Port operator International Container Terminal Services Inc. said it allocated $212 million to expand the main port in Manila and three other projects overseas.
ICTSI, led by billionaire Enrique Razon Jr., said in a disclosure to the stock exchange, it would use unappropriated retained earnings of $212 million for capital expenditures for new and existing projects in Manila, Operadora Portuaria Centroamericana S.A. de C.V. in Honduras, Basra Gateway Terminal in Iraq and Contecon Manzanillo S.A. in Mexico.
The company programmed $380 million in capital expenditures in 2018, up from $240 million it spent in 2017.
The capex for this year is mainly allocated for the capacity expansion of its terminal operations in Manila, Mexico and Iraq; continuing rehabilitation and development of the company’s container terminal in Honduras; procurement of additional equipment and minor infrastructure works in its newly acquired terminal operations in Papua New Guinea; and the completion of a new barge terminal project in Cavite City.
ICTSI earlier reported a net income of $207.7 million last year, up 7 percent from $193.5 million in 2016.
Gross revenues reached increased 10 percent in 2017 to $1.24 billion from $1.13 billion in 2016.
ICTSI handled consolidated volume of 9,153,458 twenty-foot equivalent units in 2017, or 5 percent more than the 8,689,363 TEUs handled in 2016.
The company said the increase in volume was primarily due to continuing improvement in global trade activities particularly in emerging markets; continuing ramp-up at ICTSI’s operations in Basra, Iraq; new services at Manzanillo, Mexico; and contribution of new terminals in Matadi, DRC and Melbourne, Australia.
Excluding the new terminals, consolidated volume would have increased 4 percent.
Consolidated cash operating expenses in 2017 increased 13 percent to $475.9 million from $419.6 million in 2016.
The increase in cash operating expenses was mainly due to the cost contribution of the new terminal operations in Matadi, DRC and Melbourne Australia, higher throughput, increase in fuel prices and power rates at certain terminals and unfavorable translation impact of the BRL appreciation at Suape, Brazil.
The increase was tapered by the additional benefits of the on-going group-wide cost optimization initiatives and the favorable translation impact, it said.