ICTSI 1H2022 net revenue up 50% to US$294.5m; balanced financial and operational results across its global portfolio improved EPS by 68% to $0.135

0

Enrique K. Razon, Jr., Chairman and President of ICTSI, said, “We delivered another period of strong operational and financial results across our global portfolio with throughput growth of 5%. Revenue increased 20% to US$1.06 billion and EBITDA increased 26% to US$672.1 million driven by volume growth, strong contribution from new terminals and improved business operations as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic.

“Over the years, we have demonstrated our resilience and the benefits of having a clear strategic market position and a disciplined, goal-oriented culture. Our talented team, expertise and experience remain essential as we continue to navigate geopolitical and economic uncertainties. Despite these external challenges, we remain confident in our ability to drive growth in our global business and generate long-term sustainable value for the benefit of all our stakeholders. »

International Container Terminal Services, Inc. (ICTSI) today announced unaudited consolidated financial results for the first half of 2022, showing revenue from its global port operations of $1.06 billion, an increase of 20% over compared to the $882.6 million announced for the first six months. from 2021; Earnings before interest, taxes, depreciation and amortization (EBITDA) of $672.1 million, up 26% from the $532.5 million generated in the same period last year; and net income attributable to shareholders of $294.5 million, 50% higher than the $196.7 million achieved in the first half of 2021, mainly due to higher operating income; higher net foreign exchange gain, increase in the share of equity in the net profit of joint ventures; and strong contribution from new terminals; partially reduced by the increase in depreciation and interest on loans, concession rights to be paid and rental obligations. Share of equity in net income of joint ventures increased 308% in the first half of 2022 to $3.0 million from $742,000 in the same period of 2021, due to the company’s share in the increase in the net profit of Manila North Harbor Port, Inc. (MNHPI) and decrease in the net loss of Sociedad Puerto Industrial Aguadulce SA (SPIA). Diluted earnings per share for the first half of 2022 jumped 68% to $0.135 from $0.081 in the same period in 2021 due to higher net income and lower cumulative distributions to equity holders. perpetual capital securities.

For the quarter ended June 30, 2022, worldwide port operations revenue increased 20% from US$447.0 million to US$534.6 million; EBITDA increased 25% to $334.3 million from $267.7 million; and net income attributable to shareholders was US$152.2 million, 43% higher than US$106.6 million for the same period in 2021. Diluted earnings per share for the second quarter of 2022 was 57% higher at US$0.070 compared to US$0.045 in the same period in 2021.

ICTSI handled a consolidated volume of 5,752,582 twenty-foot equivalent units (TEUs) in the first six months of 2022, which is 5% more than the 5,459,523 TEUs handled during the same period in 2021, mainly due to volume growth and general improvement of business activities as economies. continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new shipping lines and services at some terminals. For the quarter ended June 30, 2022, consolidated total throughput increased 6% to 2,919,581 TEUs from 2,751,731 TEUs in 2021.

Gross revenue from the Company’s global port operations for the first half of 2022 increased 20% to US$1,062.9 million from the US$882.6 million reported during the same period in 2021, mainly due to volume growth in most terminals; favorable container mix; tariff adjustments on certain terminals; new contracts with shipping companies and services; higher revenues from ancillary services and the contribution of the new Manila Harbor Center Port Services, Inc. (MHCPSI) terminals in the Philippines, International Container Terminal Services Nigeria Ltd. (ICTSNL) in Nigeria and IRB Logistica in Brazil; partially mitigated by the decline in commercial activities and the unfavorable impact of exchange rates on certain terminals. Excluding the contribution from new terminals in the Philippines, Nigeria and Brazil, consolidated gross revenue from its global port operations would have increased by 17% in the first half of 2022. For the second quarter of 2022, gross revenue increased by 20%, from $447.0 million to $534.6 million.

Consolidated cash operating expenses in the first six months of 2022 increased 14% to US$283.9 million from US$248.2 million in 2021. The increase in operating expenses in cash is mainly due to the additional costs associated with the new terminals in the Philippines, Nigeria and Brazil. ; higher equipment and facilities expenses resulting from higher prices and consumption of fuel and electricity driven by volume growth; increased contractual services and overtime due to increased volume at some terminals; government mandated and contractual wage adjustments; and unfavorable currency effect of BRL spending at ICTSI Rio and Tecon Suape SA (TSSA) in Brazil. This was partially reduced by ongoing cost optimization measures and a favorable currency effect primarily from spending based on the Philippine Peso (PHP), Australian Dollar (AUD), Pakistani Rupee (PKR) and Polish Zloty ( PLN), in Philippine terminals, Victoria International Container Terminal (VICT) in Melbourne, Australia, Pakistan International Container Terminal (PICT) in Karachi, Pakistan, and Baltic Container Terminal (BCT) in Gdynia, Poland, respectively. Excluding the cost associated with the new terminals, consolidated cash operating expenses would have increased by 11%.

Consolidated EBITDA for the first six months of 2022 increased by 26% to US$672.1 million, compared to US$532.5 million in 2021, mainly due to higher revenues from its global port operations , partially reduced by the increase in cash operating expenses. Consequently, the EBITDA margin fell from 60% in 2021 to 63% in the first half of 2022.

Consolidated finance costs and other expenses increased 30% to US$88.9 million for the first six months ended June 30, 2022 from US$68.6 million in 2021, primarily due to
increased interest and financing charges on borrowings primarily due to the issuance of US$300 million senior notes in November 2021, which funded the repayment of US$183.8 million at 5.875% and US$85.2 million of 4.875% senior secured perpetual securities with redemption dates in 2022 and 2024, respectively; the consolidation of the outstanding loan of the Company’s new terminal in the Philippines; and higher COVID-19 related expenses.

Capital expenditures, excluding capitalized borrowing costs, were $231.3 million for the first six months of 2022. This was primarily for ongoing expansion projects at the Manila International Container Terminal (MICT) in the Philippines, VICT in Melbourne, Australia, ICTSI DR Congo SA (IDRC) in Matadi, Democratic Republic of Congo, Contecon Manzanillo SA de CV (CMSA) in Manzanillo, Mexico, and the acquisition of land in the Philippines and Brazil for new projects. The Group’s capital budget for 2022 is approximately US$330.0 million. This will mainly be used for the payment of the initial concession extension fees to Madagascar International Container Terminal Services Ltd. (MICTSL); the continued expansion of the Company’s terminals in the Democratic Republic of the Congo, Australia, Mexico and the Philippines; equipment acquisitions and upgrades; and for various maintenance needs.

ICTSI is one of the world’s leading developers, managers and operators of container terminals in the 50,000 to 3.5 million TEU/year range. ICTSI operates on six continents and continues to seek container terminal opportunities worldwide.
Source: ICTSI

Share.

About Author

Comments are closed.