International Container Terminal Services, Inc. (ICTSI) posted $1.64 billion revenues from its port operations for the first nine months of 2022, up 20 percent versus the same period last year and netted $465.1 million earnings, 47 percent more, due to higher operating income, net foreign exchange gain, equity share in net profit of joint ventures, and interest income.
ICTSI's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was $1.04 billion, up 25 percent.
Diluted earnings per share for the first nine months of 2022 was 63 percent higher at $0.215 compared to $0.132 in the same period in 2021.
ICTSI handled consolidated volume of 8,856,303 twenty-foot equivalent units (TEUs) in the first nine months of 2022, up seven percent.
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.
New shipping lines and services at certain terminals, as well as Manila North Harbour Port, Inc. (MNHPI) and International Container Terminal Services Nigeria Ltd. (ICTSNL), the company’s new terminal in Port of Onne, Nigeria, also contributed,
"We have delivered seven consecutive quarters of double-digit consolidated revenue growth which has helped offset inflationary pressure with our excellent performance being driven by volume growth, cost control and operating discipline," says Enrique K. Razon, Jr., ICTSI Chairman and President.
“We remain mindful of the macro-economic environment and the potential impact this may have on our business but remain confident that we are well-positioned to navigate these headwinds through our agility, diversified portfolio and strong balance sheet," he elaborated.
"Our highly disciplined and talented team continues to work resolutely for the benefit of our stakeholders – all the time guided by our purpose, to make ports around the world a driver for positive and sustainable growth.”
Excluding the consolidation of MNHPI, ICTSNL, and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) in Davao, Philippines, which was terminated last June 30, 2022, consolidated volume would have increased by six percent.
Gross revenues from port operations for the first nine months of 2022 was 20 percent higher at US$1.64 billion due to volume growth and market recovery from the impact of the pandemic.
Consolidated cash operating expenses was 14 percent higher at US$438.1 million due to the cost contribution of MNHPI, the new businesses, mainly MHCPSI, ICTSNL and IRB Logistica; the increase in equipment and facilities-related expenses, mainly fuel; government-mandated and contracted salary rate adjustments, including benefits; contracted services in relation to volume; and the unfavorable foreign exchange impact of the Brazilian Reais (BRL)-based expenses at ICTSI Rio and Tecon Suape S.A. (TSSA) in Brazil.
Consolidated EBITDA increased 25 percent to US$1.038.0 billion due to higher revenues, partially tapered by the increase in cash operating expenses.
Consequently, EBITDA margin increased to 63 percent in the first nine months of 2022 from 61 percent the previous year.
Capital expenditures, excluding capitalized borrowing costs, for the nine months ended September 30, 2022 amounted to US$281.3 million.
These were mainly for ongoing expansion projects at Manila International Container Terminal (MICT) in the Philippines, VICT in Melbourne, Australia, ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo, Contecon Manzanillo S.A. de C.V. (CMSA) in Manzanillo, Mexico, and the acquisition of land in the Philippines and in Brazil for new projects.
The group’s capital expenditure budget for 2022 is approximately US$330.0 million. This will be utilized mainly for the payment of the concession extension upfront fees at Madagascar International Container Terminal Services Ltd. (MICTSL); ongoing expansion at the Company’s terminals in Democratic Republic of Congo, Australia, Mexico and Philippines; equipment acquisitions and upgrades; and for various maintenance requirements.
ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to 3.5 million TEU/year range.
ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.