**media**
International Container Terminal Services, Inc. (ICTSI) hauled in US$1.87 billion revenues from port operations in 2021, 24 percent higher versus the preceding year, and netted US$428.57 Million earnings, up 321 percent.
"Higher volume growth and improvement in trade activities as economies have started to recover have enabled throughput to increase by 10 percent, with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) pushed higher from new terminal contributions," according to Enrique K. Razon, Jr., ICTSI Chairman and President.
“Whilst we are hopeful heading into 2022 that the worst of the COVID-19 crisis is behind us, we are mindful that these results were achieved during a global pandemic which countries are recovering at different rates from," he maintained.
"However, we are aware of the potential social, political and economic impact arising as a result of the disconcerting events unfolding in Ukraine and as such are monitoring the situation closely.”
Furthermore, “We are a resilient business and our performance over the last year reflects the actions we’ve taken to create long-term value for all our stakeholders."
ICTSI's EBITDA rose 30 percent to US$1.14 billion last year due to higher revenues and the contribution of new terminals, ICTSI Nigeria Ltd. (ICTSNL) and Manila Harbor Center Port Services, Inc. (MHCPSI).
Excluding the contribution of new terminals, EBITDA would have increased by 27 percent.
On the other hand, the 321 percent increase on ICTSI's US$428.57 million net income was due to higher operating income and non-recurring charges in 2020, partially off-set by increase in depreciation and amortization resulting from the new terminals; higher interest on loans, concession rights payable, and lease liabilities; additional impairment charges on other non-financial assets; and charges associated with the prepayment of loan facilities at Victoria International Container Terminal (VICT).
In addition, equity in net loss of joint ventures was practically reduced to zero in 2021 from a US$12.27 million loss in 2020 mainly due to the ICTSI’s share in higher net income in Manila North Harbour Port, Inc. (MNHPI) and lower net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA) in 2021.
ICTSI handled consolidated volume of 11,163,473 twenty-foot equivalent units (TEUs) in 2021, higher by 10 percent as volume and trade grew in the wake of economies recovering from the pandemic and lockdown restrictions.
Excluding the contribution of the company’s new terminal operations, ICTSNL in Nigeria, consolidated volume would have increased by nine percent in 2021.
Gross revenues from port operations grew by 24 percent in 2021 to US$1.87 billion as volume grew and trade activities improved at most terminals.
The port operator also posted higher revenues from ancillary services and hauled in contributions from new terminals - ICTSNL in Nigeria, Manila Harbor Center Port Services, Inc. (MHCPSI), Kribi Multipurpose Terminal (KMT) in Cameroon, and IRB Logistica in Rio de Janeiro, Brazil.
On the other hand, consolidated cash operating expenses increased 15 percent to $523.33 million due to increase in prices and consumption of fuel and power and higher contracted services driven by volume growth.
Also, there was additional cost associated with the new terminals in ICTSNL, MHCPSI, KMT and IRB Logistica; and unfavorable foreign exchange effect of Australian Dollars (AUD)-, Mexican Peso (MXN)- and Chinese Renminbi (RMB)- based expenses in Melbourne, Manzanillo and Yantai.
But this was offset by continuous cost optimization measure and favorable foreign exchange effect of Iraqi Dinar (IQD)-based expenses at ICTSI Iraq and Brazilian Reais (BRL)-based expenses at ICTSI Rio and Tecon Suape S.A. (TSSA).
Consolidated financing charges and other expenses decreased 47 percent to $170.54 million due to lower impairment charges on non-financial assets and non-recurring charges associated with the prepayment of loan facilities at VICT totaling $16.74 million, compared to the impairment charges on concession rights of TECPLATA and other nonfinancial assets in 2020 of $180.31 million.
This was partially offset by higher interest and financing charges on borrowings due to the issuance of $400 million and $300 million senior notes in June 2020 and November 2021 plus the consolidation of the outstanding loan of the group’s new terminal in the Philippines, MHCPSI.
Capital expenditures, excluding capitalized borrowing costs, in 2021 amounted to$165.00 million.
These were mainly for ongoing expansions at Manila International Container Terminal (MICT), acquisition of port facilities and equipment at ICTSNL in Nigeria, other expansionary works at the Company’s terminals in Democratic Republic of Congo, Australia and Mexico as well as infrastructure and equipment upgrades in Ecuador.
ICTSI's earmarked $330 million for its capital expenditure in 2022 to pay concession extension upfront fees at Madagascar International Container Terminal Services Ltd. (MICTSL) as well as fund the ongoing expansion at IDRC in Matadi, Democratic Republic of Congo, that of VICT in Melbourne, Australia and Contecon Manzanillo S.A. de C.V. (CMSA) in Manzanillo, Mexico which are both operating at very high utilization levels.
The Berth 8 expansion project at MICT in Manila plus equipment acquisition, maintenance and upgrades are included in the capex.