- International Container Terminal Services Inc’s net income shot up 242% in 2021 on higher volume growth and improved trade as economies recover from the pandemic
- Net income attributable to equity holders jumped 321% to $428.57 million, mainly on higher operating income and non-recurring charges in 2020
- Consolidated volume in 2021 was 10% higher year-on-year to 11.16 million TEUs
- Chairman and president Enrique K. Razon Jr. says ICTSI is hopeful heading into 2022 but is aware of the potential impact of unfolding events in Ukraine
- The group’s capital expenditure budget for 2022 is $330 million
International Container Terminal Services Inc. (ICTSI) reported a 242% increase in net income to $477.54 million in 2021 from $139.64 million in 2020, driven by higher volume growth and improvement in trade as economies began recovering from the COVID-19 pandemic.
Net income attributable to equity holders jumped 321% to $428.57 million from $101.76 million in 2020 mainly on higher operating income and non-recurring charges in 2020, ICTSI said in a statement.
Revenue from port operations rose 24% to $1.87 billion from $1.51 billion last year, mainly due to volume growth and improved trade at most terminals; favorable container mix; tariff adjustments at certain terminals and new contracts with shipping lines and services.
Also boosting revenue were higher revenues from ancillary services; contribution of new terminals; and net favorable impact of foreign exchange at certain terminals; partially tapered by a decline in trade activities at certain terminals primarily due to the impact of the COVID-19 pandemic.
“Higher volume growth and improvement in trade activities as economies have started to recover have enabled throughput to increase by 10%, with EBITDA pushed higher from new terminal contributions,” ICTSI chairman and president Enrique K. Razon Jr. said.
Aside from the company’s financial results, Razon said “it was a great achievement in 2021 to have vaccinated over 90% of our workforce and supported host communities’ and partner governments’ coronavirus response efforts.”
“Whilst we are hopeful heading into 2022 that the worst of the COVID-19 crisis is behind us, we are mindful that these results were achieved during a global pandemic from which countries are recovering at different rates. However, we are aware of the potential social, political and economic impact arising (from) the disconcerting events unfolding in Ukraine and, as such, are monitoring the situation closely.”
He noted as well that ICTSI is “a resilient business and our performance over the last year reflects the actions we’ve taken to create long-term value for all our stakeholders.”
ICTSI handled consolidated volume of 11.163 million TEUs in 2021, 10% compared to the 10.193 million TEUs handled in 2020.
The growth in volumes was primarily due to volume growth and improvement in trade activities as economies recover from the impact of the COVID-19 pandemic and lockdown restrictions, and new contracts with shipping lines and services at certain terminals.
Excluding the contribution of the company’s new terminal operation, International Container Terminal Services Nigeria Ltd. (ICTSNL) in the Port of Onne, Rivers State, in Nigeria, consolidated volume would have increased by 9% in 2021.
Gross revenues from port operations grew 24% in 2021 to $1.87 billion, from $1.51 billion in 2020
Consolidated cash operating expenses in 2021 were 15% higher at $523.33 million compared with $453.63 million in 2020. The increase was mainly due to higher prices, greater consumption of fuel and power, and more contracted services driven by volume growth; additional costs associated with the new terminals; and unfavorable foreign exchange effects.
Capital expenditures in 2021 totalled $165 million. These were mainly for ongoing expansions at Manila International Container Terminal (MICT), acquisition of port facilities and equipment at ICTSNL in Nigeria, other expansionary works at the company’s terminals in Democratic Republic of Congo, Australia and Mexico; and infrastructure and equipment upgrades in Ecuador.
The group’s capital expenditure budget for 2022 is around $330 million. This will be used mainly to pay the concession extension upfront fees at Madagascar International Container Terminal Services Ltd. in Madagascar; ongoing expansion at International Container Terminal Services Inc.– DR Congo in Matadi, Democratic Republic of Congo; expansion projects at Victoria International Container Terminal in Melbourne, Australia, and Contecon Manzanillo S.A. de C.V. in Manzanillo, Mexico, which are both operating at very high utilization levels; Berth 8 expansion project at MICT in Manila; equipment acquisitions and upgrades; and for various maintenance requirements.
