Port giant International Container Terminal Services Inc. (ICTSI) saw profits widening by almost half in January to September, thanks to the global economic recovery.
In absolute terms, ICTSI booked a net income attributable to equity holders of $465.1 million, a 47-percent increase from $316.4 million the year prior “primarily due to higher operating income, net foreign exchange gain, equity share in net profit of joint ventures, and interest income; partially tapered by increase in interest on loans, lease liabilities and concession rights payable, and depreciation and amortization charges.”
Gross revenues from port operations for the nine-month period was 20 percent higher at $1.64 billion compared to the $1.37 billion reported in the same period in 2021 mainly due to volume growth and market recovery from the impact of the pandemic; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; and higher revenues from ancillary services; among others.
ICTSI handled a consolidated volume of 8,856,303 twenty-foot equivalent units (TEUs) in the January to September, 7 percent more than the 8,266,621 TEUs handled in the same period in 2021.
“We have delivered seven consecutive quarters of double-digit consolidated revenue growth which has helped offset inflationary pressure with our excellent performance being driven by volume growth, cost control and operating discipline,” ICTSI Chairman Enrique K. Razon said.
Consolidated cash operating expenses during the period was 14 percent higher at $438.1 million compared to $383.2 million in the same period in 2021, while consolidated financing charges and other expenses went up by 24 percent to $130.8 million from $105.5 million the year prior.
Capital expenditures (capex) for the nine months amounted to $281.3 million. These were used to expand ports in the Philippines, Australia, the Democratic Republic of the Congo, Mexico, and the acquisition of land in the Philippines and in Brazil for new projects.
ICTSI has set a $330-million capex for 2022.
“We remain mindful of the macro-economic environment and the potential impact this may have on our business but remain confident that we are well-positioned to navigate the se headwinds through our agility, diversified portfolio and strong balance sheet. Our highly disciplined and talented team continues to work resolutely for the benefit of our stakeholders—all the time guided by our purpose, to make ports around the world a driver for positive and sustainable growth,” Razon said.