ICTSI unshaken by global risks, earnings rise 20%

MANILA, Philippines — Tycoon Enrique Razon Jr. is reaping dividends from his bets to add more international ports, as his flagship firm International Container Terminal Services Inc. (ICTSI) is showing no signs of any impact from global risks.

Based on its financial report, ICTSI’s net income rose by 20 percent to $898.89 million in the nine months to September, from $751.56 million a year ago.

Razon attributed this to the diversity of ICTSI’s portfolio, made up of local and foreign projects, most of which cater to high-traffic districts.

ICTSI grew its revenue by 24 percent to $2.9 billion due to higher tariffs and new projects to source income from. Recently, the company expanded its portfolio by adding new terminals in Indonesia and South Africa.

ICTSI is shielded from the peso’s depreciation. The company earns largely in foreign currencies, so the appreciation of Australian dollar, Brazilian real and Mexican peso improved revenues.

Further, ICTSI’s consolidated volume went up by 13 percent to 12.11 million TEUs, picking up fresh traffic from Indonesia and South Africa and more activities from Asia and the Americas.

Given this, Razon is optimistic that ICTSI would overcome trade uncertainties, slower Philippine economic growth and hot inflation, as its portfolio is well spread out to be beaten by risks.

“We remain focused on integrating our new terminals and investing to strengthen capacity and service levels across our network, confident in the long-term contribution these operations would make,” Razon said.

Still, ICTSI is watching its spending closely, as costs ballooned by 37 percent to $801.4 million. The company spent more for the operations and maintenance of its terminals, burdened by higher fuel prices triggered by security tensions in oil producer Middle East.

Razon committed disciplined allocation in its capital rollout. He told investors that the company is undertaking capacity upgrades and expansion projects that deliver long-term value.

As of September, ICTSI has used up 69 percent, or $507.43 million, of the $740 million it has set for capital expenditures this year.

ICTSI is one of the world’s largest port operators, with projects across six continents and intends to add more.