International Container Terminal Services Inc., the largest Philippine port operator, jumped to a record in Manila trading after the company signed a $624 million contract for a port in Honduras.
The company rose 3.7 percent to 90.50 pesos as of 2:19 p.m. in Manila, heading for the highest close since it started trading in March 1992. The stock, which earlier climbed as much as 6.5 percent, was the second-biggest contributor to the 0.9 percent gain of the benchmark Philippine Stock Exchange Index.
ICTSI, as the company based in Manila is also called, said it signed a 30-year contract to upgrade and manage the container and general cargo terminal for Puerto Cortes in Honduras. ICTSI, operator of Manila’s largest port, has 27 terminal concessions and port development projects in 19 countries including Brazil and China, according to its 2012 annual report. The company won the Honduran contract in February.
“The stock is trading on the growth of its port portfolio,” said Rico Gomez, who helps manage $2.8 billion at Rizal Commercial Banking Corp. “ICTSI has proven it can take advantage of a weak global economy by expanding its port concessions.”
ICTSI’s profit increased 9.7 percent to $143.2 million in 2012 as revenue rose 9.7 percent to $729.3 million driven by an 8 percent gain in volumes at its ports and terminals at home and abroad, according to a stock exchange filing on March 11.
The company has set a $550 million budget for capital expenditures this year, mainly to complete projects in Argentina and Mexico and to accelerate construction in Colombia and Davao, a city in southern Philippines.