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  • ICTSI net income up 50% to US$294.5mln in H1 2022
  • 2022 August 5 09:28

    ICTSI net income up 50% to US$294.5mln in H1 2022

    International Container Terminal Services, Inc. (ICTSI) reported unaudited consolidated financial results for the first half of 2022 posting revenue from its global port operations of US$1.06 billion, an increase of 20 percent from the US$882.6 million reported for the first six months of 2021; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$672.1 million, 26 percent higher than the US$532.5 million generated the same period last year; and net income attributable to equity holders of US$294.5 million, 50 percent more than the US$196.7 million earned in the first half of 2021 primarily due to higher operating income; higher net foreign exchange gain, increase in equity share in net profit of joint ventures; and strong contribution of new terminals; partially tapered by increase in depreciation and amortization, and interest on loans, concession rights payables and lease liabilities.

    Equity share in net profit of joint ventures increased in the first half of 2022 by 308 percent to US$3.0 million from US$742 thousand for the same period in 2021 due to the company’s share in higher net earnings in Manila North Harbour Port, Inc. (MNHPI) and lower net loss in Sociedad Puerto Industrial Aguadulce S.A. (SPIA). Diluted earnings per share for the first half of 2022 surged 68% to US$0.135 compared to US$0.081 in the same period in 2021 due to higher net income and lower cumulative distributions to holders of perpetual capital securities.
    For the quarter ended June 30, 2022, revenue from global port operations increased 20 percent from US$447.0 million to US$534.6 million; EBITDA was 25 percent higher at US$334.3 million from US$267.7 million; and net income attributable to equity holders was at US$152.2 million, 43 percent more than the US$106.6 million in the same period in 2021. Diluted earnings per share for the second quarter of 2022 was 57 percent higher at US$0.070 compared to US$0.045 in the same period in 2021.
    ICTSI handled consolidated volume of 5,752,582 twenty-foot equivalent units (TEUs) in the first six months of 2022, five percent more compared to the 5,459,523 TEUs handled in the same period in 2021 primarily due to volume growth and general 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, 2022, total consolidated throughput was six percent higher at 2,919,581 TEUs compared to 2,751,731 TEUs in 2021.
    Gross revenues from the company’s global port operations for the first half of 2022 increased by 20 percent to US$1,062.9 million compared to the US$882.6 million reported in the same period in 2021 mainly due to volume growth at most terminals; favorable container mix; tariff adjustments at certain terminals; new contracts with shipping lines and services; higher revenues from ancillary services, and contribution of new terminals Manila Harbor Center Port Services, Inc. (MHCPSI) in the Philippines, International Container Terminal Services Nigeria Ltd. (ICTSNL) in Nigeria and IRB Logistica in Brazil; partially tapered by decline in trade activities and unfavorable impact of foreign exchange at certain terminals. Excluding the contribution of the new terminals in Philippines, Nigeria and Brazil, consolidated gross revenues from its global port operations would have increased by 17 percent in the first half of 2022. For the second quarter of 2022, gross revenues increased 20 percent from US$447.0 million to US$534.6 million.
    Consolidated cash operating expenses in the first six months of 2022 was 14 percent higher at US$283.9 million compared to US$248.2 million in 2021. The increase in cash operating expenses was mainly due to additional cost associated with the new terminals in Philippines, Nigeria and Brazil; higher equipment and facilities-related expenses resulting from increase in prices and consumption of fuel and power driven by volume growth; higher contracted services and overtime as a result of volume increase at certain terminals; government-mandated and contracted salary adjustments; and unfavorable foreign exchange effect of BRL-based expenses at ICTSI Rio and Tecon Suape S.A. (TSSA) in Brazil. This was partially tapered by continuous cost optimization measures and favorable foreign exchange effect mainly of Philippine Peso (PHP)-, Australian Dollars (AUD)-, Pakistani Rupee (PKR)-, and Polish Zloty (PLN)- based expenses at Philippine terminals, Victoria International Container Terminal (VICT) in Melbourne, Australia, Pakistan International Container Terminal (PICT) in Karachi, Pakistan, and Baltic Container Terminal (BCT) in Gdynia, Poland, respectively. Excluding the cost associated with the new terminals, consolidated cash operating expenses would have increased by 11 percent.
    Consolidated EBITDA for the first six months of 2022 increased 26 percent to US$672.1 million from US$532.5 million in 2021 mainly due to higher revenues from its global port operations, partially tapered by the increase in cash operating expenses. Consequently, EBITDA margin increased to 63 percent in the first half of 2022 from 60 percent in 2021.
    Consolidated financing charges and other expenses increased 30 percent to US$88.9 million for the first six months ended June 30, 2022 from US$68.6 million in 2021 mainly due to higher interest and financing charges on borrowings primarily due to the issuance of US$300 million senior notes in November 2021 which funded the redemption of US$183.8 million worth of 5.875 percent and US$85.2 million of 4.875 percent senior guaranteed perpetual capital securities with call dates in 2022 and 2024, respectively; the consolidation of the outstanding loan of the Company’s new terminal in the Philippines; and higher COVID-19 related expenses.
    Capital expenditures, excluding capitalized borrowing costs, amounted to US$231.3 million for the first six months of 2022. These were mainly for ongoing expansion projects at Manila International Container Terminal (MICT) in the Philippines, VICT in Melbourne, Australia, ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo, Contecon Manzanillo S.A. de C.V. (CMSA) in Manzanillo, Mexico, and the acquisition of land in the Philippines and in Brazil for new projects. The Group’s capital expenditure budget for 2022 is approximately US$330.0 million. This will be utilized mainly for the payment of the concession extension upfront fees at Madagascar International Container Terminal Services Ltd. (MICTSL); ongoing expansion at the Company’s terminals in Democratic Republic of Congo, Australia, Mexico and Philippines; equipment acquisitions and upgrades; and for various maintenance requirements.
    ICTSI is the global developer, manager and operator of container terminals in the 50.0 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.

2022 August 15

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16:20 Container throughput of Hong Kong port (China) in 7M’2022 fell by 4.3% to 8.65 million TEU
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15:23 TECO2030 receives BWTS order
15:02 Greenpeace activists target Oldendorff vessel as part of ‘No new gas’ protest
14:23 Fishing vessel sinks off San Juan Island, oil sinks - U.S. Coast Guard
14:03 ZeroLab by Klaveness and South32 complete shipping emissions analysis
13:35 Nordic Engineering and Information & Analytical Center of State Commission for Arctic Development sign cooperation agreement
13:13 The Lower Parana Coast Guards revises speed regulations on Parana river
12:41 Alfa Laval FCM Methanol chosen as the fuel supply system for six methanol-fuelled container vessels
12:12 AMSA provides aerial support for catamaran
11:42 ONE adds Mombasa port call to MIM service
11:36 FESCO’s foreign trade cargo turnover via Far East ports rose by 19% to 131,000 TEU in H1’22
11:19 DEME’s next-generation vessel ‘Orion’ successfully installs the Fécamp offshore substation jacket and topside
10:49 Port of Tanjung Pelepas becomes first container terminal in Malaysia to surpass 1 mln TEUs a month
10:24 Waleid Gamal Eldien appointed as Chairman for Suez Canal Economic Zone
09:45 Far East Shipping Company (FESCO) reports 6-fold surge of its RAS net profit
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2022 August 14

14:51 DEME’S next-generation vessel "Orion" successfully installs the Fécamp offshore sustation jacket and topside
13:18 USCG awards contract to expand East Tongue Point facilities
12:46 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade Holdings Inc.
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2022 August 13

14:17 Golden Energy Offshore Services secures long-term contract in Caribbean
12:01 PortsToronto renews commitment to green electricity by renewing agreement with Bullfrog Power for all operations including Billy Bishop Toronto City Airport
10:26 Hapag-Lloyd updates the Rhine River low water surcharge

2022 August 12

18:27 OKEE Maritime to enhance environmental performance with StormGeo's CII Solution
18:03 IAA PortNews’ summary of past week news
17:51 The Government of Canada announces funding for new technologies to reduce underwater noise from marine vessels
17:20 Avenir LNG signs MoU for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund, Sweden
17:02 NE China ports handle over 3,100 China-Europe freight train trips - The State Council the People's Republic of China
16:31 Russian Railways boosts loading of cargo bound for Azov-Black Sea Basin by 2.5% in 7M’22
16:24 Global container fleet to grow more than demand - Hapag-Lloyd CEO - Reuters
15:30 ZIM invested $5.5 million in provider of asset and fleet visibility solutions
15:03 Equinor’s H2H Saltend selected to proceed as one of the first large-scale hydrogen projects in the UK
14:58 Three new barges delivered cargo for construction of Amur Gas Chemical Complex
14:13 Grimsby River Terminal welcomes the first sustainable car carrier
14:03 CMA CGM service starts to call Yilport Gemlik
13:42 Maersk Drilling awarded two-month extension with TotalEnergies offshore Denmark
13:14 De Vlaamse Waterweg and Port of Antwerp-Bruges maintain the water level in the docks and the Albert Canal with a temporary pump installation
12:00 First Rijeka–Czech Republic direct cargo rail service established
11:55 Kazakhstan Transport Week will be held in Almaty from September 20-22, 2022
11:32 MacGregor has received a significant order to supply all-electric RoRo equipment to four PCTC vessels
11:02 Diana Shipping announces the acquisition of nine Ultramax dry bulk vessels from Sea Trade
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2022 August 11

18:30 Valenciaport strengthens relations with the Chinese region of Fujian
18:05 Yang Ming publishes financial report for H1 2022
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