Razon’s ICTSI ekes out Q1 earnings growth despite struggles

MANILA, Philippines — International Container Terminal Services, Inc. saw its bottom-line grow in the first quarter on the back of its port business and ancillary revenues.

In a disclosure sent to the Philippine Stock Exchange on Monday, the Razon-led company reported its net income improved 9% year-on-year to $154.61 million from January to March.

Revenues from port operations inched up 8% to $572.25 million on-year in the first quarter. The company cited a host of factors that contributed to the uptick in its haul, such as tariff adjustments, ancillary services revenues, and lower pandemic-related expenses.

Despite this, ICTSI’s financials were tempered by struggles across different port operations around the world. This was the case in its operations in Pakistan and Australia, as trade activities weakened in the first quarter.

Figures broken down showed ICTSI managed a consolidated volume of 3.1 million twenty-foot equivalent units, which grew 9% on-year in the first quarter. Its Manila North Harbour Port Inc. contributed to the uptrend, since the company consolidated operations last September 2022. 

Consolidated earnings before interest, taxes, depreciation and amortization advanced 5% on-year to $354.2 million in the first quarter. 

Capital expenditures, which excluded borrowing costs, hit $87.69 million in the first quarter. 

“These results have been driven by our diversified portfolio and continued focus on margins, and they have been achieved against a challenging macroeconomic and geopolitical backdrop,” said Enrique Razon Jr., company chairman and president.