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International Container Terminal Services Inc. reported a 44% jump in net income attributable to shareholders in 2022
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Total comprehensive income was also up 4.7% from 2021
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Revenue from port operations hit $2.24 billion, a 20% increase from $1.87 billion last year
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Consolidated cargo volume reached 12.22 million TEUs in 2022, a 9% growth from 11.16 million TEUs in 2021
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ICTSI’s estimated capital expenditure in 2023 is $400 million, rising from $330 million in 2022
International Container Terminal Services, Inc. (ICTSI) reported a 44% jump in net income attributable to shareholders in 2022, to $618.46 million from the previous year’s $428.57 million, primarily due to higher operating income.
For the same period, the total comprehensive income amounted to $512.318 million from $489.385 million, an increase of 4.7%.
Revenue from port operations hit $2.24 billion, a 20% surge from the previous year’s $1.87 billion.
“ICTSI delivered a strong performance in 2022 with revenues up 20% to US$2.24 billion and EBITDA [earnings before interest, taxes, depreciation, and amortization] of US$1.41 billion, an increase of 24% against the previous year, driven by tight operational controls and volume growth of 9% to 12,216,190 twenty-foot equivalent units (TEU),” ICTSI chairman and president Enrique K. Razon Jr. said in a statement.
“In a year marked by geopolitical unrest and inflationary pressures, we took clear and robust actions to focus on our cost initiatives and implemented a selective and disciplined capex programme which has pleasingly created value for our stakeholders,” Razon said.
“While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth. I would like to thank colleagues across the Group who have worked hard to deliver an excellent year of results during a choppy year and the strength of our financial and operational results is testament to their hard work and commitment.”
ICTSI handled consolidated volume of 12.22 million TEUs in 2022, up 9% from the 11.16 million TEUs handled in in 2021.
The increase in volume was primarily due to the consolidation of Manila North Harbour Port Inc. (MNHPI) in the Philippines since September 2022; volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new shipping lines and services at certain terminals.
Consolidated cash operating expenses in 2022 were 17% higher at $612.12 million compared with $523.33 million in 2021.
The increase was primarily due to costs contribution of MNHPI and new terminals; increase in equipment and facilities-related expenses, mainly fuel and power; government-mandated and contracted salary rate adjustments, including benefits; contracted services in relation to volume; and unfavorable foreign exchange effects.
Capital expenditure in 2022, excluding capitalized borrowing costs, amounted to $386.35 million. This was mainly for ongoing expansions at Victoria International Container Terminal in Melbourne, Australia; Manila International Container Terminal (MICT) in the Philippines; ICTSI DR Congo S.A. in Matadi, Democratic Republic of Congo; and Contecon Manzanillo S.A. de C.V. in Manzanillo, Mexico; the acquisition of land at the Port of Manila; and concession extension-related expenditure at Madagascar International Container Terminal Services Ltd. in Madagascar.
ICTSI’s estimated capital expenditure in 2023 is about $400 million, larger than the $330 million in 2022.
The capex will be used mainly for the ongoing expansion of ICTSI’s terminals in Australia, Mexico, Philippines and Democratic Republic of Congo; the second tranche of concession extension-related expenditure in Madagascar; yard expansion at International Container Terminal Services Nigeria Ltd. in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a newly acquired terminal in East Java, Indonesia; equipment acquisitions and upgrades; and for maintenance requirements.
ICTSI operates 33 terminals in 20 countries across six continents and continues to pursue container terminal opportunities around the world.
