ICTSI income up by 50% in H1

Razon-led International Container Terminal Services Inc. (ICTSI) continues to overcome the global trade slowdown triggered by the war in Europe and even raised its profit by half in the first semester.

In a disclosure to the Philippine Stock Exchange (PSE), ICTSI said its net income grew by 50 percent to $294.5 million in the first half of the year from $196.7 million in the same period last year.

ICTSI chairman and CEO Enrique Razon Jr. said he is optimistic that the firm could grow even as the world faces yet another economic trouble with Russia’s invasion of Ukraine.

Razon stressed the need for expertise and experience in navigating the uncertainties facing the economy.

For the first semester, ICTSI registered improved operating income, net foreign exchange gain and equity share in net profit of joint ventures, as well as added contribution from new terminals.

The growth, according to ICTSI, was partially tempered by the increases in amortization and depreciation.

ICTSI’s earnings before interest, taxes, depreciation and amortization (EBITDA) jumped by 26 percent to $672.1 million from $532.5 million on the back of strong inflows from its international ports.

“Consequently, EBITDA margin increased to 63 percent in the first half of 2022 from 60 percent in 2021,” ICTSI said.

Likewise, revenues generated by the port manager rose by a fifth to $1.06 billion in the first half from a year ago level of $882.6 million, benefitting from the resumption of trade activities with the lifting of pandemic restrictions worldwide.

ICTSI has spent a total of $231.3 million in capital expenditures mostly for upgrades of its existing ports in the first semester.

Last month, maritime expert Drewry recognized ICTSI as the largest wholly independent port operator in the world with presence across six continents. Also, the port manager was ranked as the eighth top global terminal operator (GTO) worldwide.

Based on data, GTOs, including ICTSI, managed more than two-thirds of the global port volume at the height of the pandemic in 2020.

ICTSI raised its capital expenditures to $330 million for this year from $165 million last year to bankroll the construction, maintenance and modernization of ports here and abroad.