Alternative Investment Report

ICTSI exceeds 2019 pre-pandemic income

LISTED port operator International Container Terminal Services, Inc. (ICTSI) reported on Thursday an 89% increase in its second-quarter net income, exceeding its 2019 pre-pandemic performance.

ICTSI’s net income for the second quarter was $118.2 million, up from $62 million in 2020 and $65 million in 2019.

The company’s attributable net income for the quarter climbed 98% to $106.6 million from $53.8 previously. Total revenues rose 28% to $447 million.

“These results have surpassed 2019 pre-pandemic performance and were driven by favorable market conditions and the prudent actions we took at the onset of the pandemic,” Enrique K. Razon, Jr., ICTSI chairman and president, said in an e-mailed 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.

As for the first half of the year, ICTSI net income rose 68% to $220.6 million, while its attributable net income climbed 73% to $196.7 million.

The company’s total revenues for the first half improved 22% to $882.6 million.

ICTSI attributed its favorable second-half net income to “higher operating income and significant reduction in equity in net loss of joint ventures.”

“The increase (in the second-half attributable net income) was partially tapered by increase in interest expense on loans, concession rights payable, lease liability and higher depreciation and amortization expenses associated with the new terminals,” it said.

The company said it handled consolidated volume of 5.5 million twenty-foot equivalent units (TEUs) in the first six months of 2021, 14% higher than the 4.8 million TEUs handled in the same period a year ago.

“The increase in volume was primarily due to improvement in trade activities as economies continue to recover from the impact of the… pandemic and lockdown restrictions, and new shipping lines and services at certain terminals,” it added.

The company’s capital expenditures, excluding capitalized borrowing costs, for the first half of the year amounted to $74.4 million.

ICTSI shares closed 1.26% higher at P177 apiece on Thursday. — Arjay L. Balinbin

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