International Container Terminal Services (ICTSI) reported a reduction in net income of 18% for the first quarter of the year (1Q2020) citing the impacts of COVID-19 on the sector as the cause.
However, despite the drop in income the company reported a 1% increase in TEU throughput for the quarter, attributing this to the new terminal in Rio de Janeiro in Brazil, which in 2019 ICTSI brought the concession rights to operate.
For the period ended 31 March the company reported net income attributable to equity holders of $59.6 million, according to a statement released on 7 May.
This represents 18% less than the US$72.4 million earned in the same period last year due to the lower operating income, increase in interest on concession rights payable and COVID-19 related expenses
Overall revenue for port operations totalled $375.8 million, a decrease of 2% from the same period in 2019. Activities declined due to the impact of COVID-19 and lockdown restrictions.
ICTSI handled consolidated volume of 2,508,986 TEUs for the quarter, just 1% more than the 2,478,672 TEUs handled in the same period in 2019.
The company attributes the slight increase to ICTSI Rio and new services at certain terminals; tapered by a decline in trade activities due to the impact of COVID-19 pandemic on global trade.
Excluding the contribution of ICTSI Rio, consolidated organic volume would have decreased by one percent in the first quarter of 2020. The company also notes that organic gross revenues would have decreased by 5%, not 2%, if ICTSI Rio was to be excluded.
From the Chairman
Enrique K. Razon Jr., ICTSI Chairman and President said, “During the first quarter, we took immediate action, and our response to COVID-19 focused on four key areas: protecting our people, continuing to provide excellent services to our customers, living by our deeply embedded values of caring for host communities and ensuring ICTSI continues to be financially strong.”
He noted that the effect of the virus was felt in the latter part of the first quarter, and volumes at ICTSI compared to the previous year were largely flat.
Highlight specific regions he said, “Regions are at different stages of the viral outbreak, which is reflected in our portfolio performance: Asia delivered lower volumes compared to the previous year while the EMEA and Americas segments both still registered positive volume growth for the quarter. However, the latter two regions showed signs of weakness in March.”
He concluded, “We have taken significant measures, which include reducing our cost base and capital expenditure while seeking ways to increase our market share in certain markets. We continue to monitor the situation carefully so we can adapt our responses.
“ICTSI is an agile business and able to act swiftly to ensure the business remains robust during these uncertain times.”
