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International Container Terminal Services Inc. has posted net income of US$507 million for the first nine months of 2022, up 44% from $352.7 million it reported for the same period last year
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Revenue from port operations grew 20% while volumes handled rose 7% to 8.856 million TEUs
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Capital expenditure for the January-September period totaled $281.3 million
International Container Terminal Services, Inc. (ICTSI) reported a net income of US$507 million for the first nine months of 2022, up 44% from the $352.7 million it achieved during the same period last year.
Revenue from port operations from January to September 2022 totaled $1.64 billion, up 20% from $1.37 billion reported for the same period in 2021.
The growth came mainly from volume expansion and market recovery from the impact of the pandemic; a favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenue from ancillary services; contributions from Manila North Harbour Port Inc. and new terminals Manila Harbor Center Port Services Inc. (MNHPI); International Container Terminal Services Nigeria Ltd. (ICTSNL); and IRB Logistica in Brazil.
Earnings before interest, tax, depreciation and amortization grew 25% to $1.04 billion from $829.4 million, while net income attributable to shareholders rose 47% to $465.1 million from $316.4 million.
For the third quarter alone, revenue from port operations increased 20% to $576.7 million from $482.4 million.
“We have delivered seven consecutive quarters of double-digit consolidated revenue growth, which has helped offset inflationary pressure with our excellent performance being driven by volume growth, cost control and operating discipline,” ICTSI chairman and president Enrique K. Razon Jr. said in a statement.
“We remain mindful of the macroeconomic environment and the potential impact this may have on our business, but remain confident that we are well-positioned to navigate these headwinds through our agility, diversified portfolio and strong balance sheet. Our highly disciplined and talented team continues to work resolutely for the benefit of our stakeholders – all the time guided by our purpose, to make ports around the world a driver for positive and sustainable growth.”
ICTSI handled a consolidated volume of 8.86 million twenty-foot equivalent units (TEUs) in the first nine months of 2022, a 7% growth from the 8.27 million TEUs handled in the same period in 2021.
The increase in volume came primarily from volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; new shipping lines and services at certain terminals; and contributions from MNHPI and ICTSNL, the company’s new terminal in Port of Onne, Nigeria.
Consolidated cash operating expenses in the first nine months of 2022 were 14% higher at $438.1 million compared with $383.2 million in the same period in 2021.
This was mainly due to the cost contribution of new businesses; an increase in equipment and facilities-related expenses, mainly fuel; government-mandated and contracted salary rate adjustments; contracted services in relation to volume; and the unfavorable foreign exchange impact.
Capital expenditure for the January-September period reached $281.3 million. This was mainly due to ongoing expansion projects at Manila International Container Terminal, Victoria International Container Terminal in Australia; ICTSI DR Congo S.A.; Contecon Manzanillo S.A. de C.V. in Mexico; and the acquisition of land in the Philippines and in Brazil for new projects.
The capital expenditure budget for 2022 is about $330 million, to be used mainly for paying the concession extension upfront fees at Madagascar International Container Terminal Services Ltd.; ongoing expansion at the company’s terminals in Congo, Australia, Mexico and the Philippines; equipment acquisitions and upgrades; and for various maintenance requirements.
ICTSI operates 34 terminal concessions and port development projects in 20 countries around the world.
