ICTSI net income up 49% in Q1

International Container Terminal Services, Inc.'s flagship, Manila International Container Terminal. Photo from ICTSI.
  • ICTSI’s net income in the first quarter of 2021 grew 49% year-on-year
  • Volume, revenue and earnings rose across three regions: Asia, the Americas, and Europe, Middle East, and Africa
  • ICTSI handled a consolidated volume of 2.71 million TEUs, 8% higher from the same period in 2020
  • Capital expenditures for the quarter amounted to $36.3 million

International Container Terminal Services, Inc. (ICTSI) reported a net income of US$102.3 million in the first quarter of 2021, a 49% increase from the $68.8 million net income logged in the same period last year.

Net income attributable to equity holders reached $90.1 million, 51% more than the $59.6 million earned in the same period last year, ICTSI said in a statement.

“ICTSI has delivered strong operating performance in the first quarter of 2021, with volume, revenue and earnings rising across our three regions: Asia, the Americas, and Europe, Middle East, and Africa,” said ICTSI chairman and president Enrique Razon, Jr.

“We have seen improvements in most of our terminals as economies continue to recover from the pandemic as well as significant contributions from new shipping lines and services,” he added.

Revenue from port operations amounted to $435.6 million, up 16% over the $375.8 million reported for the same period last year. This was mainly due to volume growth, favorable container mix, tariff adjustments at certain terminals, new contracts with shipping lines and services, and increased storage and ancillary services particularly in the Americas segment.

The increase was partially tapered, however, by a decline in trade activities at certain terminals primarily due to the impact of COVID-19 pandemic.

For the first quarter of 2021, ICTSI handled a consolidated volume of 2.708 million twenty-foot equivalent units (TEUs), 8% higher than the 2.509 million TEUs handled in the same period in 2020. ICTSI said the increase was primarily due to improvement in trade activities as economies recovered from the impact of the pandemic, as well as new shipping lines and services at the company’s operations overseas.

Consolidated cash operating expenses in the first quarter of 2021 was 3% higher at $122.4 million compared to $119 million in the same period in 2020. The increase was mainly due to the cost contribution from the new projects; increase in contracted services in relation to volume; and unfavorable foreign exchange effects of Australian dollar-based expenses and Philippine-peso based expenses. The higher expenses were partially tapered by continuous cost optimization measures, and favorable foreign exchange effect of Iraqi dinar-based expenses and Brazilian reais-based expenses.

Capital expenditures for the first quarter of this year amounted to $36.3 million. These were mainly spent on the ongoing expansion at Manila International Container Terminal (MICT) in the Philippines and ICTSI DR Congo (IDRC) in Matadi, Democratic Republic of Congo; and acquisition of port facilities and equipment at International Container Terminal Services Nigeria Ltd. in Port of Onne, Rivers State, Nigeria.

The group’s capital expenditure budget for 2021 is about $250 million, to be utilized mainly for the completion of the expansion project at MICT; the ongoing yard expansion at IDRC; the new expansion project at Victoria International Container Terminal in Melbourne, Australia; equipment acquisitions and upgrades; and various maintenance requirements.

ICTSI is involved in 33 terminal operations, including concessions and port development projects, in 20 countries worldwide.