Termination of Nigeria contract pulls ICTSI's income to over $100M

MANILA, Philippines – International Container Terminal Services Incorporated (ICTSI), the port operator of tycoon Enrique Razon Jr, recorded a 24% surge in net income to $115.1 million in the 1st half of 2017, fueled by strong performance from overseas terminals and a one-time gain on the termination of its sub-concession agreement in Nigeria.

ICTSI told the Philippine Stock Exchange (PSE) it experienced continuing ramp-up at the new terminal in Matadi, Democratic Republic of Congo (DRC), as well as strong operating income contribution from terminals in Iraq, Mexico, and Brazil.

The 24% surge in net income comes amid higher interest and financing charges as well as higher depreciation and amortization expenses. (READ: Razon-led ICTSI ends contract with Port of Portland)

ICTSI also disclosed it incurred start-up costs at its terminal in Melbourne, Australia, and a net loss at Sociedad Puerto Industrial Aguadulce SA, its joint venture container terminal project with PSA International Pte Ltd in Buenaventura, Colombia.

2017 capital spending budget

The port operator spent around $71 million in the 1st half of 2017. This is about 30% of the $240-million capital spending budget it earmarked for the entire year.

The budget is mainly allocated for the completion of the initial stage development of ICTSI's greenfield projects in DRC and Iraq; the 2nd stage development of its project in Australia; continuing development of container terminals in Mexico and Honduras; as well as capacity expansion in its terminal operations in Manila.  

In addition, ICTSI invested $19.7 million into Sociedad Puerto in Buenaventura, Colombia. – Rappler.com