Manila-based International Container Terminal Services, Inc. (ICTSI) has posted improved results for the first quarter of 2017 compared to the year-ago figures, aided by higher throughput handled during the period.
Net profit for the three months ended 31 March 2017 was recorded at $57.6m, an increase of 28% from the gain of $45.1m in the same period of last year.
Revenue also rose by 12% year-on-year to $297.2m due partly to contributions from higher throughput of 2.27m teu, up 11% year-on-year.
The increase in volume was primarily due to continuous improvement in global trade activities particularly in the emerging markets, continuing ramp up at ICTSI Iraq, and the contribution of ICTSI’s new terminal in Matadi, Congo.
ICTSI added that the improved first quarter results was also due to tariff rate adjustments at certain terminals, new contracts with shipping lines and services, and an ongoing group-wide cost optimisation initiatives.
The global container terminal operator also shared that capital expenditure in the first quarter amounted to $33m, approximately 14% of the $240m capital expenditure budget for the full year 2017.
The established budget has been mainly allocated for the completion of the initial stage development of the company’s greenfield projects in Congo and Iraq; the second stage development of the project in Australia; continuing development of container terminals in Mexico and Honduras; and capacity expansion in its terminal operations in Manila.
In addition, ICTSI has invested $9.1m in SPIA in Buenaventura, Colombia. The company has allocated approximately $25m for its share in 2017 to complete the initial phase of its joint venture container terminal project with PSA International.