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Global port operations boost ICTSI income in January-March

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International Container Terminal Services Inc. (ICTSI) saw its profits rising by 51 percent in the first quarter, as it continued to grow its global port operations.

In absolute terms, ICTSI booked a net income of $90.1 million, or 51 percent higher than the $59.6 million it registered the year prior, “due to higher operating income and significant reduction in equity in net loss of joint ventures.”

The company’s gross revenues reached $435.6 million in the January-to-March period, a 16-percent rise from $375.8 million last year, thanks to favorable volume growth, tariff adjustments, the signing of new contracts with shipping lines and services, and the increased demand for storage and ancillary services.

The group handled a consolidated volume of 2.71 million twenty foot equivalent units (TEUs) in the first three months of the year. This translates to an 8-percent increase from the 2.51 million TEUs handled the year prior.

Its cash operating expenses for the said period reached $122.4 million or about 3 percent higher than the $119.0 million last year, while its consolidated financing charges was also three percent more to $34.0 million from $33.2 million.

“ICTSI has delivered strong operating performance in the first quarter of 2021, with volume, revenue and earnings rising across our three regions: Asia, the Americas, and Europe, Middle East, and Africa. We have seen improvements in most of our terminals as economies continue to recover from the pandemic as well as significant contributions from new shipping lines and services,” Enrique K. Razon Jr., ICTSI chairman and president, said.

The company has programmed $250 million in capital expenditures this year to complete the expansion and development projects in Manila, Australia, and the Democratic Republic of Congo, and for the acquisition of new equipment, as well as various maintenance requirements.

ICTSI reported in March that its profits grew by a percentage point to $101.8 million in 2020 from $100.4 million the year prior thanks to the 2-percent increase in its gross revenues to $1.51 billion from $1.48 million the previous year, and the lower cash operating expenses resulting from the continuous group-wide cost reduction and optimization measures.

The port operator’s volumes were flattish in 2020 at 10.19 million TEUs due to the pandemic’s effect on global trade and lowdown restrictions.

Read full article on BusinessMirror

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