Revenue was up by 16% compared with the second quarter of 2006, while net income improved by 12%. For the six months ending June 30, net income totalled P=1.045bn billion, a year-on-year increase of 23%, while net income improved by 41% over the same period.
The company’s port operations in Manila, Poland, Brazil and Madagascar continued to be the main growth drivers. Combined revenues from these four operations grew by 12% year-on-year, accounting for 71% of revenues for the period. New subsidiaries in Indonesia, China and Davao (Philippines) contributed 27% of revenue growth during the quarter.
International operations accounted for 56% of the quarter’s consolidated net income, compared with 39% in the second quarter of 2006 and 60% for the full year 2006. Their contribution would have been higher, said the company, but for a 13% appreciation of the Philippine peso against the US dollar (66% of ICTSI’s gross revenues are in foreign currencies).
“Our Manila flagship terminal reported above 10% volume growth year-on-year. Brazil, Poland and Madagascar delivered very strong financial performance in the second quarter,” said Enrique K. Razon Jr, ICTSI chairman and president.
He added: “Our recent acquisitions in Indonesia and Davao are already producing good results; these were offset by start-up costs at our new operations in Syria and China. For the rest of the year and into 2008, we will focus our efforts in the start-up operations of our new terminals in China, Ecuador and Syria, and the development of a new terminal in Colombia, while continuing to look for new business opportunities in port operations.”
ICTSI handled a consolidated volume of 642,274 teu during the second quarter, 40% higher than the 458,370 teu handled in the second quarter of 2006. For the first half of 2007, it handled 1,284,748 teu, compared with 917,773 in 2006.
Domestic operations accounted for 60% of consolidated volumes for the quarter, a 28% increase over the same period of 2006. Foreign container volumes amounted to 255,822 teu, 64% up on last year. Foreign container traffic now accounts for 40% of the group’s total, compared with 34% in the second quarter last year.
In the first six months of 2007, ICTSI invested P=5.4bn to fund capacity expansion in Manila, Brazil and Madagascar and start-up costs in China, Syria, Ecuador and Colombia. In March it acquired a 60% percent equity stake in Yantai Rising Dragon International Container Ltd in China, and in July agreed to commence the construction and development of a multi-user container terminal at the Port of Buenaventura in Colombia. Wholly-owned subsidiary Contecon Guayaquil SA commenced operations at the Port of Guayaquil, Ecuador effective August 1.