Razon-led global port giant International Container Terminal Services Inc. (ICTSI) sustained its growth momentum in the first half despite the backdrop of the Middle East conflict, with net income rising 22 percent to nearly $590 million.

Based on its regulatory disclosure on Monday, Aug. 3, ICTSI’s attributable net income climbed to $589.98 million in the January-to-June period from $484.84 million in the same period last year.

The company’s revenues expanded by more than a quarter to $1.92 billion from $1.51 billion a year ago, helping offset the faster increase in expenses.

ICTSI said its expenses surged 39 percent to $529.34 million in the first six months as it incurred higher operating expenses (opex) and fuel costs due to the conflict in the Middle East.

The company also had to contend with unfavorable foreign exchange (forex) effects, mainly involving the Brazilian real, Mexican peso, and Australian dollar.

These were partly offset by cost optimization measures and favorable forex effects from the depreciation of the Philippine peso.

Global trade demand remained robust in the first half, with ICTSI handling a combined volume of 8.16 million twenty-foot equivalent units (TEUs), up 16 percent from 6.99 million TEUs a year ago.

In fact, trade volume in Europe, Middle East, and Africa (EMEA) soared 43 percent as of end-June, while volumes in the Americas and Asia increased 14 percent and seven percent, respectively.

The increase in trade volumes came despite disruptions in global shipping across air and sea freight networks, coupled with higher fuel costs that continued to make logistics more expensive.

ICTSI Chairman and President Enrique K. Razon Jr. said this makes it crucial for the company to continue expanding its port assets in strategic locations to sustain demand for its services even as some markets experience slower growth.

“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,” he said in a statement.

ICTSI recently added Durban Gateway Terminal in South Africa and Batu Ampar Container Terminal in Indonesia to its growing global portfolio.

To sustain its growth momentum into the second half, Razon said the company remains focused on executing its expansion program and integrating its new operations.

ICTSI has set aside $740 million in capital expenditures (capex) this year, of which $320.05 million, or 43 percent, had already been invested in the six months through June.

The port operator is expanding its domestic facilities, including Manila International Container Terminal (MICT), Mindanao Container Terminal (MCT), and South Luzon Container Terminal (SLCT).

It is also investing heavily overseas to complete expansion projects in Mexico, Brazil, and Democratic Republic of the Congo (DRC). Under its capex program, the company is likewise funding expansion projects in Honduras, Australia, Ecuador, and Mexico.

“We continue to invest to strengthen capacity and service levels across our portfolio while supporting sustainable long-term growth,” Razon said.