INTERNATIONAL Container Terminal Services, Inc. (ICTSI) posted a 21% increase in attributable net income for the second quarter (Q2), driven by higher revenues from port operations, as cargo volumes and contributions from new terminals boosted its performance.

Attributable net income rose to $296.41 million for the April-to-June period from $244.88 million a year earlier, the company said in a disclosure on Monday.

The company has allocated $740 million in capital expenditures this year, primarily for expansion projects in Mexico, the Philippines, and Brazil.

Gross revenue increased 25.38% to $958.73 million from $764.63 million, while total expenses climbed 34.24% to $449.28 million from $334.68 million.

"We remain focused on executing our expansion program, integrating new operations, and maintaining financial discipline across the business. We continue to invest to strengthen capacity and service levels across our portfolio while supporting sustainable long-term growth," ICTSI Chairman and President Enrique K. Razon, Jr. said.

For the first six months, attributable net income increased 21.94% to $589.98 million from $483.84 million in the same period last year.

Gross revenue for the January-to-June period rose 27.15% to $1.92 billion from $1.51 billion.

"ICTSI delivered a strong first half, with double-digit growth in volumes, revenues and earnings supported by contributions from recently added terminals and stable performance across our existing portfolio. 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," Mr. Razon said.

The company attributed revenue growth to higher cargo volumes and a favorable container mix, increased revenues from ancillary services, and sustained contributions from Durban Gateway Terminal and Batu Ampar Container Terminal. It also said favorable foreign exchange translation benefited operations in Brazil and Australia.

For the first half, consolidated container throughput increased 16.1% to 8.12 million twenty-foot equivalent units (TEUs) from 6.99 million TEUs a year earlier.

Asia accounted for the largest share of throughput at 3.95 million TEUs, followed by the Americas with 2.23 million TEUs, and Europe, the Middle East, and Africa (EMEA) with 1.94 million TEUs.

By region, Asia generated $753.26 million in revenue during the first half, while the Americas contributed $750.96 million, and EMEA accounted for $415.62 million.

ICTSI said favorable foreign exchange movements partly offset lower volumes at Basra Gateway Terminal in Iraq, the deconsolidation of Yantai International Container Terminals Ltd. (YICTL) in China, and the unfavorable translation impact from the depreciation of Philippine peso-denominated revenues.

The company previously divested its stake in YICTL, which operates a container terminal in Shandong province, China.

Excluding nonrecurring charges related to the sale of YICTL, attributable net income for the first half would have increased 25% to $604.94 million, ICTSI said.

Capital expenditures, excluding borrowing costs, reached $320.05 million in the first half.

The company has allocated $740 million in capital expenditures this year, primarily for expansion projects in Mexico, the Philippines, and Brazil.

ICTSI operates ports in 20 countries across Asia, the Americas, Europe, the Middle East, and Africa.

At the Philippine Stock Exchange on Monday, ICTSI shares gained P42, or 4.36%, to close at P1,005 each. — Ashley Erika O. Jose.