THE International Container Terminal Services Inc. (ICTSI) said its cargo volume group-wide dropped 20 percent to date.
ICTSI sees this drop to significantly impact the company’s revenues this year.
“As far as revenues, we have suffered tremendously… being almost 20 percent down in volume year-to-date. It’s not anything that we forecasted. We were quite hopeful for even higher growth than last year, (but) clearly it’s not going to be the case this year,” Justin Tolentino ICTSI director commercial and risk management said during a webinar hosted by the German-Philippine Chamber of Commerce and Industry.
At ICTSI’s flaship, Manila International Container Terminal overall yard utilization stood at 43.82 percent as of May 23, which is way below the port’s capacity. The average container dwell time is 6.26 days for import and 2.89 days for export.
Tolentino said ICTSI expects a downturn this year and a growth only after two years.
“We’re seeing to get to the 2019 level… it will take us to early 2022. It depends on people’s buying power, people’s behaviour afterwards (the new coronavirus disease pandemic). It’s quite hard to forecast,” he added.
Trading activities of consumer goods and essentials continue but big-ticket items like automotive and textile have suffered significantly, according to Tolentino.
For this year, ICTSI has reduced its planned capital spending to $100 million from a previous $300 million plan with the amount going to improvements in Congo, Manila, Mexico ports.
ICTSI reported a consolidated net income of $132.7 million in 2019 a decline of 43.7 percent from $235.8 million earned in 2018. Gross revenues from port operation increased 7 percent to $1.5 billion.
In the first quarter this year, ICTSI said profit reached $59.6 million, down 18 percent from $72.4 million last year. Revenue was down two percent to $375.8 million from $383.8 million last year. Earnings before interest, taxes, depreciation and amortization stood at $212.2 million, down five percent from $222.5 million in 2019.
