ICTSI net profit up 50% in first half – Manila Bulletin


Global port operator International Container Terminal Services Inc. (ICTSI) posted a 50% increase in net profit to $294.5 million in the first half of this year from $196.7 million in the same period of 2021, mainly due to higher operating profit, higher net foreign exchange gain, increased share in net income of joint ventures and strong contribution from new terminals.

Enrique K. Razon, Jr., Chairman and President of ICTSI. first six months of 2021.

The terminal operator’s earnings before interest, taxes, depreciation and amortization (EBITDA) were $672.1 million, 26% higher than the $532.5 million generated in the same period. last year.

“We delivered another period of strong operational and financial results across our global portfolio with throughput growth of 5%,” Razon said.

“Revenues increased 20% to $1.06 billion and EBITDA increased 26% to $672.1 million, driven by volume growth, strong contribution from new terminals and improved business operations as economies recover from the impact of lockdown restrictions and COVID-19. pandemic.”

“Over the years, we have demonstrated our resilience and the benefits of having a clear strategic market position and a disciplined, goal-oriented culture. Despite the external challenges, we remain confident in the ability to drive growth in our global business and generate long-term sustainable value for the benefit of all our stakeholders. »

For the three months ended June 30, 2022, worldwide port operations revenue increased 20% from $447.0 million to $534.6 million.

EBITDA increased 25% to $334.3 million from $267.7 million; and net income attributable to shareholders was $152.2 million, 43% higher than the $106.6 million for the same period in 2021.

Diluted earnings per share for the second quarter of 2022 were 57% higher at $0.070 compared to $0.045 for the same period in 2021.

ICTSI handled a consolidated volume of 5,752,582 twenty-foot equivalent units (TEUs) in the first six months of 2022, 5% more than the 5,459,523 TEUs handled during the same period in 2021

This was primarily due to volume growth and generally improving business operations as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new shipping lines and services at some terminals.

For the quarter ended June 30, 2022, consolidated total throughput increased 6% to 2,919,581 TEUs from 2,751,731 TEUs in 2021.

Gross revenue from the Company’s global port operations for the first half of 2022 increased 20% to $1,062.9 million from $882.6 million recorded in the same period of 2021, primarily due to volume growth in most terminals.

Favorable container mix; tariff adjustments on certain terminals; new contracts with shipping companies and services; higher revenues from ancillary services and the contribution of the new Manila Harbor Center Port Services, Inc. (MHCPSI) terminals in the Philippines, International Container Terminal Services Nigeria Ltd. (ICTSNL) in Nigeria and IRB Logistica in Brazil also contributed.

Excluding the contribution of new terminals in the Philippines, Nigeria and Brazil, consolidated gross revenue from its global port operations would have increased by 17% in the first half of 2022. For the second quarter of 2022, gross revenue increased by 20%, from $447.0 million. at $534.6 million.

Consolidated cash operating expenses in the first six months of 2022 increased 14% to $283.9 million from $248.2 million in 2021.

The increase in cash operating expenses is mainly due to additional costs associated with new terminals in the Philippines, Nigeria and Brazil; higher equipment and facilities expenses resulting from higher prices and consumption of fuel and electricity driven by volume growth; increased contractual services and overtime due to increased volume at some terminals; government mandated and contractual wage adjustments; and unfavorable currency effect of BRL spending at ICTSI Rio and Tecon Suape SA (TSSA) in Brazil.

Consolidated finance and other expense increased 30% to US$88.9 million for the first six months ended June 30, 2022 from US$68.6 million in 2021, primarily due to higher interest and finance charges on borrowings, primarily due to the issuance of $300 million senior notes in November. 2021 which funded the redemption of $183.8 million of 5.875% and $85.2 million of 4.875% Senior Secured Perpetual Securities with redemption dates in 2022 and 2024, respectively; the consolidation of the outstanding loan of the Company’s new terminal in the Philippines; and higher COVID-19 related expenses.

Capital expenditures, excluding capitalized borrowing costs, were US$231.3 million for the first six months of 2022.

These were mainly ongoing expansion projects at Manila International Container Terminal (MICT) in the Philippines, VICT in Melbourne, Australia, ICTSI DR Congo SA (IDRC) in Matadi, Democratic Republic of Congo, Contecon Manzanillo SA de CV ( CMSA) in Manzanillo, Mexico, and the acquisition of land in the Philippines and Brazil for new projects.

The Group’s capital budget for 2022 is approximately US$330.0 million.

This will mainly be used for the payment of the initial concession extension fees to Madagascar International Container Terminal Services Ltd. (MICTSL); the continued expansion of the Company’s terminals in the Democratic Republic of the Congo, Australia, Mexico and the Philippines; equipment acquisitions and upgrades; and for various maintenance needs.




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