International Container Terminal Services, Inc (ICTSI) reported a 22% increase in first-half net income to $589.98 million, driven by higher container volumes and contributions from new terminals.
Gross revenue from port operations expanded by 27% to $1.92 billion for the six months ended June 30. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 24% to $1.23 billion.
Excluding a non-recurring charge from the sale of its Yantai terminal in China, net income would have grown 25% to $604.69 million.
“ICTSI delivered a strong first half, with double-digit growth in volumes, revenues and earnings supported by contributions from recently added terminals and stable performance across our existing portfolio,” ICTSI chairman and president Enrique K. Razon Jr said in a statement.
“Despite a more challenging operating backdrop in some markets during the period, our diversified footprint continued to provide resilience and support strong financial and operational performance,” Razon added.
Consolidated cargo volumes handled grew 16% to 8.11 million wenty-foot equivalent units (TEUs), driven by trade improvements in Asia and the Americas, as well as new volume from Durban Gateway Terminal in South Africa and Batu Ampar Container Terminal in Indonesia.
Excluding new and discontinued operations, underlying volume increased by 1%. Volume increases were partially offset by declines at its Iraq operations due to geopolitical conflict in the Middle East and the deconsolidation of the Yantai terminal.
First-half cash operating expenses went up 39% to $529.34 million, driven by integration costs for the Durban terminal, higher fuel prices stemming from Middle East tensions, and wage increases.
For the second quarter, ICTSI posted a 21% rise in net income to $296.41 million as revenue expanded 25% to $958.73 million.
Capital expenditures for the first six months totaled $320.05 million, against a full-year target of $740 million allocated toward terminal expansions across Mexico, the Philippines, Brazil, the Democratic Republic of Congo, Honduras, Australia, and Ecuador.
