ICTSI performs strongly in 2020 despite COVID-19 pandemic

International Container Terminal Services Inc. (ICTSI) posted revenues from operations of US$1.505 billion last year, up 2% from the US$1.481 billion it reported in 2019, according to audited consolidated financial results for 2020 that the Philippines-based global port operator released yesterday, March 4. Its earnings before interest, taxes, depreciation and amortization (EBITDA) reached US$876.8 million, 6% more than the US$830.1 million generated in 2019. Meanwhile, its net income attributable to equity holders totaled US$101.8 million, 1% higher than the US$100.4 million earned in 2019.

The net income increase was mainly due to higher revenues, lower cash operating expenses resulting from the continuous group-wide cost-reduction and optimization measures, positive contribution of a new terminal in Rio de Janeiro, Brazil, and lower equity in net loss of joint ventures. This figure would have been higher were it not for the increase in interest on concession rights payable recognized at the new terminal in Cameroon and the full-year impact of the new terminal in Brazil; additional impairment charges; and COVID-19 related expenses. Equity in net loss of joint ventures was lower by 38% at US$12.3 million in 2020 from US$19.7 million in 2019 mainly due to the decrease in the company’s share in the net loss at Sociedad Puerto Industrial Aguadulce S.A. (SPIA), its joint venture container terminal project with PSA International Pte. Ltd. (PSA) in Buenaventura, Colombia and an increase in its share in net income in Manila North Harbor Port Inc. (MNHPI).  Diluted earnings per share declined 3% to US$0.0198 from US$0.0204 in 2019.  Excluding non-recurring charges, recurring net income in 2020 was 9% higher at US$282.1 million compared to the US$259.1 million earned the previous year.

In 2020, ICTSI recognized additional impairment charges of US$180.3 million composed principally of impairment charges on the concession rights assets of Tecplata S.A., its container terminal operations in Buenos Aires, Argentina, and other non-financial assets.  In 2019, the company recognized non-recurring charges totaling US$158.7 million related to the impairment of concession rights assets of Tecplata amounting to US$156.0 million and an acceleration of debt issue cost amounting to US$2.7 million.

ICTSI handled a consolidated volume of 10,193,384 TEUs in 2020, marginally higher by 0.2% compared to the 10,178,018 TEUs handled in 2019 due to the contribution of ICTSI Rio, the company’s new terminal operations in Rio de Janeiro in Brazil; improvement in trade activities in the second half of 2020 as lockdown restrictions in most parts of the world eased; and new contracts with shipping lines and services at certain terminals. The increase in volume would have been higher were it not for a decline in trade activities mainly in the first half of 2020 which resulted from the impact of the COVID-19 pandemic on global trade and lockdown restrictions.  Excluding the contribution of its new terminal in Rio de Janeiro, consolidated organic volume would have decreased by 2% in 2020.

Commenting on the company’s performance last year, Enrique K. Razon Jr., ICTSI chairman and president, said: “ICTSI has delivered a positive performance in very challenging circumstances and it highlights not only the significant dedication and commitment of our colleagues who have performed strongly throughout the pandemic but also the agility and strength of our business.”

“We were swift to take action at the start of the pandemic to initiate cost reduction, reduce capital expenditures, and later seized opportunities to lengthen our debt maturities at lower rates,” he added.  “At the same time, we stepped up our social community support and increased health and safety measures at all our ports to ensure that we all remain resilient in these extraordinary times. These actions have helped us to navigate a severe weakening of demand at some of our key terminals around the world.”

Continuing, he said: “And as our volumes rebounded from their lows when lockdown restrictions began to lift in the second half, so did our margins reflect the benefits of these actions. Those gains have continued into the new financial year as ICTSI emerges from these trying times leaner, stronger and optimistic of the future as governments around the world begin the herculean task of global mass vaccination.”

Fuente:   ICTSI News Release