ICTSI income jumps 44% on higher operating profit

RAZON-led International Container Terminal Services, Inc. (ICTSI) recorded a 44.3% increase in its attributable net income to $618.46 million in 2022 due to higher operating income.

“[The increase is] primarily due to higher operating income; partially tapered by increase in depreciation and amortization charges, interests on loans, lease liabilities and concession rights payable, provision for income taxes, and nonrecurring impairment charges,” the listed port operator said in a press release on Monday.

Revenues from operations increased by 19.8% to $2.24 billion from $1.87 billion in 2021, while its earnings before interest, taxes, depreciation, and amortization went up by 23.7% to $1.41 billion in 2022 from $1.14 billion a year earlier.

The company saw a 9% increase in the consolidated volume it handled in 2022 to 12.22 million twenty-foot equivalent units (TEUs) from 11.16 million TEUs last year.

“The increase in volume was primarily due to [the] consolidation of Manila North Harbour Port, Inc. in Manila starting September 2022, volume growth and improvement in trade activities as economies continue to recover from the impact of the coronavirus-2019 pandemic and lockdown restrictions; and new shipping lines and services at certain terminals,” ICTSI said.

For 2023, the company is earmarking a capital expenditure (capex) of approximately $400 million mainly for the ongoing constructions of ICTSI’s terminals, the second tranche of concession extension, expansions in Nigeria and Brazil, development of a terminal in Indonesia, and equipment acquisitions.

ICTSI’s capex for 2022 reached $386.35 million, which it attributed to the ongoing expansions in its Victoria International Container Terminal in Australia and Manila International Container Terminal, ICTSI D.R. Congo S.A., and Contecon Manzanillo S.A. de C.V. in Mexico.

The company has also allotted capital for the acquisitions of land at the Port of Manila and concession-extension-related expenditures at Madagascar International Container Terminal Services Ltd.

“In a year marked by geopolitical unrest and inflationary pressures, we took clear and robust actions to focus on our cost initiatives and implemented a selective and disciplined capex program which has pleasingly created value for our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement.

ICTSI manages and operates container terminals in the 50,000 to 3.5 million TEUs per year range. It operates 33 terminals in 20 countries across six continents.

Its shares on Monday climbed by P7.00 or 3.5% to finish at P207 each on the stock exchange. — Justine Irish D. Tabile