ICTSI profits fall 18%, cuts capex by 59%

Published May 7, 2020, 12:00 AM

by manilabulletin_admin


International Container Terminal Services, Inc. (ICTSI) reported an 18 percent drop in unaudited consolidated attributable net income to $59.6 million in the first quarter of the 2020 from the $72.4 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, ICTSI said this is due to the lower operating income, increase in interest on concession rights payable and COVID-19- related expenses; partially tapered by decrease in equity in net loss of joint ventures and an associate.

“The effect of the virus was felt in the latter part of the first quarter and our volumes compared to the previous year were largely flat,” said ICTSI Chairman Enrique K. Razon Jr.

He noted that, “Regions are at different stages of the viral outbreak which is reflected in our portfolio performance; Asia delivered lower volumes compared to previous year while EMEA and AMERICA segments both still registered positive volume growth for the quarter. However, the latter two regions showed signs of weakness in March.”

“We have taken significant measures which include reducing our cost base and capital expenditure while seeking ways to increase our market share in certain markets. We continue to monitor the situation carefully so we can adapt our responses. ICTSI is an agile business and able to act swiftly to ensure the business remains robust during these un¬certain times,” Razon added.

Amid the ongoing impact of the COVID-19 pandemic on global trade, ICTSI has reduced its capital expenditure plan for the year to approximately $100 million from the original $270-million budget.

The lower capex budget will be used mainly to complete the ongoing expansion projects. The original budget was to be used mainly for the ongoing expansion projects at Manila International Container Terminal (MICT) and CMSA in Mexico; yard expansion at IDRC in Democratic Republic of Congo; equipment acquisitions and upgrades; and for maintenance requirements.

ICTSI reported that its revenue from port operations dipped 2 percent to US$375.8 million from the $383.8 million reported for the same period last year.

Equity in net loss of joint ventures and an associate decreased by 10 percent to US$5.5 million in the first quarter of 2020 from US$6.1 million for the same period in 2019.