Billionaire Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) said the company had fully recovered from the pandemic-induced slump, delivering a 73-percent growth in profits to $196.7 million during the first semester of 2021.
During this period, revenues jumped 22 percent to $882.6 million while earnings before interest, taxes, depreciation, and amortization grew 28 percent to $532.5 million.
The gains were further backed by a recovery in volumes across its global terminals, with throughput up 14 percent to 5.5 million twenty-foot equivalent units.
“These results have surpassed 2019 prepandemic performance and were driven by favorable market conditions and the prudent actions we took at the onset of the pandemic,” Razon said in a statement.
“This is evidenced by the strong organic growth across our terminals underpinned by the strength and resilience of ICTSI and our differentiated strategy,” he added.
According to ICTSI, its financial results were bolstered by higher operating income and the significant reduction in losses from joint ventures, which offset higher interest and lease payments as well as expenses related to new terminals.
The company also saw global trade improve “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.”
Total operating expenses went up 11 percent to $248.2 million due to its business expansion, amplified by unfavorable currency movements in Mexico, Australia and the Philippines.
ICTSI spent $74.4 million in capital expenditures during the period.
These were allocated to the ongoing expansions at Manila International Container Terminal and ICTSI DR Congo in Democratic Republic of Congo. It also acquired port facilities and equipment at ICTSNL in Port of Onne in Nigeria.
The group’s capital spending budget for 2021 was estimated at $250 million.