MANILA's International Container Terminal Services Inc (ICTSI) has posted a nine per cent year-on-year increase in net profit in the first quarter to US$154.61 million drawn on revenues of $572.25 million, an increase of eight per cent.

Cargo throughput grew nine per cent to 3.1 million TEU from January to March 2023. Earnings before interest, taxes, depreciation and amortisation (ebitda) was up five per cent to $354.2 million.

"These results have been driven by our diversified portfolio and continued focus on margins amid a challenging macroeconomic and geopolitical backdrop," said ICTSI chairman and president Enrique Razon.

"Looking ahead, while we remain cautious of continued uncertainty, ICTSI is a strong and agile business differentiated by our strategy in origin and destination gateway terminals, as well as an experienced team with a sharp focus on operational discipline, which positions us well for future growth," he said.

ICTSI handled a consolidated volume of 3.1 million TEU, up nine per cent from the 2.8 million TEU handled in the same period in 2022, primarily due to the contribution of Manila North Harbor Port Inc (MNHPI) that was consolidated starting September 2022.

Growth was offset by the cessation of cargo handling operations at PT Makassar Terminal Services (PT MTS) in Indonesia and Davao Integrated Port and Stevedoring Services Corp (Dipsscor) in Davao.

Trade activities decreased in certain terminals, particularly at Pakistan International Container Terminal (PICT), as Pakistan was hit by a severe economic crisis.

Container trade volume at Victoria International Container Terminal (VICT) in Australia contracted due to weakening domestic demand amid rising inflation.

Excluding MNHPI, Dipsscor which ceased operations in June 2022, and PT MTS which ended its operations in January 2023, consolidated volume would have decreased by one per cent in 2023.

The group's estimated capital expenditure for 2023 is $400 million. ICTSI has ongoing expansion at the terminals in Australia, Mexico, the Philippines and the Democratic Republic of Congo.