International Container Terminal Services, Inc. (ICTSI) reported a small 2% decrease in TEU throughput for the first nine months of 2020 in its latest financial results.
The container terminal operator also reported a drop in revenues of 0.3% to $1.1 billion and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased 3% to $643.2 million.
Enrique Razon, 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.”
ICTSI handled consolidated volume of 7,426,307 TEU in the first nine months of 2020, two percent less than the 7,590,090 TEUs handled in the same period in 2019. The decrease in volume was primarily due to the decline in trade activities which resulted from the impact of the COVID-19 pandemic on global trade and lockdown restrictions.
Excluding the contribution of ICTSI Rio, the company’s new terminal in Rio de Janeiro, Brazil, consolidated organic volume would have decreased four percent in the first nine months of 2020.
For the quarter ended September 30, 2020, total consolidated throughput was three percent higher at 2,626,542 TEUs compared to 2,548,175 TEUs in 2019.
“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,” he added.
“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.”
Gross revenues from port operations for the first nine months of 2020 was marginally lower by 0.3% at $1.104 billion compared to the $1.107 billion reported in the same period in 2019 due to the generally lower trade activities globally mainly as a result of the lockdown restrictions imposed by most governments to try to address the rising infection rate of the COVID-19 virus.
This has however been partially tapered by the contribution of ICTSI Rio; tariff adjustments and new services at certain terminals.
Excluding contribution of ICTSI Rio, consolidated organic gross revenues would have decreased by three percent in the first nine months of 2020. For the third quarter of 2020, gross revenues increased seven percent from $355.6 million to $379.3 million.