RAZON-LED International Container Terminal Services, Inc. (ICTSI) saw its second-quarter net income attributable to equity holders decline by 4% to $53.8 million due to lower operating income, increase in interest on concession rights payable, and expenses related to the coronavirus pandemic.
The second-quarter net income is 9.7% lower than the previous quarter’s $59.6 million.
In a regulatory filing on Thursday, the listed firm said the decrease was “partially tapered by a reduction in net loss at its greenfield terminal in Melbourne, Australia, and lower equity in net loss of joint ventures.”
The global port developer and operator saw its gross revenues decline by 5% to $348.5 million from $368 million. The amount is 7.3% lower than the $375.8 million earned in the first three months of the year.
ICTSI said trade activities declined during the period due to the impact of the coronavirus pandemic and government- imposed lockdowns.
The company’s consolidated throughput for the quarter dropped 11% to 2,290,779 twenty-foot equivalent units (TEUs) from last year’s 2,563,244 TEUs.
In the first quarter, ICTSI reported a consolidated throughput of 2,508,986 TEUs, driven by the contribution of its new terminal in Rio de Janeiro in Brazil and new services at certain terminals.
“Capital expenditures (capex), excluding capitalized borrowing costs, for the six months ended June 30, amounted to $91.2 million,” ICTSI said.
The company has cut its capex guidance for 2020 to about $160 million. It said it intends to use the amount for its expansion projects this year.
“Our primary focus and central to our decision making since the start of the coronavirus outbreak has been, and remains, the safety and well-being of our employees, customers and our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement.
He said the company took immediate action to preserve cash and reduced its capital expenditure in what he described as a period of “significantly reduced economic and international trade activity, brought about by protracted lockdown periods for many countries around the world.”
“These prudent measures taken early on, our diversified portfolio and maintaining a very high level of service to our clients has helped cushion the impact from the pandemic and generated a resilient and better-than-expected performance,” Mr. Razon said.
He expects the second half of the year to remain challenging for the company because of uncertainties.
“However, ICTSI is well-positioned to navigate through these uncertain times, underpinned by our 32 terminals diversely located around the world, the resilience of our business model, agility and a strong capital structure,” Mr. Razon said.
Shares in ICTSI on Thursday closed 0.52% higher at P97.50 apiece. — Arjay L. Balinbin