MANILA, Philippines - Port management giant International Container Terminal Services, Inc. (ICTSI) posted a net income of $172.4 million in 2013, 20% higher than the previous year.
In a statement, ICTSI attributed the higher profits to "strong revenue growth and margin improvement in certain key terminals and the contribution from the new terminal in Karachi, Pakistan."
ICTSI, owned by tycoon Enrique Razon, said revenues from port operations jumped 17% to $852.4 million in 2013 from $729.3 million reported in 2012, on the back of volume growth, higher storage revenues and ancillary services, tariff rate increases in certain key terminals and contributions of new terminals.
The ports operator also handled 12% more in consolidated consolidated volume to end the year at 6,309,840 twenty-foot equivalent units (TEUs). This was mainly due to continued growth in international and domestic trade in most of its terminals, new shipping lines and routes, full contribution of new terminals in Indonesia and Pakistan, and start of commercial operations of new terminals in Mexico and Honduras.
"Excluding the volume contribution from the four new terminals and the effect of the cessation of the operations in Syria effective January 2013, organic volume growth increased by two percent. The company’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan accounted for 78 percent of the group’s consolidated volume in the 2013," it said.
ICTSI said consolidated cash operating expenses in 2013 rose 13% to $359.5 million, driven by higher volume-related expenses, government-mandated and contracted salary rate increases in certain terminals, and higher business development expenses
For 2014, ICTSI said the group’s capital expenditure budget is approximately $310 million. Most of the funds will be allotted for the completion of phase one development in the Company’s new container terminals in Mexico and Argentina, and to start the development of the terminals in Honduras and Democratic Republic of Congo.