ICTSI posts 73 per cent jump in net income to US$196.7 million in H1 2021

International Container Terminal Services (ICTSI) posted a net income of US$196.7 million for the first half of 2021, or an increase of 73 per cent from the same period in 2020.

The company also reported that its volume, revenues, and EBITDA across all three geographic segments exceeded 2019 pre-Covid-19 pandemic performance levels, with increases of 14, 22, and 28 per cent, respectively.

ICTSI Chairman and President Enrique K. Razon Jr. said the results were driven by favourable market conditions and “prudent actions” that the company took at the onset of the pandemic.

Mr Razon attributed the increases to a number of factors including 1) higher operating income, 2) significant reduction in equity in net loss of joint ventures, partially tapered by increase in interest expense on loans, concession rights payable, and lease liability, and 3) higher depreciation and amortisation expenses associated with its new global terminals.

For the quarter ended June 30, 2021, revenue from port operations increased 28 per cent from US$348.5 million to US$447 million, EBITDA was 31 per cent higher at US$267.7 million from US$204.2 million, and net income attributable to equity holders was at US$106.6 million, 98 per cent more than the US$53.8 million in the same period in 2020. Diluted earnings per share for the second quarter of 2021 was at US$0.045 compared to US$0.020 in the same period in 2020.

ICTSI handled a consolidated volume of 5,459,523 TEUs in the first six months of 2021, 14 per cent more than the 4,799,765 TEUs handled in the same period in 2020. The increase in volume was primarily due to 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.

For the quarter ended June 30, 2021, total consolidated throughput was 20 per cent higher at 2,751,731 TEUs compared to 2,290,779 TEUs in 2020.

Gross revenues from port operations for the first half of 2021 increased by 22 per cent to US$882.6 million from the US$724.3 million reported in the same period in 2020 mainly due to volume growth, favourable container mix, tariff adjustments at certain terminals, new contracts with shipping lines and services, higher revenues from ancillary services, and the contribution of new terminals ICTSI Nigeria (ICTSNL) in Nigeria, Manila Harbor Center Port Services (MHCPSI) in the Philippines, and Kribi Multipurpose Terminal (KMT) in Cameroon.

Excluding the contribution of these new terminals, consolidated organic gross revenues would have increased by 21 per cent in the first half of 2021. For the second quarter of 2021, gross revenues increased 28 per cent from US$348.5 million to US$447 million.

Consolidated EBITDA increased 28 per cent to US$532.5 million for the first six months of 2021 from US$416.4 million in 2020 mainly due to higher revenues, partially tapered by the increase in cash operating expenses. EBITDA margin, on the other hand, increased to 60 per cent in the first half of 2021 from 57 per cent the previous year.