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Ricky Razon-Led ICTSI Bucks Effects of Pandemic, Nets P4.96 Billion Income in 2020

It’s the latest project for the global ports operator.
IMAGE Courtesy of Entrepreneur Philippines
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International Container Terminal Services, Inc. (ICTSI) reported that its net income grew one percent to $101.8 million (P4.96 billion) in 2020 from $100.4 million (P4.89 billion) the previous year. The company chaired by billionaire Enrique Razon Jr. credits “higher revenues, lower cash operating expenses resulting from continuous group-wide cost reduction and optimization measures, positive contribution of a new terminal in Rio de Janeiro, Brazil, and lower equity in net loss of joint ventures” for the uptick.

Recurring net income grew nine percent to $282.1 million (P13.7 billion) in 2020 from $259.1 million (P12.6 billion) in 2019.

In total, revenues from port operations stood at $1.51 billion (P73 billion) in 2020, up two percent from the $1.481 billion (P72 billion) in 2019.

“ICTSI has delivered a positive performance in very challenging circumstances and it highlights not only the significant dedication and commitment of our colleagues who have performed strongly throughout the pandemic but also the agility and strength of our business,” Razon said. “We were swift to take action at the start of the pandemic to initiate cost reduction, reduce capital expenditures, and later seized opportunities to lengthen our debt maturities at lower rates. At the same time, we stepped up our social community support and increased health and safety measures at all our ports to ensure that we all remain resilient in these extraordinary times. These actions have helped us to navigate a severe weakening of demand at some of our key terminals around the world.”

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The company also said its 2021 capital expenditure budget is approximately $250 million (P12.6 billion) which will be “utilized mainly for the completion of the expansion project at MICT (Manila International Container Terminal) in Manila, Philippines, the ongoing yard expansion at IDRC in Matadi, Democratic Republic of Congo; the new expansion project at VICT in Melbourne, Australia; equipment acquisitions and upgrades; and for various maintenance requirements.”

On Thursday, ICTSI also announced it would develop and operate a multi-purpose terminal in Nigeria, the company disclosed on Thursday. 

The company inked the lease agreement  through its Nigerian subsidiary International Container Terminal Services Nigeria Ltd. (ICTSNL) for the development and operation of the terminal in the Port of Onne in Rivers State, Nigeria.

"ICTSNL will further develop and equip Berths 9, 10 and 11 of the Federal Ocean Terminal of the Onne Port Complex in the same location," the company said. "The multipurpose terminal will be designed to handle containers as well as general cargo, including project, heavy lift and roll-on/roll-off cargoes."

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The Port of Onne is located in the Gulf of Guinea in East Nigeria and has earned its reputation as a modern and efficient gateway at the center of Africa’s largest oil production region, according to the company.

ICTSI is a multinational port management company based in Manila with operations in nearly 20 countries, including Australia, Indonesia, Brazil, China, Mexico, Congo, Pakistan, Croatia, and many others. It was founded in 1987 in Razon, who is one of the richest individuals in the Philippines, with a net worth of nearly $5 billion, according to Forbes magazine.

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Paul John Caña
Associate Editor, Esquire Philippines
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