International Container Terminal Services, Inc. (ICTSI) reported just a slight dip in unaudited consolidated attributable net income to US$182.6 million in the first nine months of 2020 from the US$184.9 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm said the small difference is due mainly to higher interest on concession rights payable and COVID-19 related expenses.

These costs were partially offset by higher operating income, improvement in net operating results at its greenfield terminal in Melbourne, Australia and lower equity in net loss of joint ventures.  

Revenue from port operations was flat at US$1.1 billion as Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) improved 3 percent to US$643.2 million.

Equity in net loss of joint ventures decreased by 28 percent to US$12.7 million in the first nine months of 2020 from US$17.6 million for the same period in 2019 mainly due to the decrease in the Company’s share in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte Ltd. (PSA) in Buenaventura, Colombia.

For the third quarter alone, attributable net income jumped 23 percent to US$69.2 million from US$56.4 million in the same period last year as revenue from port operations increased 7 percent from US$355.6 million to US$379.3 million.

“I am pleased to report that our performance for the third quarter benefited from the cost preservation measures we took to mitigate the adverse effects of the pandemic,” ICTSI Chairman and President Enrique K. Razon, Jr. said.

He added that, “Our actions, together with improvements in global trade, a diversified portfolio, and high levels of customer service have helped to deliver an improved performance compared to the same period in the previous year.”

However, Razon noted that, “The pandemic continues to present uncertainties and we are very mindful of how unpredictable the environment is, as certain parts of the world move to a secondary lockdown, and we remain cautious.”

He pointed out though that, “ICTSI is well positioned to benefit further should global trade continue to show signs of recovery, underpinned by our stringent cost management, ability to swiftly respond to changing situations and our diverse geographical presence.”

ICTSI handled consolidated volume of 7,426,307 twenty-foot equivalent units (TEUs) in the first nine months of 2020, two percent less than the 7,590,090 TEUs handled in the same period in 2019. 

The decrease in volume was primarily due to the decline in trade activities which resulted from the impact of the COVID-19 pandemic on global trade and lockdown restrictions.

Excluding the contribution of ICTSI Rio, the company’s new terminal in Rio de Janeiro, Brazil, consolidated organic volume would have decreased four percent in the first nine months of 2020. For the quarter ended September 30, 2020, total consolidated throughput was three percent higher at 2,626,542 TEUs compared to 2,548,175 TEUs in 2019.