” ICTSI chair and president Enrique Razon said.
Total financing charges and other expenses climbed by 24 percent to $130.8 million in January to September because of higher interest on borrowings.
Capital expenditures amounted to $281.3 million as of end-September. These were allocated for expansion projects in several ports, including the Manila International Container Terminal, ICTSI DR Congo S.A. and Contecon Manzanillo S.A. de C.V.
In September, ICTSI unit Abbotsford Holdings Inc. announced its plan to dispose of all of its stake in Hijo International Port Services Inc. (HIPSI), a private commercial port in Davao. It sold its 65-percent ownership to Hijo Resources Corp. (HRC) for P325 million.
Abbotsford and HRC had invested in HIPSI in 2012 for the construction, development and operation of the port. HRC is a diversified group with interests in leisure and tourism, agribusiness, property development and port operations.
The Hijo port, which handles break-bulk cargo, has two berths at 120 meters and 150 meters long.
“We remain mindful of the macroeconomic environment and the potential impact this may have on our business but remain confident that we are well-positioned to navigate these headwinds through our agility, diversified portfolio and strong balance sheet,” Razon said.
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