International Container Terminal Services Inc. (ICTSI) sustained its growth momentum in the second quarter as newly acquired terminals and resilient cargo demand helped cushion the impact of a more challenging global operating environment, highlighting how geographic diversification continues to underpin the ports operator’s earnings.
ICTSI, the global port operator owned by Filipino billionaire Enriquez Razon Jr., said net income attributable to equity holders rose 21 percent to USD296.41 million in the three months ended June, while revenue from port operations increased 25 percent to USD958.73 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 23 percent to USD613.70 million, reflecting higher operating income despite higher costs.
Razon, who is chairman and president of ICTSI, said the quarter benefited from double-digit growth in volumes, revenues and earnings, supported by recently added terminals and stable performance across ICTSI’s existing portfolio.
“We remain focused on executing our expansion programme, integrating new operations, and maintaining financial discipline across the business,” Razon said, adding that the company continues to invest in capacity and service improvements to support long-term growth.
Cargo throughput expanded 15 percent to 4.03 million twenty-foot equivalent units (TEUs), driven largely by the contributions of Durban Gateway Terminal in South Africa and Batu Ampar Container Terminal in Indonesia, as well as improving trade activity across Asia and the Americas. Excluding newly acquired and discontinued operations, however, volume growth would have been only 1.0 percent, suggesting acquisitions accounted for much of the quarter’s acceleration.
Revenue also benefited from a more favorable container mix, tariff adjustments and higher ancillary service income, while stronger foreign currencies in key markets boosted reported results.
Operating expenses increased as ICTSI absorbed costs from newly acquired terminals, higher fuel prices linked to Middle East tensions, wage adjustments and foreign exchange movements. Even so, margins remained strong, underscoring the resilience of the company’s operating model.
For the first half, recurring net income rose 25 percent to USD604.69 million, while revenue increased 27 percent to USD1.92 billion and EBITDA grew 24 percent to USD1.23 billion, reinforcing ICTSI’s ability to convert expansion into sustained earnings growth.
