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ICTSI net income jumps 51% to $155M in Q1
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Revenue from port operations increased 21% to $528.3 million
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Consolidated cargo volume handled rose 5%
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First-quarter capital expenditure hit $52.4 million, mainly for ongoing expansion projects
International Container Terminal Services, Inc. (ICTSI) reported a net income of $154.8 million in the first quarter this year, up 51% from the $102.3 million in the same period last year.
The net income attributable to equity holders of $142.3 million was 58% more than the $90.1 million posted year-on-year.
ICTSI chairman and president Enrique Razon Jr. in a statement said the year started well, with continued momentum from 2021 resulting in strong growth across the business. “We continue to see improvement in trade activities and, coupled with new contracts with shipping lines at certain terminals, we saw a 5% increase in throughput,” he said.
“We are cognizant of challenges ahead, as the tragic conflict in Ukraine impacts the global economy. and continue to monitor the situation carefully. However, ICTSI is a resilient business and I am confident that, together with our talented team of people, we will continue to deliver value to all our stakeholders,” he added.
Revenue from port operations increased 21% to $528.3 million in the first three months of 2022 from $435.6 million in the same period last year.
ICTSI attributed the jump mainly to volume growth at most terminals; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services, and contributions from new terminals in Nigeria, Brazil, and Manila Harbor Center Port Services Inc. in the Philippines.
The performance was dampened in part by a decline in trade activities and foreign exchange losses at certain terminals.
For the first three months of the year, ICTSI handled a consolidated volume of 2.833 million twenty-foot equivalent units (TEUs), up 5% from the same period last year’s 2.708 million TEUs.
The port operator said the increase was primarily due to a general improvement in trade activities as economies continued to recover from the impact of the pandemic; new contracts with shipping lines and services at certain terminals; and the contribution of ICTSI’s new port asset, International Container Terminal Services Nigeria Ltd. in Port of Onne, Rivers State, Nigeria.
Cash operating expenses rose 12% to $137.1 million from $122.4 million in 2021.
Capital expenditures for the first quarter totalled $52.4 million. These went mainly to ongoing expansion projects at Manila International Container Terminal, Victoria International Container Terminal, Contecon Manzanillo S.A. de C.V., and ICTSI DR Congo S.A.
The group’s capital expenditure budget for 2022 is $330 million, for use in the payment of concession extension upfront fees at Madagascar International Container Terminal Services Ltd.; ongoing expansion at the terminals in Congo, Australia, Mexico and the Philippines; equipment acquisitions and upgrades; and for various maintenance requirements.
