• Home
  • News
  • 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 October 6

19:30 Loading of General Chernyakhovsky ferry begins following flag-hoising ceremony
18:07 MSC updates Noumea Express service
17:29 Russian Maritime Register of Shipping issues statement on the EU Council press release of October 6, 2022
17:27 100-pct stock of Murmansk Sea Fish Port collected in favor of the state under action filed by FAS
17:12 EU adopts its latest package of sanctions against Russia
17:05 Three partners to join the North Field South development project
16:58 Nexans signs Empire Wind contract to bring renewable energy to New York
16:39 RF Government counts on having about 1,100 various ships built at domestic shipyards by 2030
16:38 JCB appoints Maersk as its new global Lead Logistics Provider
16:13 Port Houston orders 26 eco-efficient hybrid Konecranes RTGs
15:35 EST-Floattech signs contract for refit to hydrogen-electrical propulsion of 'FPS Maas' inland shipping barge
15:20 Cargo traffic on North-South ITC can double by 2030 – Mikhail Mishustin
14:58 KSOE wins orders for 7 vessels worth over KRW2tn - BusinessKorea
14:37 EU agrees on eighth package of sanctions against Russia
13:41 MABUX: Bunker Weekly Outlook, Week 40, 2022
13:19 Port of Gdansk handled over 7.6 million tonnes of coal year-to-date
12:55 Allseas to fit vessels with hybrid power solutions from Kongsberg Maritime
12:15 Russian ships can carry about 90 million tonnes of cargo per year
11:36 LR signs contract with Birdon for new Royal Australian Navy Sail Training Ship
11:08 First batch of coal shipped from Syradasayskoye field on Taimyr peninsula
10:34 AB Klaipėdos Nafta declares purchase option to acquire Independence
10:30 Oil production in Russia to decrease by 6-7% in 2023 - Alexander Novak
10:09 NYK and Group Company to introduce integrated shipping system as a DX Foundation
09:47 Wartsila and Capital Gas to partner in greenhouse gas reduction with Fleet Decarbonisation Programme
09:26 OPEC+ approved oil production cut by 2 million barrels a day
09:01 MABUX: In Global bunker market upward trend to continue on Oct 06
07:50 Crowley completes the purchase of 42 acres in Salem, Massachusetts, for the development of the state’s second major offshore wind port terminal

2022 October 5

18:37 Austal Australia to undertake patrol boat autonomy trial for Royal Australian Navy
18:06 Associated British Ports signs new agreement with the UK’s largest privately owned fertiliser importer
17:55 Initiation ceremony for cadets of Admiral Makarov State University of Maritime and Inland Shipping held in Kronstadt
17:36 Kongsberg Digital signs new partnership agreement with Alpha Ori Technologies
17:25 Unmanned electric passenger ships can appear in Saint-Petersburg
17:06 MSPs back Forth Green Freeport bid to deliver green growth plan for Scotland
16:52 DSME lands LNG carrier orders worth KRW1.85tn - BusinessKorea
16:08 GTT receives an order from Hyundai Heavy Industries for the tank design of seven LNG carriers
15:50 Container traffic on Russian Railways’ internal network in 9M’2022 rose by 3.6% YoY
15:36 WSC, ICS and ASA submit their input to the European Commission on the renewal of the CBER
15:27 Bunker sales at Vladivostok port in 9M’2022 fell by 28% YoY
15:04 Alfa Laval to be a technology partner for the project to investigate the on-board capture, storage and off-loading of carbon dioxide
14:41 IMO's GreenVoyage2050 celebrates five years of its Global Industry Alliance to Support Low Carbon Shipping
14:18 Marine passenger infrastructure of Saint-Petersburg should be converted to cater for inland water transport ‒ expert
14:12 ABS approves pioneering autonomous technology for HHI Group
13:54 NOREBO commences preparation works on construction of reefer terminal “Udarnik” in Murmansk Region
13:32 Pavilion Energy and MOL name newbuild LNG bunker vessel
13:02 General cargo ship bound for Russia disabled in Bosphorus - FleetMon
12:42 USC commences serial production of propulsion/steering units ДРК1200М
12:20 UK Government funds consortium led by Unitrove to deliver world’s first zero-emission multi-fuel station for hydrogen and electric ships
12:01 Finnlines to launch two new ro-pax vessels in autumn 2023
11:36 MOL signs LNG carrier charter contract for Sakhalin II project
11:29 Throughput of Azov port in 9M’2022 fell by 13% YoY to 6.8 million tonnes
11:21 Port of Rotterdam Authority presents future scenarios for 2050
11:01 Singapore sets out to drive transformation in bunkering on the world's largest forum for the marine fuel industry
10:39 A.P. Moller - Maersk orders six large ocean-going vessels that can sail on green methanol
10:20 Anemoi and COSCO Shipping Heavy Industry to offer full wind propulsion technology installation services
10:05 Shearwater GeoServices to introduce the geophysical company’s first dual ROV seismic vessel
09:39 MOL joins Blue Visby Consortium
09:28 Traffic volumes on Ust-Luga – Baltiysk ferry line are stable
08:52 MABUX: Upward changes to continue in Global bunker market on Oct 05

2022 October 4

18:43 Samskip adds Value Maritime CO2 capture to decarbonisation strategy
18:32 DEME upgrades DP fallpipe vessel fleet