International Container Terminal Services, Inc. (ICTSI) reported a slight uptick in audited consolidated attributable net income to US$101.8 million last year, one percent higher than the US$100.4 million earned in 2019.
In a disclosure to the Philippine Stock Exchange, the firm said the growth in earnings is mainly because of higher revenues, lower cash operating expenses resulting from continuous group-wide cost reduction and optimization measures.
Revenue from port operations reached US$1.51 billion in 2020, two percent higher compared to the US$1.481 billion reported the previous year.
The firm said this is due to the positive contribution of a new terminal in Rio de Janeiro, Brazil, and lower equity in net loss of joint ventures; tapered by an increase in interest on concession rights payable recognized at the new terminal in Cameroon and the full year impact of the new terminal in Brazil; additional impairment charges;and COVID-19 related expenses.
“ICTSI has delivered a positive performance in very challenging circumstances and it highlights not only the significant dedication and commitment of our colleagues who have performed strongly throughout the pandemic but also the agility and strength of our business,” said ICTSI Chairman and President Enrique K. Razon, Jr.
He added that, “We were swift to take action at the start of the pandemic to initiate cost reduction, reduce capital expenditures, and later seized opportunities to lengthen our debt maturities at lower rates.”
At the same time, ICTSI stepped up social community support and increased health and safety measures at all its ports to ensure that they all remain resilient in these extraordinary times.
“These actions have helped us to navigate a severe weakening of demand at some of our key terminals around the world. And as our volumes rebounded from their lows when lockdown restrictions began to lift in the second half, so did our margins reflect the benefits of these actions,” Razon said.
He noted that, “Those gains have continued into the new financial year as ICTSI emerges from these trying times leaner, stronger and optimistic of the future as governments around the world begin the herculean task of global mass vaccination.”
Equity in net loss of joint ventures was lower by 38 percent at US$12.3 million in 2020 from US$19.7 million in 2019 mainly due to the decrease in the Company’s share in net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA) and an increase in the Company’s share in net income in Manila North Harbor Port, Inc. (MNHPI).