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International Container Terminal Services, Inc posted a 9% higher year-on-year net income in the first half of 2023
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Revenue from port operations grew by 10%
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The container terminal operator handled 9% more containers to 6.276 million TEUs
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Capital expenditures amounted to $152.23 million while full year capex is about $400 million
International Container Terminal Services, Inc.’s (ICTSI) net income grew 9% to US$348 million in the first half of 2023 from $319.84 million in the same period last year.
Net income attributable to equity holders rose 7% to $313.80 million from $294.48 million primarily due to higher operating income and interest income, and lower COVID-19-related expenses, the port operator said in a statement.
Revenue from port operations jumped 10% to $1.16 billion from $1.06 billion. The company attributed this growth to the contribution of Manila North Harbor Port, Inc. (MNHPI) and new businesses at IRB Logistica in Brazil; volume growth, tariff adjustments and higher revenues from ancillary services and general cargo business at certain terminals.
“ICTSI’s diversified portfolio, operational discipline and the determined focus from our fantastic team around the world has enabled us to deliver another strong financial performance,” ICTSI chairman and president Enrique Razon, Jr, said.
“We have a robust balance sheet and a highly cash generative business which looking ahead, will enable us to continue our strong track record of investing in our terminals to support future growth for the benefit of all our stakeholders,” he added.
“The macroeconomic and geopolitical climate continues to be uncertain but these results give us continued confidence in our financial and operational resilience. The opportunities for future growth are considerable and we will work closely with our stakeholders to achieve positive change for the communities in which we operate and deliver long-term sustainable growth.”
ICTSI handled consolidated volume of 6.276 million twenty-foot equivalent units (TEUs) in the first six months of 2023, up 9% from the 5.753 million TEUs in the same period in 2022.
The increase was mainly due to the contribution of MNHPI that was consolidated starting September 2022, improvement in trade activities, and new services at certain terminals; tapered by the impact of the expiration of the concession contract at Pakistan International Container Terminal; cessation of cargo handling operations at Makassar Terminal Services in Indonesia and Davao Integrated Port and Stevedoring Services Corp.; and slowdown in trade activities at certain terminals.
Consolidated cash operating expenses in the first six months of 2023 was 15% higher at $325.85 million compared to $283.86 million in 2022.
Capital expenditures for the first half of the year amounted to $152.23 million, primarily for ongoing expansion and acquisition of equipment at Contecon Manzanillo S.A. in Mexico, Victoria International Container Terminal in Australia, Manila International Container Terminal in the Philippines, and ICTSI DR Congo S.A. in Democratic Republic of Congo.
The group’s estimated capital expenditure for 2023 is $400 million. It will be used for ongoing expansion at the company’s terminals in Mexico, Australia, Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at International Container Terminal Services Nigeria Ltd. in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a recently acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for capital maintenance requirements.
Currently, the group is involved in 32 terminal operations, including concessions and port development projects, in 19 countries worldwide.
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