Annual profit for International Container Terminal Services Inc (ICTSI) leapt 44% as the ports sector continued to come back from the pandemic’s negative impacts such as lower volumes and worker shortages.
The Philippines port operator posted $619m in net income for 2022, compared with $429m for the previous year.
Revenue improved 20% to $2.24bn for 2022 from $1.87bn for 2021, mainly due to volume growth and market recovery from the impact of the pandemic, the company said.
ICTSI attributed the better results to favourable container mix, tariff adjustments at certain terminals, new contracts with shipping lines and services and higher revenue from ancillary services.
The Philippines-listed company also credited the higher revenue to contributions from Manila North Harbor Port Inc (MNHPI) and new terminals Manila Harbor Center Port Services Inc, International Container Terminal Services Nigeria and IRB Logistica in Brazil.
“In a year marked by geopolitical unrest and inflationary pressures, we took clear and robust actions to focus on our cost initiatives and implemented a selective and disciplined capex programme, which has pleasingly created value for our stakeholders,” ICTSI chief executive Enrique Razon said in a statement.
“While the weaker economic backdrop continues, our business fundamentals remain constructive and we remain strongly positioned to deliver sustainable growth.”
Overall container volume for ICTSI , which also trades shares on the US over-the-counter market, totalled 12.2m teu, up 9% from the 11.2m teu handled in 2021.
The company said the higher volume was mostly due to consolidating MNHPI results starting in September 2022 and higher trade activities as economies continue to recover from the impact of Covid-19.
Capital expenditures for 2022 came in at $386m for ongoing expansions at ports owned in Australia, the Philippines, the Congo and Mexico, and buying land at the Port of Manila.
ICTSI expects to spend $400m on capex this year, mostly on further expanding these ports, developing a newly acquired terminal in East Java in Indonesia and maintaining all ports under its ownership.
