ICTSI net profit up 321% to $428.57M in 2021
International Container Terminal Services Inc. (ICTSI) recorded a 321% increase in net profit to $428.57 million in 2021, which showed its resilience and financial strength.
ICTSI Chairman and President Enrique Razon Jr. said the positive business results have been achieved during the pandemic as countries recover at different paces. For this year, they are closely following developments abroad, in particular the Russian-Ukrainian crisis.
“We are a resilient company and our performance over the past year reflects the steps we have taken to create long-term value for all our stakeholders. We are aware of the potential social, political and economic impact resulting from the baffling events unfolding in Ukraine and as such are monitoring the situation closely,” he said.
Net profit attributable to shareholders of $428.57 million was 321% higher than the $101.76 million earned in 2020, mainly due to higher operating profit and one-time charges in 2020.
Revenue increased 24% to $1.87 billion from $1.51 billion in 2020. Earnings before interest, taxes, depreciation and amortization (Ebitda) increased 30% to $1.14 billion of dollars. Throughput increased by 10% to 11.16 million 20-foot equivalent units (TEUs) in 2021, up 10% from the 10.193 million TEUs handled in 2020, primarily due to volume growth and improving business operations as economies recover from the impact of the covid19 pandemic.
“Higher volume growth and improved business operations as economies began to recover drove throughput up 10% as Ebitda increased on new terminal contributions,” it said. -he declares.
The volume growth was also attributed to a favorable container mix, tariff adjustments in some terminals, new contracts with shipping lines and services, and higher revenues from ancillary services. The contribution of new terminals such as ICTSNL in Rivers State, Nigeria, Manila Harbor Center Port Services, Inc. (MHCPSI) in Manila, Kribi Multipurpose Terminal (KMT) in Kribi, Cameroon, and IRB Logistica in Rio de Janeiro, also in Brazil, as the favorable net impact of exchange rates on certain terminals also contributed to the increase in throughput. Excluding the contribution of new terminals in Nigeria, the Philippines, Cameroon and Brazil, consolidated gross revenues would have increased by 21% in 2021.
Capital expenditures, excluding borrowing costs capitalized in 2021, amounted to $165.00 million, primarily for Manila International Container Terminal (MICT) expansions, acquisition of facilities and equipment ports at ICTSNL in Nigeria, further terminal expansion works in the Democratic Republic of Congo, Australia and Mexico, and infrastructure and equipment upgrades in Ecuador.
The capital expenditure budget for 2022 is approximately $330 million, which will primarily be used to pay initial concession extension fees to Madagascar International Container Terminal Services Ltd. (MICTSL) in Madagascar; continued expansion at IDRC in Matadi, Democratic Republic of Congo; expansion projects for VICT in Melbourne, Australia, and Contecon Manzanillo SA de CV (CMSA) in Manzanillo, Mexico, both of which are operating at very high utilization levels. ICTSI is constructing Pier 8 at MICT in Manila. It undergoes equipment acquisitions and upgrades and various maintenance requirements.
Razon said that apart from port developments, it was a great achievement to have vaccinated over 90% of their workforce and supported host communities and partner governments in coronavirus response efforts.