International Container Terminal Services Inc. said Monday said net income grew by 44 percent in 2022 on the back of higher operating income.
The port operator said net profit amounted to $618.46 million last year, up from $428.57 million in 2021. Revenue from port operations went up 20 percent to $2.24 billion from $1.87 billion.
“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 [capital expenditures] program which has pleasingly created value for our stakeholders,” said ICTSI chairman and president Enrique Razon Jr.
“While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth. I would like to thank colleagues across the Group who have worked hard to deliver an excellent year of results during a choppy year and the strength of our financial and operational results is testament to their hard work and commitment,” he said.
ICTSI handled consolidated volume of 12,216,190 twenty-foot equivalent units in 2022, or 9 percent more than 11,163,473 TEUs it registered in the same period in 2021.
It said the increase in volume was due to consolidation of Manila North Harbour Port Inc. in Manila starting September 2022; volume growth and improvement in trade activities as economies continued 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, International Container Terminal Services Nigeria Ltd.—the company’s new terminal in Port of Onne, Nigeria and Davao Integrated Port and Stevedoring Services Corp. in Davao which ceased operations on June 30, 2022, consolidated volume would have increased by 5 percent.
The company’s consolidated cash operating expenses in 2022 was 17 percent higher at $612.12 million compared to $523.33 million in 2021.
Capital expenditures, excluding capitalized borrowing costs, in 2022 amounted to $386.35 million. These were mainly for ongoing expansions at VICT in Melbourne, Australia; 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; and concession-extension related expenditures at MICTSL in Madagascar.
The group’s estimated capital expenditure for 2023 is about $400 million which would be utilized for the ongoing expansion at the company’s terminals in Australia, Mexico, the Philippines and Democratic Republic of Congo, among others.