Razon-led International Container Terminal Services Inc. (ICTSI) registered a 73 percent growth in net income in the first nine-months of the year owing to improved domestic and international trade.
In a statement, Enrique K. Razon, Jr., ICTSI chairman and president said on Friday, Nov. 5, that the port operator’s profit amounted to $316.4 million from January to September 2021, up from $182.6 million in the same period last year.
“We have seen a considerable improvement in trade activities and outperformance in Asia, the Americas and EMEA [Europe, Middle East, Africa] as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions ease,” Razon said.
At end-September, ICTSI’s revenue from port operations reached $1.365 billion, an increase of 24 percent from the $1.104 billion a year ago.
In addition, the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) in the first three-quarters rose 29 percent to $829.4 million from $643.2 million in in the same period last year.
“This is extremely encouraging, and the company’s robust financial position provides a foundation to fund capital expenditures entirely through our strong cash flows and continue to grow ICTSI sustainably for the long term benefit of all our stakeholders,” Razon said.
In the third-quarter alone, net income net reached $119.7 million, up 73 percent year-on-year from $69.2 million.
Revenue from port operations went up 27 percent from $379.3 million to $482.4 million, while EBITDA was 31 percent higher at $296.9 million from $226.8 million.
But despite the favorable results, Razon noted that ICTSI has remained mindful that the pandemic continued to create challenges throughout the industry.
“We have good momentum to deliver further disciplined growth and we look to the future with confidence,” he said.
ICTSI handled consolidated volume of 8.26 million twenty-foot equivalent units (TEUs) in the first nine months of 2021, 11 percent more than the 7.42 million TEUs recorded in the same period last year.
“The increase in volume was primarily due to volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions, and new shipping lines and services at certain terminals,” ICTSI said.
For the quarter ended September, total consolidated throughput was seven percent higher at 2.8 million TEUs compared to 2.62 million TEUs in 2020.