International Container Terminal Services Inc. is looking for more opportunities despite the global economic slowdown while exercising prudent spending.
“We will spend very prudently but we will continue to be very active looking for projects. When there’s little confidence in the global economy it makes a lot of opportunities for us,” Christian Gonzalez, senior vice president and Global Corporate head of the ICTSI Group, told reporters on Friday.
The International Monetary Fund in its World Economic Outlook in July said global growth remained subdued, forecasting a 3.2-percent economic expansion this year, 0.1 percentage point lower than its projection in April this year. The global economy is projected to grow 3.5 percent in 2020.
ICTSI in June won a 25-year contract to develop, operate and maintain a port terminal in Africa.
ICTSI owned by tycoon Enrique Razon Jr. said it was declared the preferred bidder for the concession to develop, operate and maintain the Multi-Purpose Terminal of the Port of Kribi by the Port Autonome de Kribi on June 14.
The Port of Kribi is located in Cameroon, Central Africa. It is a newly-built port with deep draft. The Multipurpose Terminal consists of 265 meters of berth and 10 hectares of yard.
Gonzalez said ICTSI was negotiating its contract in Cameroon. The concession contract has a duration of 25 years, or until 2045.
ICTSI earlier reported a net income of $72.4 million in the first quarter of the year, up 77 percent from $40.9 million in the same period last year.
The company’s gross revenues from operations amounted to $383.8 million in the first quarter of the year, up 18 percent from $325.4 million year-on-year.
ICTSI handled the consolidated volume of 2,478,672 twenty-foot equivalent units, seven percent more than 2,325,540 TEUs handled in the same period in 2018.
The increase in volume was primarily due to improvement in trade activities, new shipping lines and services and continuous volume ramp-up at certain terminals.
ICTSI’s capital expenditures for the year amounted to $380 million, mainly for the ongoing expansion projects in Manila, Mexico and Iraq, equipment acquisitions and upgrades, and maintenance requirements.