ICTSI looks past pandemic with ’21 earnings jump

STRONG PERFORMANCE A vessel uploads cargo at the MICT in Manila. Enrique Razon Jr.’s
global ports empire reported a profits surge of over 300 percent last year as economies reopened
around the world. —PHOTO COURTESY OF ICTSI

Billionaire Enrique Razon Jr.’s International Container Terminal Services Inc. (ICTSI) is ready to move on from the COVID-19 pandemic with the recovery of earnings and volume last year even as the business outlook remains clouded by the Russia-Ukraine conflict.

ICTSI said profits in 2021 surged 321 percent to $428.57 million in 2021 due to higher operating income and the absence of one-time charges. Excluding these charges, the company’s recurring net income ended the year higher by 57 percent to $442.83 million.

“Whilst we are hopeful heading into 2022 that the worst of the COVID-19 crisis is behind us, we are mindful that these results were achieved during a global pandemic which countries are recovering at different rates from,” Razon said in a statement.

“However, we are aware of the potential social, political and economic impact arising as a result of the disconcerting events unfolding in Ukraine and, as such, are monitoring the situation closely,” he added.

ICTSI saw port revenues jump 24 percent to $1.87 billion last year on higher volumes, tariff adjustments and the contribution of new terminals and expansion in Nigeria, the Philippines, Cameroon and Brazil.

The company’s volume, a measured by twenty-foot equivalent units (TEUs), rose 10 percent to 11.16 million TEUs. Meanwhile, cash operating expenses in 2021 rose 15 to $523.33 million.

ICTSI is budgeting $330 million for capital spending in 2022 to pay concession fees and expand its terminals.

This will include the payment of “concession extension upfront fees” at Madagascar International Container Terminal Services Ltd., the ongoing expansion of ports in Congo, Australia and Mexico, the Berth 8 expansion project at the Manila International Container Terminal (MICT), equipment acquisitions and upgrades and for maintenance requirements.

The company is increasing spending this year from $165 million in 2021.

Spending last year was used to expand MICT, the acquisition of port facilities and equipment at International Container Terminal Services Nigeria Ltd., and “other expansionary works” in Congo, Australia and Mexico and infrastructure and equipment upgrades in Ecuador.