International Container Terminal Services, Inc. (ICTSI) on Monday bared net income rising 44 percent in 2022 due to higher operating income.
The Razon-led port operator said net profit amounted to $618.46 million last year, up from only $428.57 million in 2021.
Its revenue from port operations went up 20 percent to $2.24 billion last year from $1.87 billion in 2021.
“In a year marked by geopolitical unrest and inflationary pressures, we took clear and robust actions to focus on our cost initiatives and implemented a selective and disciplined capex program which has pleasingly created value for our stakeholders,” Enrique K. Razon Jr., ICTSI president and chairman, said.
“While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth. I would like to thank colleagues across the Group who have worked hard to deliver an excellent year of results during a choppy year and the strength of our financial and operational results is testament to their hard work and commitment,” he added.
ICTSI handled consolidated volume of 12,216,190 twenty-foot equivalent units (TEUs) in 2022, nine percent more than the 11,163,473 TEUs handled in the same period in 2021.
The increase in volume was primarily due to consolidation of Manila North Harbor Port, Inc. (MNHPI) starting September 2022; volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new shipping lines and services at certain terminals.
Excluding the volume contribution of MNHPI, International Container Terminal Services Nigeria Ltd. (ICTSNL) – the company’s new terminal in Port of Onne, Nigeria) and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) in Davao which ceased operations on June 30, 2022, consolidated volume would have increased by five percent.
The company’s consolidated cash operating expenses in 2022 was 17 percent higher at $612.12 million compared to $523.33 million in 2021.
Capital expenditures, excluding capitalized borrowing costs, in 2022 amounted to $386.35 million. These were mainly for ongoing expansions at VICT in Melbourne, Australia, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo and Contecon Manzanillo S.A. de C.V. (CMSA) in Manzanillo, Mexico; the acquisition of land at the Port of Manila in the Philippines; and concession-extension related expenditures at MICTSL in Madaga.
The Group’s estimated capital expenditure this year is $400 million, mainly for the ongoing expansion at company terminals in Australia, Mexico, Philippines and Democratic Republic of Congo, among others.
