Global port operator International Container Terminal Services Inc. (ICTSI)—the flagship firm of billionaire Enrique Razon Jr.—reported sharply higher earnings for the first nine months of the year, driven by stronger operating income and lower losses in its joint ventures.
In a statement, ICTSI said its net income attributable to equity holders for the January to September 2021 period stood at $316.4 million, 73 percent more than the $182.6 million earned in the nine months of 2020.
Its net income was affected, however, by the increase in interest expense on loans, concession rights payable, and lease liability; and higher depreciation and amortization expenses associated with the new terminals, the company said.
“We have seen a considerable improvement in trade activities and outperformance in Asia, the Americas and EMEA (Europe, Middle East and Africa) as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions ease,” said Razon who is ICTSI’s chair and president.
‘Extremely encouraging’
“This has led to strong performance this quarter for ICTSI,” he added. “Net income has grown 73 percent, driven by growth in revenue and increased volume from port operations across all three regions.”
In addition, its unaudited consolidated financial results for the nine months of 2021 showed that revenue from port operations of hit $1.365 billion, an increase of 24 percent from the $1.104 billion reported for the nine months of 2020.
Earnings before interest, taxes, depreciation and amortization (Ebitda) for the period stood at $829.4 million, 29 percent higher than the $643.2 million generated the same period last year, while diluted earnings per share for the nine months of 2021 was 91 percent higher at $0.132 compared to $0.069 in the same period in 2020.
Razon described the results as “extremely encouraging,” adding that ICTSI’s financial position provides a foundation to fund capital expenditures entirely through strong cash flows and continue to grow the company “sustainably for the long term benefit of all our stakeholders.”
Confidence
“We remain mindful that the pandemic continues to create challenges throughout our industry,” Razon said. “We have good momentum to deliver further disciplined growth and we look to the future with confidence.”
ICTSI handled consolidated volume of 8,266,621 twenty-foot equivalent units (TEUs) in the first nine months of 2021, 11 percent more than the 7,426,307 TEUs handled in the same period in 2020.
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, and new shipping lines and services at certain terminals. For the quarter ended Sept. 30, 2021, total consolidated throughput was seven percent higher at 2,807,098 TEUs compared to 2,626,542 TEUs in 2020. INQ