International Container Terminal Services Inc. which achieved a record profit in 2021, remains optimistic this year amid the global challenges that may affect operations overseas.
“Although the war [between Russia and Ukraine] is mainly a European affair, we can all expect to feel the impact globally in terms of the global economy, stability and security,” said ICTSI chairman and president Enrique Razon Jr. during the virtual stockholders’ meeting.
Razon said while he is confident about the performance of ICTSI going forward, “we are mindful of the challenges we face with these global events.”
ICTSI budgeted $330 million in 2022 capital expenditures to pay the concession extension upfront fees for Madagascar International Container Terminal, expansion at Manila International Container Terminal, Matadi Gateway Terminal, Victoria International Container Terminal and Contecon Manzanillo.
Razon said the company had its “best year ever” in 2021, despite the global pandemic.
“We handled consolidated volume of 11,163,473 twenty-foot equivalent units in 2021, higher by 10 percent compared to the 10,193,384 throughput in 2020,” he said.
“The double-digit growth was primarily a result of improving trade as lockdowns and restrictions began to ease, and securing new shipping line contracts at certain terminals,” Razon said.
Razon said without the contribution of the new terminal Onne Multipurpose Termcinal in Nigeria, consolidated volume would have increased by 9 percent.
The company’s gross revenues from port operations went up by 24 percent in 2021 to $1.87 billion from $1.51 billion in 2020.
“Aside from improving demand for trade, contributing to revenue growth were a favorable impact of foreign exchange in certain terminals and the contribution of new terminals. Without the contribution of these new terminals, consolidated gross revenues would have increased by 21 percent,” he said.
ICTSI’s net income attributable to equity holders reached a record $428.57 million in 2021, up by 321 percent from $101.76 million in 2020.