MANILA, Philippines — Logistics giant International Container Terminal Services Inc. (ICTSI) improved its profitability in 2022, taking advantage of the lifting of border limits worldwide to boost trade facilitation.
ICTSI yesterday reported that its net income jumped by 44 percent to $618.47 million last year from $428.57 million in 2021, as the growth of its revenue outpaced the rise in its expenditures.
Broken down, revenues increased by 20 percent to $2.24 billion, while expenses went up by 13 percent to $1.27 billion.
Further, ICTSI saw its cargo handling grow by nine percent to 12.22 million TEUs from 11.16 million TEUs, attributed to consolidation of Manila North Harbor Port Inc. The firm also benefited from the recovery of trade with pandemic restrictions loosened for the most part of 2022.
For last year, ICTSI reported that its capital expenditures amounted to $386.35 million. The bulk of the spending went to projects expanding the Manila International Container Terminal, as well as facilities in Australia, Democratic Republic of Congo and Mexico.
Likewise, ICTSI spent for the purchase of land at the Port of Manila and for the extension of its concession at the Madagascar International Container Terminal Services Ltd.
For this year, ICTSI has allotted a budget of $400 million for its capital expenditures, mostly for the expansion of its operations both here and abroad to prepare its facilities for the projected spike in cargo footprint.
In particular, the Razon-led firm plans to expand the yard capacity of International Container Terminal Services Nigeria Inc. and bolster the quay operations of ICTSI Rio Brazil. It has its eyes set as well on developing the new terminal it acquired in Indonesia in 2022.
ICTSI chairman and president Enrique Razon Jr. said the firm managed to enhance its financials in 2022 through volume growth, coupled with spending controls. He vowed that ICTSI would keep its fundamentals intact as the economy faces uncertainties in the pandemic aftermath.
“In a year marked by geopolitical unrest and inflationary pressures, ICTSI took clear and robust actions to focus on cost initiatives and implemented a selective and disciplined capex program, which has pleasingly created value for our stakeholders,” Razon said.
“While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth,” he added.