International Container Terminal Services Inc. (ICTSI) said it grew its profit in the first nine months of the year by 4 percent to $484.54 million from $465.13 million in the same period last year.
Revenues grew 7 percent to $1.76 billion from $1.64 billion.
ICTSI said it handled 9.45 million twenty-foot equivalent units (TEUs) containers of cargoes for the period, up 7 percent from 8.86 million in 2022, attributed the consolidation of the Manila North Harbour Port Inc. (MNHPI) operation in Manila, starting September 2022, as well as new services at certain terminals.
The company ceased operations of Pakistan International Container Terminal (PICT) in Karachi; the cargo handling in Makassar Terminal Services (MTS) in , Indonesia and the stevedoring operations in Davao.
“Excluding the contribution of MNHPI, PICT, MTS and DIPSSCOR (Davao Integrated Port and Stevedoring Services Corp.), consolidated volume would have marginally increased by one percent,” the company said.
“Looking ahead, whilst we continue to expect a challenging macro-economic and geo-political environment, 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,” said Enrique K. Razon, ICTSI chairman.
Earnings before interest, taxes, depreciation and amortization was at $1.11 billion, up 7 percent higher from $1.04 billion last year. EBITDA margin, on the other hand, remained flat at 63 percent in the first nine months of 2023.
Consolidated cash operating expenses in the first nine months of 2023 was 12 percent higher at $489.14 million compared to $438.13 million in 2022.
The increase in cash operating expenses was mainly due to the costs contribution of MNHPI and of new businesses at IRB Logistica; government-mandated and contracted salary rate adjustments; increase in repairs and maintenance; volume-driven increase in contracted services; increases in professional fees, transportation and travel expenses mainly related to business development activities; and unfavorable foreign exchange effect mainly of MXN-based expenses at CMSA.
Consolidated financing charges and other expenses increased one percent to $132.68 million for the first nine months ended September 30, 2023 from $130.83 million in 2022 mainly due to higher interest and financing charges on short-term and long-term loan availments and a nonrecurring impairment of goodwill attributed to PICT. This was partially offset by lower Covid 19-related expenses.
Capital expenditures, excluding capitalized borrowing costs, amounted to $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 $400 million.
For the quarter ended September 30, 2023, revenue from port operations increased three percent from $576.70 million to $594.88 million; EBITDA was three percent higher at $377.85 million from $365.85 million; and net income attributable to equity holders marginally increased to $170.74 million from $170.66 million in the same period in 2022.
ICTSI is a leading global developer, manager and operator of container terminals in the 50 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.