International Container Terminal Services, Inc. (ICTSI) has reported unaudited consolidated financial results for the nine months of 2021, posting revenue from port operations of US$1.365 billion, an increase of 24 percent from the US$1.104 billion reported for the nine months of 2020; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$829.4 million, 29 percent higher than the US$643.2 million generated the same period last year; and net income attributable to equity holders of US$316.4 million, 73 percent more than the US$182.6 million earned in the nine months of 2020 primarily due to higher operating income and lower 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 nine months of 2021 was 91 percent higher at US$0.132 compared to US$0.069 in the same period in 2020.
For the quarter ended September 30, 2021, revenue from port operations increased 27 percent from US$379.3 million to US$482.4 million; EBITDA was 31 percent higher at US$296.9 million from US$226.8 million; and net income attributable to equity holders was at US$119.7 million, 73 percent more than the US$69.2 million in the same period in 2020. Diluted earnings per share for the third quarter of 2021 was 95 percent higher at US$0.052 compared to US$0.027 the same period in 2020.
ICTSI handled consolidated volume of 8,266,621 twenty-foot equivalent units (TEUs) in the first nine months of 2021, 11 percent more than the 7,426,307 TEUs handled in the same period in 2020. The increase in volume was primarily due to 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. For the quarter ended September 30, 2021, total consolidated throughput was seven percent higher at 2,807,098 TEUs compared to 2,626,542 TEUs in 2020.
Gross revenues from port operations for the first nine months of 2021 was 24 percent higher at US$1.365 billion compared to the US$1.104 billion reported in the same period in 2020 mainly due to higher volume; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services; contribution of new terminals; and net favorable impact of foreign exchange at certain terminals. The increase was partially tapered by decline in trade activities at certain terminals primarily due to the impact of COVID-19 pandemic. Excluding contribution of new terminals, consolidated gross revenues would have increased by 21 percent in the first nine months of 2020. For the third quarter of 2021, gross revenues increased 27 percent from US$379.3 million to US$482.4 million.
Consolidated cash operating expenses in the first nine months of 2021 was 16 percent higher at US$383.2 million compared to US$331.6 million in the same period in 2020. The increase in cash operating expenses was mainly due to the increase in equipment & facilities-related expenses and contracted services resulting from higher volume; additional cost associated with the new terminals; and unfavorable foreign exchange effect of Australian Dollar (AUD)-based expenses, Mexican Peso (MXN)-based expenses and Chinese Renminbi (RMB)-based expenses at the Company’s container terminal operations in Melbourne, Manzanillo and Yantai, respectively. The increase was partially tapered by continuous cost optimization measures; and favorable foreign exchange effect of Iraqi Dinar (IQD)-based expenses at ICTSI Iraq and Brazilian Reais (BRL)-based expenses at ICTSI Rio and Tecon Suape S.A. (TSSA), in Rio de Janeiro and Suape, Brazil, respectively. Excluding the cost associated with the new terminals, consolidated cash operating expenses would have increased by 12 percent.
Consolidated EBITDA increased 29 percent to US$829.4 million for the first three quarters of 2021 from US$643.2 million in 2020 mainly due to higher revenues, partially tapered by the increase in cash operating expenses. Excluding the contribution of new terminals, EBITDA would have increased by 27 percent. EBITDA margin, on the other hand, increased to 61 percent in the first nine months of 2021 from 58 percent the previous year.
Consolidated financing charges and other expenses for the first nine months of 2021 marginally increased by 0.1 percent from US$105.47 million in 2020 to US$105.53 million in 2021 primarily due to higher interest expense resulting from the issuance of US$400M 10-year senior notes in June 2020, tapered by lower COVID-19 related expenses.
Capital expenditures, excluding capitalized borrowing costs, for the nine months ended September 30, 2021 amounted to US$104.0 million. These were mainly for the ongoing expansion 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 International Container Terminal Services Nigeria Ltd. (ICTSNL) in the 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.
About ICTSI
ICTSI is a leading global developer, manager and operator of container terminals in the 50.0 thousand to 3.35 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.
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.