ICTSI generates net income of $142.3 million in the first quarter
Photo of the berth at ICTSI’s flagship international container terminal in Manila CONTRIBUTED PHOTO
INTERNATIONAL Container Terminal Services Inc. (ICTSI) reported net profit of $142.3 million in the first quarter (Q1), 58% higher than the $90.1 million in the first quarter of last year, boosted by the performance of the new terminals and the increase in operating profit.
ICTSI Chairman and President, Enrique Razon Jr., said, “The year has started very well with continued momentum from 2021 resulting in strong growth across the business. terminals, we saw a 5% increase in throughput. »
Revenue rose 21% to $528.3 million, up 21% from the $435.6 million reported last year, while earnings before interest, taxes, depreciation and amortization (Ebitda) grew 28% to $337.9 million on strong performance from new terminals and joint ventures.
“These results demonstrate the strength of our business and its ability to generate growth through our diverse portfolio and our longstanding positive relationships with local communities around the world. We are aware of the challenges ahead as the tragic conflict in Ukraine impacts the global economy and continues to carefully monitor the situation,” he added.
ICTSI handled a consolidated volume of 2.833 million twenty-foot equivalent units (TEUs) in the first quarter of 2022, up 5%, driven by improved commercial operations as economies continue to recover from the impact of the pandemic. New contracts with shipping companies and new services in some terminals, a new terminal, International Container Terminal Services Nigeria Ltd. (ICTSNL) in the port of Onne, Rivers State, Nigeria, also contributed to the volume growth.
Port operations gross revenue increased 21% to $528.3 million, primarily due to volume growth at most terminals, a favorable container mix, tariff adjustments at some terminals, new contracts with shipping lines and services and increased revenues from ancillary services. The new ICTSNL terminals in Nigeria, Manila Harbor Center Port Services Inc. (MHCPSI) in the Philippines and IRB Logistica in Brazil also contributed to the revenue growth.
Capital expenditures, excluding capitalized borrowing costs, were $52.4 million for the first quarter of 2022, primarily for ongoing expansion projects at Manila International Container Terminal (MICT) , VICT in Melbourne, Australia, Contecon Manzanillo SA de CV (CMSA) in Manzanillo, Mexico and ICTSI DR Congo SA (IDRC) in Matadi, Democratic Republic of Congo.
The ICTSI Group’s capital expenditure budget for 2022 is approximately $330.0 million, to be used primarily for the payment of initial concession extension fees to Madagascar International Container Terminal Services Ltd. (MICTSL); continued expansion of terminals in the Democratic Republic of Congo, Australia, Mexico and the Philippines. ICTSI will also allocate a budget for equipment acquisitions and upgrades as well as for various maintenance needs.
“ICTSI is a resilient company and I am confident that together with our talented team, we will continue to bring value to all of our stakeholders,” said Razon.