Port giant International Container Terminal Services Inc. (ICTSI) saw profits expand by almost half from January to September on the back of the global economic recovery.
In absolute terms, ICTSI reported net income attributable to shareholders of $465.1 million, a 47 percent increase from $316.4 million in the prior year, “primarily due to higher operating income, net foreign exchange gains, equity portion of Joint net income ventures, and interest income; partially reduced by increased interest on loans, lease and concession rights liabilities, and depreciation and amortization costs.”
Gross revenue from port operations for the nine-month period of $1.64 billion was 20 percent higher than the $1.37 billion reported for the same period in 2021, primarily due to volume growth and market recovery from the impact of the pandemic ; favorable container mix; fare adjustments at certain terminals; new contracts with shipping companies and services; and higher ancillary revenue; among other.
ICTSI handled a consolidated volume of 8,856,303 TEUs (Twenty-Foot Equivalent Units) from January to September, 7 percent more than the 8,266,621 TEUs handled during the same period in 2021.
“We have delivered seven consecutive quarters of double-digit consolidated revenue growth, which has helped offset inflationary pressures, as our excellent performance is driven by volume growth, cost control and operational discipline,” said ICTSI Chairman Enrique K. Razon.
Consolidated cash operating expenses for the period increased 14 percent to $438.1 million compared to $383.2 million for the same period in 2021, while consolidated financing and other expenses increased 24 percent to $130.8 million US dollars from US$105.5 million in the previous year.
Capital expenditure (Capex) for the nine months was $281.3 million. These served to expand the ports in the Philippines, Australia, the Democratic Republic of the Congo and Mexico and to acquire land in the Philippines and Brazil for new projects.
ICTSI has committed $330 million in investments for 2022.
“We are keeping a close eye on the macroeconomic environment and the potential impact this could have on our business, but remain confident that we are well positioned to weather the SE headwinds through our agility, diversified portfolio and strong balance sheet . Our highly disciplined and talented team remains determined to work to the benefit of our stakeholders – always guided by our goal of making ports around the world an engine for positive and sustainable growth,” said Razon.