ICTSI H1 profit up 22% on brisk volumes, new ports

MANILA, Philippines — Global ports giant International Container Terminal Services Inc. (ICTSI) weathered a “more challenging” first half to post a 22-percent increase in net income to $641.39 million, driven by higher cargo volumes and contributions from newly acquired terminals in South Africa and Indonesia.

In a disclosure on Monday, the Enrique Razon Jr.-led ports operator said first-half profit had risen from $524.06 million a year earlier.

READ: ICTSI gets 25 years more at Manila port

Article continues after this advertisement

For the second quarter alone, net income climbed 24 percent to $326.7 million from $263.03 million in the same period last year.

The strong earnings came despite what ICTSI described as a more difficult operating environment in some markets. Consolidated throughput rose 16 percent to 8.12 million twenty-foot equivalent units (TEUs) in the first six months, from 6.99 million TEUs a year earlier.

“Despite a more challenging operating backdrop in some markets during the period, our diversified footprint continued to provide resilience and support strong financial and operational performance,” said Razon, who chairs ICTSI.

Revenue from port operations increased 27 percent to $1.92 billion.

ICTSI attributed the higher cargo volumes mainly to the start of operations at Durban Gateway Terminal, which had taken over Pier 2 at the Port of Durban in South Africa in January and Batu Ampar Container Terminal in Batam, Indonesia, where operations had begun last September.

Article continues after this advertisement

The company also cited stronger trade activity across Asia and the Americas, although this was partly offset by weaker volumes in Europe and the Middle East due to geopolitical tensions, as well as the sale of its stake in Yantai International Container Terminal in China.

Excluding a nonrecurring charge related to the Yantai divestment, ICTSI said net income attributable to equity holders would have increased 25 percent to $604.69 million.

Article continues after this advertisement

READ: ICTSI starts 2026 strong with 21% jump in Q1 profit

Cash operating expenses rose 39 percent to $529.34 million, reflecting startup costs for the Durban terminal, higher fuel prices linked to the Middle East conflict, government-mandated wage adjustments and unfavorable foreign exchange movements affecting its operations in Brazil, Mexico and Australia.

Capital expenditures reached $320.05 million in the first half, equivalent to 43 percent of the company’s $740-million spending program for 2026. The budget will fund expansion projects in Mexico, the Philippines, Brazil, the Democratic Republic of the Congo, Honduras, Australia and Ecuador.

Looking ahead, Razon said ICTSI’s geographically diversified portfolio would continue to help the company navigate a volatile global operating environment.

“We remain focused on executing our expansion programme, integrating new operations, and maintaining financial discipline across the business,” he said. “We continue to invest to strengthen capacity and service levels across our portfolio while supporting sustainable long-term growth.” INQ