International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the first half of 2021 posting revenue from port operations of US$882.6 million, an increase of 22 percent from the US$724.3 million reported for the first six months of 2020; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$532.5 million, 28 percent higher than the US$416.4 million generated the same period last year; and net income attributable to equity holders of US$196.7 million, 73 percent more than the US$113.4 million earned in the first half of 2020 primarily due to higher operating income; significant reduction in equity in net loss of joint ventures, partially tapered by increase in interest expense on loans, concession rights payable, and lease liability; and higher depreciation and amortization expenses associated with the new terminals. Diluted earnings per share for the first half of 2021 was at US$0.081 compared to US$0.043 in the same period in 2020.
For the quarter ended June 30, 2021, revenue from port operations increased 28 percent from US$348.5 million to US$447.0 million; EBITDA was 31 percent higher at US$267.7 million from US$204.2 million; and net income attributable to equity holders was at US$106.6 million, 98 percent more than the US$53.8 million in the same period in 2020. Diluted earnings per share for the second quarter of 2021 was at US$0.045 compared to US$0.020 in the same period in 2020.
ICTSI handled consolidated volume of 5,459,523 twenty-foot equivalent units (TEUs) in the first six months of 2021, 14 percent more than the 4,799,765 TEUs handled in the same period in 2020. The increase in volume was primarily due to 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. For the quarter ended June 30, 2021, total consolidated throughput was 20 percent higher at 2,751,731 TEUs compared to 2,290,779 TEUs in 2020.
Gross revenues from port operations for the first half of 2021 increased by 22 percent to US$882.6 million from the US$724.3 million reported in the same period in 2020 mainly due to volume growth; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services; and the contribution of new terminals ICTSI Nigeria Ltd (ICTSNL) in Nigeria, Manila Harbor Center Port Services, Inc. (MHCPSI) in the Philippines and Kribi Multipurpose Terminal (KMT) in Cameroon. Excluding the contribution of these new terminals, consolidated organic gross revenues would have increased by 21 percent in the first half of 2021. For the second quarter of 2021, gross revenues increased 28 percent from US$348.5 million to US$447.0 million.
Consolidated cash operating expenses in the first semester of 2021 was 11 percent higher at US$248.2 million compared to US$222.8 million in the same period in 2020. The increase in cash operating expenses was mainly due to the increase in equipment and facilities-related expenses and contracted services in relation to volume; cost associated with the new terminals in Nigeria, Philippines and Cameroon; and unfavorable foreign exchange effect of Mexican Peso (MXN)-based expenses at Manzanillo, Mexico, Australian Dollar (AUD)-based expenses in Melbourne, Australia, and Philippine Peso (PHP)-based expenses at Philippine terminals; partially tapered by continuous cost optimization measures; and favorable foreign exchange effect of Iraqi Dinar (IQD)-based expenses at ICTSI Iraq, Brazilian Reais (BRL)-based expenses at TSSA and ICTSI Rio in Suape and Rio de Janeiro, Brazil, respectively. Excluding the cost associated with the new terminals, consolidated cash operating expenses would have increased by nine percent.
Consolidated EBITDA increased 28 percent to US$532.5 million for the first six months of 2021 from US$416.4 million in 2020 mainly due to higher revenues, partially tapered by the increase in cash operating expenses. EBITDA margin, on the other hand, increased to 60 percent in the first half of 2021 from 57 percent the previous year.
Consolidated financing charges and other expenses for the first half of 2021 increased one percent from US$67.7 million in 2020 to US$68.6 million primarily due to the issuance of US$400M senior notes in June 2020 tapered by lower COVID-19 related expenses.
Capital expenditures, excluding capitalized borrowing costs, for the six months ended June 30, 2021 amounted to US$74.4 million. These were mainly for the ongoing expansions at Manila International Container Terminal (MICT) in the Philippines and ICTSI DR Congo (IDRC) in Democratic Republic of Congo; and acquisition of port facilities and equipment at ICTSNL in Port of Onne in Nigeria.
The Group’s capital expenditure budget for 2021 is approximately US$250.0 million. The estimated capital expenditure budget will be utilized mainly for the completion of the expansion project at MICT, the ongoing yard expansion at IDRC, the new expansion project at Victoria International Container Terminal (VICT) in Melbourne, Australia, equipment acquisitions and upgrades, and for various maintenance requirements.
ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 to three million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.
ABOUT INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.
Headquartered and established in 1988 in Manila, Philippines, International Container Terminal Services, Inc. is in the business of port development, management and operations. ICTSI’s portfolio of terminals and projects are located in developed and emerging market economies in the Asia Pacific, the Americas, and Europe, the Middle East and Africa. Independent with no shipping or consignee-related interests, ICTSI works and transacts transparently with all stakeholders of the supply chain. ICTSI continues to receive global acclaim for its public-private partnerships, which are focused on sustainable development, and supported by corporate social responsibility initiatives.