EconomyEditor's PickICTSI income up 43% to $171M as volume and trade grow

November 7, 2022

LISTED port operator International Container Terminal Services (ICTSI) saw its third-quarter net income attributable to equity holders increase 42.6% to $170.7 million from $119.7 million previously.

The increase was mainly due to volume growth, improved trade activities, new shipping lines and services at certain terminals, and the contribution of Manila North Harbour Port, Inc., the company said in its latest financial report.

Total revenues from port operations reached $576.7 million, up 19.6% from $482.4 million in the same period last year. Expenses for the period increased 11.1% to $310.7 million from $279.6 million previously.

ICTSI is involved in 34 terminal concessions and port development projects in 20 countries worldwide. It has nine terminal operations in the Philippines, including an inland container terminal, a barge terminal, and combined terminal operations in Subic.

The company’s consolidated earnings before interest, taxes, depreciation and amortization rose by 23.2% to $365.9 million from $296.9 million in 2021 “mainly due to higher revenues, partially tapered by the increase in cash operating expenses.”

The volume handled by ICTSI grew by 10.6% to 3.10 million twenty-foot equivalent units (TEUs) for the period from 2.81 million TEUs in the same period in 2021.

For the nine months ended Sept. 30, the company saw its net income attributable to equity holders increase by 47% to $465.1 million from $316.4 million previously.

Revenues from port operations climbed 20.1% to $1.64 billion from $1.37 billion last year.

ICTSI handled 8.86 million TEUs for the nine-month period, up 7.1% from 8.27 million TEUs handled in the same period last year.

“The group is exposed to a number of trends, events, and uncertainties which can affect its recurring revenues and profits,” ICTSI noted.

“These include levels of general economic activity and containerized trade volume in countries where it operates, as well as certain cost items, such as labor, fuel, and power,” the company said.

ICTSI operates in several jurisdictions other than the Philippines and collects revenues in various currencies.

“Continued appreciation of the US dollar relative to other major currencies, particularly the Philippine peso, Mexican peso, Australian dollars Brazilian reais, and the Euro, may adversely affect the group’s reported levels of revenues and profits,” ICTSI said.

ICTSI shares closed 6.86% higher at P190 apiece on Monday. — Arjay L. Balinbin

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