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International Container Terminal Services, Inc reported a 31% increase in net income attributable to equity holders to US$632.58 million in the first nine months of 2024
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Revenue from port operations grew 14% to $2.01 billion
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Consolidated volumes handled rose 2% to 9.604 million TEUs
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Capital expenditures amounted to $298.63 million, 66% of the estimated $450-million capex for the full year
International Container Terminal Services, Inc. (ICTSI) reported a net income attributable to equity holders of US$632.58 million in the first nine months of 2024, 31% higher than the $484.54 million earned in the same period last year.
The growth was primarily due to higher operating income, partially tapered by the increase in interest on loans and lease liabilities related to concession renewal, and higher depreciation and amortization, the port operator said in a statement.
“Our strategy is centered on our international portfolio, and its diversity has enabled us to capitalize on growth opportunities globally,” ICTSI chairman and president Enrique K. Razon, Jr. said.
He added: “Our cash flow and balance sheet remain strong with free cash flow up by 18% to $849 million demonstrating we are financially robust and able to invest in our new and existing projects to retain our position as the world’s largest independent port operator. We are confident in our outlook and well-positioned to deliver future growth.”
Revenue from port operations grew 14% in January to September to $2.01 billion from $1.76 billion reported for the same period in 2023.
ICTSI said this was mainly due to volume growth with favorable container mix, tariff adjustments, higher revenues from ancillary services, and growth in general cargo activities in certain terminals.
Earnings before interest, taxes, depreciation and amortization rose 19% to $1.32 billion while net income increased 30% to $694.65 million.
ICTSI handled a consolidated volume of 9.604 million twenty-foot equivalent units (TEUs) in the first nine months of the year, 2% up from the 9.452 million TEUs recorded in the same period in 2023.
The volume growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and contribution of Visayas Container Terminal (VCT) in Iloilo, Philippines. It was, however, offset by the decrease in volume at Contecon Guayaquil S.A. in Guayaquil Ecuador, the impact of expiration of the concession contract at Pakistan International Container Terminal (PICT) in Karachi, Pakistan, and the deconsolidation of PT PBM Olah Jasa Andal in Jakarta, Indonesia.
Excluding the impact of new operations in the Philippines and discontinued operations in Pakistan and Indonesia, ICTSI’s consolidated volume would have increased by 5%.
For the third quarter of the year alone, total consolidated throughput increased 4% to 3.292 million TEUs compared with the 3.176 million TEUs handled in the same period last year.
Consolidated cash operating expenses in the first nine months of 2024 was 8% higher at $529.27 million, mainly due to volume-driven increases in operating expenses, including increases related to the growth in revenue generating ancillary services and general cargo activities in certain terminals, and government-mandated and contracted salary rate adjustments; tapered by continuous cost optimization measures implemented, the impact of the expiration of the concession contract at PICT, and favorable foreign exchange effect at ICTSI Nigeria, Philippine terminals, and Brazil terminals.
Capital expenditures for the first nine months of 2024 amounted to $298.63 million, 66% of the estimated $450 million capex for the full year.
ICTSI said these were mainly for the completion of phase 3A expansion in Contecon Manzanillo S.A. (CMSA) in Mexico, the berth extension in ICTSI Rio in Brazil, the initial development phases in VCT, and East Java Multipurpose Terminal in Indonesia.
Also included were the ongoing expansions at Manila International Container Terminal in Philippines, and ICTSI DR Congo S.A. in Democratic Republic of Congo which are expected to continue on into the next quarter together with the initial disbursement for phase 3B expansion in CMSA in Mexico; payment of the last tranche of concession extension related expenditures in Madagascar; equipment acquisitions and upgrades, and for capital maintenance requirements.
