MANILA, Philippines - Listed port operator International Container Terminal Services Inc. (ICTSI) is using a portion of its unappropriated retained earnings amounting to $40 million to fund foreign projects next year.
In a disclosure to the Philippine Stock Exchange, ICTSI said its board of directors approved the appropriation of a portion of its unappropriated retained earnings for additional working capital requirements.
The funds will be used for continuing foreign expansion projects next year.
The company recently reduced its capital expenditure budget for the year to $350 million given its underspending trend in the first three quarters.
As of the end of September this year, the firm had already spent $254.6 million or approximately 48 percent of the $530 million capex budget for the year.
The budget is mainly allocated for the completion of ICTSI’s new container terminals in Mexico, Honduras and Iraq, capacity expansion in its terminal operation in Manila, and the start of development of the new terminals in Democratic Republic of Congo and Australia.
The firm also invested $79.1 million in the development of Sociedad Puerto Industrial Aguadulce S.A., its joint venture container terminal development project with PSA International Pte Ltd. in Buenaventura, Colombia.
“The underspending on capital expenditures was mainly from longer payment schedules on civil works and equipment contracts in most of the company’s greenfield projects, foreign exchange related savings brought about by the stronger US dollar, and a number of postponed capital expenditures on volume-related expansions given the weak global trade outlook,” ICTSI said earlier.
For the first nine months, ICTSI’s net income slightly went up to $143.7 million from $142.3 million in the same period last year.
The higher profit was due to an increase in revenues as well as growth in the volume handled at most of the company’s terminals.
ICTSI is currently involved in 29 container terminal operations in 21 countries across six continents.