SHARES IN RAZON-LED International Container Terminal Services, Inc. (ICTSI) declined last week as trade tensions initiated by the US weakened investor sentiment, outweighing the company’s strong earnings and expansion developments.
Data from the Philippine Stock Exchange showed that ICTSI was the second-most actively traded stock in terms of value turnover, with P2.78 billion worth of 7.39 million shares changing hands from March 10 to 14.
The listed port operator’s shares closed at P381 each on Friday, inching down 1% from its March 7 close of P385. Year to date, the stock also declined by 1.3%.
Analysts attributed the port operator’s decline to trade tensions initiated by the US.
Claire T. Alviar, research analyst at Philstocks Financial, Inc., said the listed port operator traded sideways due to concerns about the global economy, particularly the trade tensions initiated by US President Donald J. Trump, which may have impacted market sentiment.
“These trade disputes are expected to negatively impact the global economy, which could, in turn, affect ICTSI’s business operations,” Ms. Alviar said in a Viber message.
Mr. Trump’s increased tariffs on all US steel and aluminum imports took effect last Wednesday, stepping up his campaign to reorder global trade in favor of the United States while Europe and Canada swiftly retaliated, Reuters reported.
Mr. Trump’s plans for tariffs — and their back-and-forth implementation since he took office in January — have upended industries from cars to energy and unnerved businesses and investors.
Reuters added that worries over rising costs reigniting inflation and souring consumer sentiment, which could herald a US recession, have caused stock markets to plunge.
Aniceto K. Pangan, equity trader at Diversified Securities, Inc., said the strong earnings of ICTSI, along with positive market sentiment driven by the strong earnings of listed companies in the fourth quarter of 2024, propelled ICTSI shares during the week and contributed to the local bourse in general.
He added that ICTSI’s capital expenditures for this year also fueled the port operator’s movement last week, as they were solely for global expansion.
Last week, ICTSI saw developments, including its unit Matadi Gateway Terminal (MGT) in the Democratic Republic of the Congo, as well as an increase in its net income in 2024.
MGT is undertaking key projects this year to enhance operational efficiency and customer service, reinforcing Matadi’s status as the country’s premier maritime hub.
One major initiative is the construction of a 2.65-kilometer road connecting the Port of Matadi to the Kinkanda traffic circle via SEP (Services des Entreprises Pétrolières) Congo and Route Nationale 14 (RN 14).
Once completed, the improved roadway is expected to reduce container dwell times and streamline cargo deliveries. It will also help alleviate congestion in the western part of Matadi, benefiting both the terminal and the surrounding local community.
MGT’s prospects also include expanding its storage yard to accommodate the consistently growing cargo volumes.
This expansion is crucial for maximizing storage capacity and ensuring the terminal meets increasing customer demand.
Ms. Alviar noted that this is a positive development for ICTSI, as enhancing operational efficiency and streamlining cargo deliveries should contribute positively to the company’s bottom line.
“The improved roadway infrastructure is likely to reduce logistical bottlenecks, strengthening Matadi’s position as a key maritime hub and potentially driving revenue growth,” she added.
Additionally, in 2024, ICTSI’s attributable net income grew by 66.1% to $849.80 million from $511.53 million a year earlier.
Meanwhile, consolidated revenues increased by 14.7% to $2.74 billion from $2.39 billion in 2023.
ICTSI Chairman and President Enrique K. Razon, Jr. said in a press release that ICTSI achieved yet another set of excellent results, marking the company’s highest net income in history at $849.80 million, along with increased revenues, which give the port operator the “financial strength and flexibility to pursue new opportunities and invest in existing projects.”
The growth in net income is mainly attributed to its operations in Asia, which generated $1.14 billion last year, 9.6% higher than the $1.04 billion in 2023.
ICTSI added that the increase in gross revenues was primarily due to volume growth with a favorable container mix, tariff adjustments, higher revenues from ancillary services, and growth in general cargo activities in certain terminals.
Meanwhile, capital expenditures in 2024 reached $517.14 million. For 2025, ICTSI is allocating $580 million for capital expenditures, which will be used for the development of Southern Luzon Gateway in the Philippines and planned expansions at ICTSI Rio in Brazil and Mindanao Container Terminal (MCT).
“With the ongoing expansion of ICTSI in Matadi, plus the government’s focus on improving the flow of containers from the port through road improvement, this will contribute to ICTSI’s growth moving forward,” Mr. Pangan said in a Viber message.
He noted that ICTSI will sustain its growth trajectory with its bullish expansion given its earnings results in 2024.
He placed immediate support at P320 per share, while immediate resistance is at P390 per share.
For Ms. Alviar, investors may consider ICTSI as long as the company maintains strong financial performance and continues executing its expansion plans.
“These factors could support investor confidence and sustain long-term growth prospects,” she added.
She pegged immediate support at P370, while resistance is pegged at P400.
“Additionally, the 200-day exponential moving average is serving as a dynamic support level,” Ms. Alviar added. — Abigail Marie P. Yraola
