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International Container Terminal Services, Inc. jumped 50% in the first half of the year
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The global port operator also reported a 20% increase in revenues and 5% growth in container volumes
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The results followed improvement in trade activities as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic
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ICTSI handled a consolidated volume of 5.753 million TEUs in the first half of the year, 5% higher than 5.46 million TEUs year-on-year
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Capital expenditures amounted to $231.3 million for the first six months of 2022
International Container Terminal Services, Inc.’s (ICTSI) net income attributable to equity holders jumped 50% to $294.5 million in the first half of the year from $196.7 million year-on-year.
The results were primarily due to higher operating income, higher net foreign exchange gain and increase in equity share in net profit of joint ventures. They are also a result of strong contribution of new terminals, partially tapered by increase in depreciation and amortization, and interest on loans, concession rights payables and lease liabilities, the company said in a statement.
Enrique K. Razon, Jr., ICTSI chairman and president, said: “We have delivered another period of strong operational and financial results across our global portfolio with throughput growth of five percent. Revenues grew by 20% to US$1.06 billion and EBITDA increased by 26% to US$672.1 million driven by volume growth, strong contribution from new terminals and an improvement in trade activities as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic.
Equity share in net profit of joint ventures increased in the first half of 2022 by 308% to $3.0 million from $742,000 for the same period in 2021 due to the company’s share in higher net earnings in Manila North Harbour Port, Inc. and lower net loss in Sociedad Puerto Industrial Aguadulce S.A.
Diluted earnings per share for the first half of 2022 surged 68% to $0.135 compared to $0.081 in the same period in 2021 due to higher net income and lower cumulative distributions to holders of perpetual capital securities.
Diluted earnings per share for the second quarter of 2022 was 57 percent higher at US$0.070 compared to US$0.045 in the same period in 2021.
The global port operator also reported a 5% growth in container volumes for the first half with improvement in trade activities as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic.
The port operator handled a consolidated volume of 5.753 million twenty-foot equivalent units (TEUs) in the first six months, 5% more compared to the 5.46 million TEUs handled in the same period in 2021.
The growth is primarily due to volume growth and general 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.
For the second quarter alone, total consolidated throughput was 6% higher at 2.92 million TEUs vis-a-vis 2.752 million in 2021.
Consolidated cash operating expenses for the first half was 14% higher at $283.9 million compared to $248.2 million in 2021. The increase was mainly due to additional cost associated with the new terminals in Philippines, Nigeria and Brazil; higher equipment and facilities-related expenses resulting from increase in prices and consumption of fuel and power driven by volume growth; higher contracted services and overtime as a result of volume increase at certain terminals; government-mandated and contracted salary adjustments; and unfavorable foreign exchange effect of BRL-based expenses at ICTSI Rio and Tecon Suape S.A. in Brazil.
Capital expenditures amounted to $231.3 million for the first six months of 2022.
These were mainly for ongoing expansion projects at Manila International Container Terminal in the Philippines, Victoria International Container Terminal in Melbourne, Australia, ICTSI DR Congo S.A. in Matadi, Democratic Republic of Congo; Contecon Manzanillo S.A. de C.V. in Manzanillo, Mexico, and the acquisition of land in the Philippines and in Brazil for new projects.
The group’s capital expenditure budget for 2022 is approximately $330 million. This will be used mainly for the payment of 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.
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