INTERNATIONAL Container Terminal Services Inc. (ICTSI) doubled its capital requirements this year to bankroll the completion of its offshore terminals and for the capacity expansion of its flagship port in Manila.
The port operator, in a statement to the Philippine Stock Exchange, said its $530-million capital expenditures (capex) would be used to finish Ictsi’s construction projects in Mexico and the Democratic Republic of Congo. It will also be used to start the development of new terminals in Iraq and Australia, as well as the expansion of its ports in the Philippines.
The company spent $279 million in 2014, lower than the full-year capital allocation of $310 million. The amount was used mainly to develop new container terminals in Mexico and Argentina, to expand the capacity of its port in Croatia, to rehabilitate its newly acquired Honduras terminal, and to start the development of the sea gateway in the Democratic Republic of Congo.
In 2014 the port business of billionaire Enrique K. Razon booked a 6-percent increase in net income, to $191.51 million from $180.67 million, “driven by increased contributions from newer operations in Manzanillo, Mexico and Puerto Cortes, Honduras; the consolidation of terminal operations in Yantai, China; and improved performance at Subic Bay, Philippines.”
Revenues rose by 29.5 percent, to $1.13 billion from $872.87 million, while expenses rose by a faster 35 percent, to $886.99 million from $657.90 million.
“The increase in gross revenues was mainly due to the revenue contribution from the new terminals in Manzanillo, Mexico, Puerto Cortes, Honduras, and Umm Qasr, Iraq; a strong 45-percent revenue growth from the company’s consolidated terminal operations in Yantai, China; and favorable volume mix,” the disclosure read.
The group’s seven key terminal operations in Manila, Brazil, Poland, Madagascar, China, Ecuador and Pakistan, which grew by 10 percent, accounted for 74 percent of the groups consolidated revenues in 2014.
Share of ICTSI ended Thursday’s trading at P112.50 apiece.