International Container Terminal Services, Inc. (ICTSI) posted 1st quarter 2023 revenues of US$572.25 million, up eight percent from the same period last year and netted US$154.61 million earnings, nine percent more in the comparative duration, due to higher operating income and lower COVID-19 related expenses.
ICTSI 1Q 2023 earnings up 9% to $154.61 M
At a glance
International Container Terminal Services, Inc. (ICTSI) posted 1st quarter 2023 revenues of $572.25 million, up eight percent from the same period last year and netted US$154.61 million earnings, nine percent more in the comparative duration, due to higher operating income and lower COVID-19 related expenses.
"I am pleased to report on a strong first quarter of the year which saw ICTSI delivering an increase in throughput of nine percent to 3.10 million TEUs and EBITDA of US$354.20 million up five percent against the previous year," Enrique K. Razon, Jr., ICTSI Chairman and President stated.
“These results have been driven by our diversified portfolio and continued focus on margins, and they have been achieved against a challenging macroeconomic and geopolitical backdrop," he noted.
"Looking ahead, whilst we remain cautious of continued uncertainty, ICTSI is a strong and agile business differentiated by our strategy in origin and destination gateway terminals as well as an experienced team with a sharp focus on operational discipline, which positions us well for future growth,” Razon maintained.
ICTSI handled consolidated volume of 3,102,105 twenty-foot equivalent units (TEUs) in the first quarter of 2023, nine percent more than the 2,833,001 TEUs handled in the same period in 2022.
The increase in volume was primarily due to the contribution of Manila North Harbour Port, Inc. (MNHPI) in Manila, volume growth and new shipping lines and services at certain terminals; tapered by the cessation of cargo handling operations at PT Makassar Terminal Services (PT MTS) in Makassar, Indonesia and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) and decline in trade activities at certain terminals, among other things.
Capital expenditures, excluding capitalized borrowing costs, amounted to US$87.69 million for the first quarter of 2023.
These were mainly for ongoing expansions and acquisition of equipment at CMSA in Manzanillo, Mexico, VICT in Melbourne, Australia, Manila International Container Terminal (MICT) in the Philippines and ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo.
The Group’s estimated capital expenditure for 2023 is approximately US$400 million.
The estimated capital expenditure will be utilized mainly for the ongoing expansion at the Company’s terminals in Australia, Mexico, Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at ICTSNL in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a newly acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for maintenance requirements.
ICTSI is a leading global developer, manager and operator of origin and destination (O&D) ports with a long-term commitment to the markets it serves.
The company operates 33 terminals in 20 countries across six continents and continues to pursue container terminal opportunities around the world.