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ICTSI profit soars 73% in first nine months

  • International Container Terminal Services, Inc. saw a 73% increase in net income for the first nine months of 2021
  • The performance was attributed to considerable improvement in trade activities as economies continued to recover from the impact of the COVID-19 pandemic and lockdown restrictions eased
  • ICTSI handled 8.267 million TEUs in the first nine months of 2021, up 11% year-on-year
  • Revenue from port operations reached $1.365 billion, an increase of 24% from the same period last year

International Container Terminal Services, Inc. (ICTSI) reported a net income attributable to equity holders of US$316.4 million in the first nine months of 2021, 73% more than the $182.6 million earned in the same period last year.

“We have seen a considerable improvement in trade activities and outperformance in Asia, the Americas and EMEA [Europe, Middle East, and Africa] as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions ease. This has led to strong performance this quarter for ICTSI,” group chairman and president Enrique Razon, Jr. said in a statement.

Revenue from port operations from January to September 2021 amounted to $1.365 billion, an increase of 24% from the $1.104 billion reported in the same period last year.
ICTSI said the revenue improvement was mainly due to higher volume; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services; contribution of new terminals; and net favorable impact of foreign exchange at certain terminals.

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

ICTSI handled a consolidated volume of 8.267 million twenty-foot equivalent units (TEUs) in the first nine months of 2021, which is 11% more than the 7.426 million TEUs handled in the same period in 2020.

The port operator said the increase in volume was primarily due to volume growth and improvement in trade activities, and to new shipping lines and services at certain terminals. For the third quarter alone, total consolidated throughput was 7% higher at 2.807 million TEUs compared to 2.627 million TEUs in 2020.

Consolidated cash operating expenses in the first nine months of 2021 were 16% higher at $383.2 million compared to $331.6 million in the same period in 2020, mainly due to the increase in equipment and facilities-related expenses and contracted services resulting from higher volume; additional cost associated with the new terminals; and unfavorable foreign exchange effect at certain terminals.

For the first nine months of the year, the port operator’s capital expenditures amounted to $104 million, which was mainly used to fund the ongoing expansion at Manila International Container Terminal (MICT) and ICTSI DR Congo (IDRC), and to acquire port facilities and equipment at International Container Terminal Services Nigeria Ltd. in the Port of Onne in Nigeria.

The group’s capital expenditure budget for 2021 of approximately $250 million is programmed 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 for various maintenance requirements.

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