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International Container Terminal Services, Inc.’s net income attributable to equity holders soared 34% in the first half of 2024 from the same period last year
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Revenue from port operations grew 1% mainly due to higher revenues from ancillary services, tariff adjustments and volume growth with favorable container mix, among others
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ICTSI handled a consolidated volume of 6.312 million TEUs in the first half of 2024, marginally higher than the 6.276 million TEUs handled in the same period in 2023
International Container Terminal Services, Inc.’s (ICTSI) net income attributable to equity holders soared 34% to US$420.55 million in the first half of 2024 from $313.80 million in the same period last year.
Revenue from port operations reached $1.32 billion, a 13% jump from $1.16 billion year-on-year, mainly due to higher revenues from ancillary services, tariff adjustments and volume growth with favorable container mix, in certain terminals, favorable translation impact of the appreciation of Mexican peso-based revenues, and growth in general cargo activities in certain terminals.
Earnings before interest, taxes, depreciation and amortization (EBITDA) advanced 19% year-on-year to $864.99 million. Net income attributable to equity holders soared 34% to $420.55 million primarily due to higher operating income, partially tapered by increase in interest on loans and lease liabilities related to concession renewal.
“We’ve delivered a strong first half performance, yet again demonstrating the strength of ICTSI’s diversified international portfolio and continued delivery of our strategic initiatives,” ICTSI chairman and president Enrique K. Razon, Jr. said in a statement.
“While we remain vigilant of continuing economic and geopolitical uncertainty, we have a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders,” Razon added.
ICTSI handled a consolidated volume of 6.312 million twenty-foot equivalent units (TEUs) in the first half of 2024, marginally higher than the 6.276 million TEUs handled in the same period in 2023.
The 1% consolidated volume growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, offset by the decrease in volume at Contecon Guayaquil S.A. (CGSA) in Ecuador, the impact of expiration of the concession contract at Pakistan International Container Terminal last year, 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, the group’s consolidated volume would have increased by 6%. For the second quarter alone, consolidated throughput rose 2% to 3.222 million TEUs from 3.174 million TEUs in the second quarter of 2023.
Consolidated cash operating expenses in the first six months of the year was 7% higher at $349.43 million, mainly due to volume-driven increases in operating expenses, including increases related to the growth in revenue generating ancillary activities and non-containerized general cargo in certain terminals, government-mandated and contracted salary rate adjustments (including benefits) and unfavorable foreign exchange effect.
Capital expenditures for the first half of the year amounted to $185.72 million, mainly for the ongoing expansions at Contecon Manzanillo S.A. in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. in Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.
The group’s estimated capex for 2024, which includes $60 million carried forward from 2023, is approximately $450 million. The estimated capex will be utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, the Philippines and Democratic Republic of Congo; pay the last tranche of concession extension related expenditures in Madagascar; develop the recently acquired terminal in Iloilo in the Philippines; equipment acquisitions and upgrades; and for capital maintenance requirements.
