International Container Terminal Services, Inc. (ICTSI) reported US$1.76 billion revenues from port operations for the nine months of 2023, seven percent up from the same period in 2022.
The company’s net income also increased four percent to US$484.54 million due to higher operating income and interest income, and lower COVID-19-related expenses.
This was partially tapered by nonrecurring impairment of goodwill attributed to Pakistan International Container Terminal (PICT) in the previous quarter and increases in depreciation and amortization, interest on loans, lease liabilities and concession rights payable.
Excluding the impairment of goodwill attributed to PICT, net income attributable to equity holders would have grown six percent to US$495.15 million.
Diluted earnings per share increased six percent to US$0.227 in 2023 from US$0.215 in 2022.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reaxged US$1.11 billion, seven percent higher than the US$1.04 billion generated the same period last year.
“These results were delivered against some very strong prior year comparatives,” says Enrique K. Razon, ICTSI Chairman and President.
Despite a challenging macro-economic and geo-political environment ahead, “We remain confident in the resilience of ICTSI’s diverse portfolio. Our strategy as an independent port operator supported by our cost and operational discipline means we are well-positioned for the rest of the year, as well as over the longer term.”
For the quarter ended September 30, 2023, revenue from port operations increased three percent from US$576.70 million to US$594.88 million; EBITDA was three percent higher at US$377.85 million from US$365.85 million; and net income attributable to equity holders marginally increased to US$170.74 million from US$170.66 million in the same period in 2022.
Diluted earnings per share for the third quarter of 2022 and 2023 were flat at US$0.080.
ICTSI handled consolidated volume of 9,451,912 twenty-foot equivalent units (TEUs) in the first nine months of 2023, seven percent more compared to the 8,856,303 TEUs handled in the same period in 2022.
The increase in consolidated volume was mainly due to the contribution of Manila North Harbour Port, Inc. (MNHPI) in Manila, Philippines that was consolidated starting September 2022, and new services at certain terminals; tapered mainly by the impact of the expiration of concession contract at PICT in Karachi, Pakistan; cessation of cargo handling operations at Makassar Terminal Services (MTS) in Makassar, Indonesia and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) in Davao, Philippines; and slowdown in trade activities at certain terminals.
Excluding the contribution of MNHPI, PICT, MTS and DIPSSCOR, consolidated volume would have marginally increased by one percent. For the quarter ended September 30, 2023, total consolidated throughput was two percent higher at 3,176,076 TEUs compared to 3,103,721 TEUs in 2022.
Gross revenues from port operations for the first nine months of 2023 increased by seven percent to US$1.76 billion compared to the US$1.64 billion reported in the same period in 2022 mainly due to the contribution of MNHPI and new businesses at IRB Logistica in Brazil; tariff adjustments, volume growth and higher revenues from ancillary services and general cargo business at certain terminals; and favorable translation impact mainly of Mexican Peso (MXN)- and Iraqi Dinar (IQD)- based revenues at Contecon Manzanillo S.A. (CMSA) and ICTSI Iraq, respectively, and Brazilian Reais (BRL)- based revenues at Tecon Suape S.A. (TSSA) and ICTSI Rio in Brazil; partially tapered by slowdown in trade activities at Victoria International Container Terminal (VICT) in Melbourne, Australia, and the expiration of the concession contract at PICT; and unfavorable translation impact mainly of Philippine Peso (PHP)-, Australian Dollars (AUD)- and Nigerian Naira (NGN)- based revenues at Philippine terminals, VICT in Australia and International Container Terminal Services Nigeria Ltd. (ICTSI Nigeria) in Port of Onne, Nigeria, respectively.
Excluding the contribution of MNHPI, and impact of new and discontinued businesses, consolidated gross revenues would have increased by five percent for the nine months ended September 30, 2023. For the third quarter of 2023, gross revenues increased three percent from US$576.70 million to US$594.88 million.
Capital expenditures, excluding capitalized borrowing costs, amounted to US$233.58 million for the first nine months of 2023.
These were mainly for ongoing expansions and acquisition of equipment at CMSA in Manzanillo, Mexico, Manila International Container Terminal (MICT) in the Philippines , VICT in Melbourne, Australia, and ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo.
The Group’s estimated capital expenditure for 2023 is approximately US$400 million.
The estimated capital expenditure will be utilized mainly for the ongoing expansion at the Company’s terminals in Mexico, Australia, Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at ICTSNL in Nigeria; quay expansion at ICTSI Rio in Brazil; development of a recently acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for capital maintenance requirements.
TECHNOLADY 