Despite the pandemic slowing economic activities everywhere, international port operator International Container Terminal Services, Inc. (ICT) is able to maintain its revenue level. ICT generates revenue for the nine-month period ending September 30, 2020 of US$1.1 Billion. The said revenue is at par with last year’s.
ICT’s financial discipline allowed it to lower operating expenses by US$11.3 Million. The lower operating expenses allowed ICT to improve by 2% its net income to US$210.4 Million.
For the nine-month period of 2020 ICT generated cash from operations of US$568.8 Million. Although ICT generated more cash from operations as compared to last year of the same period, it limited its spending for investment and capital expenditures to just US$154 Million.
This allowed ICT to leave more cash generated from operations for dividend distributions and debt payments.
ICT could have used the free cash flows for debt repayment but instead preferred to refinance debts at lower rates. Thus, allowing ICT to boost its cash balance to US$567.6 Million. The cash balance is an increase of US$332.7 Million from the cash balance at the start of the year.
In summary ICT is fortifying its financials as the impact of the COVID-19 pandemic continues to evolve. So far ICT manages to be resilient in this pandemic, however a conservative ICT is expecting the pandemic to have material impact on its financial results for the rest of 2020 and even periods thereafter.
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Disclaimer and Disclosure: This is an independent analysis for discussion purposes with the aim of giving stock traders and investors an independent viewpoint. Accuretti Systems Inc. in day-to-day trading may have owned, or is considering buying or disposing, the shares of the companies mentioned in this commentary.