Container volumes across the International Container Terminal Services, Inc. (ICTSI) terminal portfolio increased by 3% to 2.63m teu in the third quarter of the year, as trade grew following the end of initial lockdowns relating to the COVID-19 pandemic.
During the third quarter, revenue from port operations jumped by 7% to US$379m while net income leapt by 23% to US$69m.
Enrique K. Razon, Jr., ICTSI chairman and president, said: “I am pleased to report that our performance for the third quarter benefited from the cost preservation measures we took to mitigate the adverse effects of the pandemic.
“Our actions, together with improvements in global trade, a diversified portfolio, and high levels of customer service have helped to deliver an improved performance compared to the same period in the previous year.”
However, volumes fell by 2% to 7.42m teu across the first nine months of the year, as trade activities declined due to the impact of the COVID-19 pandemic.
Excluding the contribution of ICTSI Rio, the company’s new terminal in Rio de Janeiro, Brazil, consolidated organic volume would have decreased 4% in the first nine months of 2020.
Despite the lower volumes, the terminal operator’s revenue from port operations totalled US$1.1bn over the first three quarters of the year, representing a 0.3% drop compared to the same period last year. Meanwhile, EBITDA grew by 3% to US$643m.
Net income fell by 1% to US$183m mainly owing to higher interest on concession rights payable and COVID-19 related expenses. This was partially tapered by higher operating income, improvement in net operating results in Melbourne, Australia and lower equity in net loss of joint ventures.
Razon added: “The pandemic continues to present uncertainties and we are very mindful of how unpredictable the environment is, as certain parts of the world move to a secondary lockdown, and we remain cautious.
“However, ICTSI is well positioned to benefit further should global trade continue to show signs of recovery, underpinned by our stringent cost management, ability to swiftly respond to changing situations and our diverse geographical presence.”
Capital expenditure, excluding capitalised borrowing costs, amounted to US$129m, catering for the ongoing expansion at Manila International Container Terminal (MICT), Contecon Manzanillo, Contecon Guayaquil, Basra Gateway Terminal and ICTSI DR Congo.
Amid the ongoing impact of the COVID-19 pandemic on global trade, the group has reduced its capital expenditure plan for the year to approximately US$160m, which will be utilised mainly to complete the ongoing expansion projects.