ICTSI posts $101 million income in 2020

MANILA, Philippines — International Container Terminal Services Inc. (ICTSI) ended 2020 with higher profit amid the challenges brought about by the pandemic to global trade.

ICTSI saw net income attributable to equity holders last year improved one percent to $101.8 million from $100.4 million in 2019 on the back of higher revenues, lower cash operating expenses, positive contribution of a new terminal in Brazil and lower equity in net loss of joint ventures.

Excluding non-recurring charges, the company’s recurring net income grew by nine percent to $282.1 million in 2020 from $259.1 million in 2019.

Revenue from port operations stood at $1.51 billion in 2020, two percent higher compared to the $1.481 billion in 2019.

The increase in revenue was attributed to the contribution of ICTSI Rio, higher revenues from ancillary services, tariff adjustments, new services at certain terminals and favorable translation impact mainly from Philippine peso-based revenues in its terminals in the country.

ICTSI handled consolidated volume of 10.193 million twenty-foot equivalent units (TEUs) last year, a slight improvement compared to the 10.178 million TEUs handled in 2019 due to the contribution of ICTSI Rio, new terminal operations in Brazil, improvement in trade activities in the second half of 2020, and new contracts with shipping lines and services at certain terminals.

“ICTSI has delivered a positive performance in very challenging circumstances and it highlights not only the significant dedication and commitment of our colleagues who have performed strongly throughout the pandemic but also the agility and strength of our business,” ICTSI chairman and president Enrique Razon said.

Razon said the company was able to take swift action at the start of the pandemic to initiate cost reduction, reduce capital expenditures and later seized opportunities to lengthen its debt maturities at lower rates.

“At the same time, we stepped up our social community support and increased health and safety measures at all our ports to ensure that we all remain resilient in these extraordinary times,” he said.

“These actions have helped us to navigate a severe weakening of demand at some of our key terminals around the world.  And as our volumes rebounded from their lows when lockdown restrictions began to lift in the second half, so did our margins reflect the benefits of these actions. Those gains have continued into the new financial year as ICTSI emerges from these trying times leaner, stronger and optimistic of the future as governments around the world begin the herculean task of global mass vaccination,” Razon said.

For this year, the company is setting aside a capital expenditure budget of around $250 million as it continues with the expansion of its projects in preparation for the recovery in global trade.

ICTSI intends to use the capex mainly for the completion of the expansion project at MICT in Manila, the ongoing yard expansion at IDRC in Congo, the new expansion project at VICT in Australia, equipment acquisitions and upgrades, as well as for various maintenance requirements.

ICTSI said its actual capex in 2020 exceeded the reduced capex budget of $160 million mainly due to the additional capex from the new terminal in Kribi, Cameroon and the reinstitution of postponed capex in a number of terminals which demonstrated strong volume growth in the second half of 2020.