Philippines foreign operations carry ICTSI back to growth mode

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International Container Terminal Services Inc. (ICTSI) of tycoon Enrique Razon Jr. shipped itself back to expansion mode, as profit rose by 36 percent in the first quarter of the year.

Based on its financial report, ICTSI posted a net income of $209.88 million from January to March, up more than a third from $154.61 million a year ago.

Revenue increased by 15 percent to $685.19 million brought about by the recovery of the international portfolio, neutralizing the four percent rise in expenses to $402.7 million.

Razon, ICTSI's chairman and president, said the company performed well overseas even though it dealt with economic headwinds. He also assured investors that ICTSI can withstand global risks, thanks to its portfolio of terminals operating in 19 countries.

Apart from this, Razon said the positive cash flow of ICTSI improved by 46 percent. This means that the company can pursue business opportunities here and abroad.

'Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46 percent during the [first] quarter, further reinforcing our ability to invest and capitalize on growth opportunities,' he said,

'We look to the future with confidence, and with a highly disciplined business model we remain strongly positioned to continue to deliver financially and operationally for our stakeholders,' he added.

In the first quarter, ICTSI's container volume went down by less than a percent to 3.09 million twenty-foot equivalent units (TEUs), from 3.01 million TEUs a year ago.

ICTSI blamed this slight drop to the expiration of its concession in Pakistan and the deconsolidation of its operations in Jakarta, Indonesia. Further, the company terminated its cargo handling in PT Makassar Terminal Services in Makassar, Indonesia, another factor to the traffic dip.

However, ICTSI managed to still come out with a revenue growth from changes in the container mix, improvement in ancillary services, increases in port tariffs and volume growth in Mexico. It also gained from the recent appreciation of the Mexican peso.

So far, ICTSI has spent $67.94 million of the $450 million it set aside for capital expenditures in 2024 to fund the delivery of new terminals and support the enhancement of existing facilities.

ICTSI is one of the largest port operators in the world in the 50,000 to 3.5 million TEU a year range, managing terminals in six continents with plans to further expand.