ICTSI income surges 66% to P275M in Q1

Port operator International Container Terminal Services Inc. (ICTSI) posted a net profit of P275 million in the first quarter this year, up 66 percent from the previous level’s P166 million, mainly due to the strong performance of its foreign units.

In a financial report filed with the Securities and Exchange Commission, ICTSI said the significant growth in earnings largely came from increases in volumes handled by Tecon Suape S.A. (TSSA), which operates the Suape Container Terminal in Brazil, and the company’s flagship Manila International Container Terminal (MICT).

Consolidated gross revenues from port operations rose 19 percent to P2.37 billion, from P1.99 billion a year ago. Net revenues, or revenues from port operations after deducting port authorities share, amounted to P1.7 billion, an increase of 22 percent over the same period last year.

Commenting on the company’s performance, Enrique K. Razon Jr., ICTSI chairman and chief executive officer, said: "The first quarter is traditionally our weakest; these strong results show that we are off to a great start in 2005, and continue to deliver the kind of positive trajectory in profit growth we established last year."

ICTSI handled consolidated volume of 443,373 twenty-foot equivalent units (TEUs) during the first quarter, 12 percent higher than the 397,190 TEUs handled in the same period last year.

TSSA continued to deliver significant increases in volumes for the quarter in review, registering a 35 percent volume growth over the previous year.

The MICT accounted for the bulk of consolidated volume, with first quarter volume growing by 14 percent over the 2004 first quarter volume.

On the other hand, ICTSI’s Baltic Container Terminal (BCT) in Poland posted a four percent growth in volume.

Meanwhile, total consolidated operating expenses went up 15 percent, largely due to higher expenses of BCT, higher electricity and fuel costs recorded at the MICT; and increased accruals for project-related costs incurred by subsidiary ICTSI Ltd. in connection with the growth in the company’s international portfolio.

In the first quarter, ICTSI invested P315 million to continue to expand the handling capacity and improve operating efficiency of its three main facilities: MICT, BCT and SCT.

The company expects to make further investments in these facilities throughout the remainder of the year, and to continue to pursue the acquisition of additional terminals to expand its international portfolio.