International Container Terminal Services Inc. (ICTSI) looks to spend $400 million as capital expenditures this year, slightly higher than the $386.35 million actually spent in 2022.
ICTSI posted $618.46 million in profit last year, up 44 percent from $428.57 million in 2021.
Revenues grew 20 percent to $2.24 billion from $1.87 billion.
The global container terminal operator said the capital expenditures will be spent for the ongoing expansion at the company’s terminals in Australia, Mexico, the Philippines and Democratic Republic of Congo; second tranche of concession extension related expenditures in Madagascar; yard expansion at International Container Terminal Services Nigeria Ltd. (ICTSNL) which is the company’s new terminal in Port of Onne, Nigeria; quay expansion at ICTSI Rio in Brazil; development of a newly acquired terminal in East Java in Indonesia; equipment acquisitions and upgrades; and for maintenance requirements.
Enrique K. Razon, Jr., ICTSI chairman, said the profit growth was achieved on the back of a 9- percent volume growth to 12.22 million twenty-foot equivalent units (TEUs).
“In a year marked by geopolitical unrest and inflationary pressures, we took clear and robust actions to focus on our cost initiatives and implemented a selective and disciplined capex program which has pleasingly created value for our stakeholders. While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth,” he said.
The volume growth was primarily due to the consolidation of Manila North Harbour Port, Inc. (MNHPI) in Manila starting September; volume growth and improvement in trade activities as economies continue to recover from the impact of the COVID-19 pandemic and lockdown restrictions; and new shipping lines and services at certain terminals.
“Excluding the volume contribution of MNHPI, ICTSNL and Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR) in Davao, Philippines which ceased operations on June 30, 2022, consolidated volume would have increased by five percent,” ICTSI said.
ICTSI said the topline growth was partially tapered by decline in trade activities at – Pakistan International Container Terminal in Karachi, Pakistan, and unfavorable translation impact mainly due to the depreciation of the peso – and Australian dollar- based revenues at Philippine terminals and Victoria International Container Terminal (VICT) in Melbourne, Australia, respectively, and euro-based revenues at Madagascar International Container Terminal Services Ltd. and Adriatic Gate Container Terminal in Madagascar and Croatia, respectively.
“Excluding the consolidated revenues of MNHPI, the new terminals and businesses, and the cessation of operations at DIPSSCOR and Hijo International Port Services Inc. in Davao, Philippines, consolidated gross revenues would have increased by 17 percent,” ICTSI said.
Earnings before interest, taxes, depreciation and amortization (EBITDA) hit $1.41 billion, up 24 percent from $1.14 billion in 2021, for an EBITDA margin of 63 percent, up from 61 percent in 2021.
Last year’s capex was spent mainly for ongoing expansions at VICT, Manila International Container Terminal in the Philippines, ICTSI DR Congo S.A. in Matadi, Democratic Republic of Congo and Contecon Manzanillo S.A. de C.V. in Manzanillo, Mexico; the acquisition of land at the Port of Manila in the Philippines; and concession-extension related expenditures at MICTSL in Madagascar,” it said.
ICTSI manages and operates container terminals in the 50,000 to 3.5 million TEUs/year range.
It operates 33 terminals in 20 countries across six continents.
