International Container Terminal Services Inc. said Monday net income climbed by 47 percent in the first nine months from a year ago on higher volume growth and the market recovery from the impact of the pandemic.
The port operator said net profit reached $465.1 million from January to September, up from $316.4 million in the same period last year.
ICTSI said in the third quarter, net income went up by 43 percent to $170.7 million from last year’s $119.7 million.
Gross revenues from port operations in the nine-month period increased 20 percent to $1.64 billion from $1.37 billion reported in the same period in 2021.
Revenues in the third quarter also went up by 20 percent from $482.4 million to $576.7 million.
“We have delivered seven consecutive quarters of double-digit consolidated revenue growth which has helped offset inflationary pressure with our excellent performance being driven by volume growth, cost control and operating discipline,” ICTSI chairman and president Enrique Razon Jr. said.
“We remain mindful of the macro-economic environment and the potential impact this may have on our business but remain confident that we are well-positioned to navigate these headwinds through our agility, diversified portfolio and strong balance sheet,” he said.
“Our highly disciplined and talented team continues to work resolutely for the benefit of our stakeholders – all the time guided by our purpose, to make ports around the world a driver for positive and sustainable growth,” Razon said.
ICTSI handled consolidated volume of 8,856,303 twenty-foot equivalent units in the first nine months, or 7 percent more than 8,266,621 TEUs it handled in the same period in 2021.
“The increase in volume was primarily due to volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; new shipping lines and services at certain terminals,” the company said.
The company budgeted $281.3 million in capital expenditures, excluding capitalized borrowing costs, in the nine-month period.
These were mainly for expansion projects at Manila International Container Terminal in the Philippines; VICT in Melbourne, Australia; ICTSI DR Congo S.A. in Matadi, Democratic Republic of Congo; Contecon Manzanillo S.A. de C.V. in Manzanillo, Mexico; and the acquisition of land in the Philippines and Brazil for new projects.
The group said capital expenditure budget for 2022 is about $330 million which would be used mainly for the payment of the concession extension upfront fees at Madagascar International Container Terminal Services Ltd.; expansion at the company’s terminals in Democratic Republic of Congo, Australia, Mexico and the Philippines; equipment acquisitions and upgrades; and for various maintenance requirements.