ICTSI 2023 net income down 14% from 2022

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NorthPort in Manila North Harbor. Photo from ICTSI.
  • International Container Terminal Services, Inc. reported a net income of $581.13 million in 2023, a 14% decline from the $677.47 million posted in 2022
  • EBITDA grew 7% year-on-year to $1.51 billion in 2023 while net income attributable to equity holders was down 17% year-on-year
  • For 2023, ICTSI handled a consolidated volume of 12.749 million TEUs, 4% higher than the 12.216 million TEUs handled in 2022
  • Gross revenues from port operations rose 6% to $2.39 billion in 2023 from $2.24 billion in 2022
  • The group’s estimated capital expenditures for 2024, which includes $60 million of capex carried forward from 2023, is approximately $450 million

International Container Terminal Services, Inc.’s (ICTSI) 2023 net income is down 14% to $581.13 million from the previous year’s $677.47 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 7% year-on-year to $1.51 billion in 2023 while net income attributable to equity holders was down 17% year-on-year to $511.53 million primarily due to non-recurring and non-cash impairment of goodwill attributed to the acquisition of Pakistan International Container Terminal (PICT) and other noncurrent assets; and increases in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in net loss of joint ventures, the company said in a statement.

Gross revenues from port operations grew 6% to $2.39 billion in 2023 from $2.24 billion in 2022 mainly due to the contribution of Manila North Harbor Port, Inc. (MNHPI); tariff adjustments, volume growth and higher revenues from ancillary services and general cargo business at certain terminals; and favorable translation impact at Contecon Manzanillo S.A. (CMSA) in Mexico, ICTSI Iraq, Tecon Suape S.A. (TSSA), and ICTSI Rio in Brazil.

“I am proud of the Group’s performance in 2023; the efforts of ICTSI’s colleagues around the world have resulted in revenues increasing by six percent to $2.39 billion and record EBITDA of $1.51 billion. In the past year, the Group delivered industry outperformance, illustrating the strength of its diversified portfolio and operating strategy as well as our financial discipline,” ICTSI chairman and president Enrique K. Razon, Jr. said.

While the geopolitical backdrop remains complex, Razon said 2024 “is set to be ripe with opportunities as we continue to invest in new and existing terminals.”

“We have a stronger platform than ever to grow, to drive market share and continue our successful track record as a responsible business that creates long term sustainable value for all its stakeholders,” Razon added.

For 2023, ICTSI handled a consolidated volume of 12.749 million twenty-foot equivalent units (TEUs), 4% higher than the 12.216 million TEUs handled in 2022.

The increase in volume was mainly due to the contribution of MNHPI, improvement in trade activities, and new services at certain terminals. It was, however, tapered by the impact of the expiration of concession contract at PICT in June 2023; cessation of cargo handling operations at Makassar Terminal Services in Indonesia and Davao Integrated Port and Stevedoring Services Corp. in the Philippines; and slowdown in trade activities at certain terminals.

ICTSI’s capital expenditures last year amounted to $336.32 million, mainly for expansionary projects at CMSA, Manila International Container Terminal, Victoria International Container Terminal in Australia, ICTSI DR Congo S.A., ICTSI Rio in Brazil, and ICTSI Nigeria; and the initial development in East Java Multipurpose Terminal (EJMT) in Indonesia.

The group’s estimated capital expenditures for 2024, which includes $60 million of capex carried forward from 2023, is approximately $450 million.

It will be utilized mainly to complete the expansion in Brazil and the development of EJMT and to continue the ongoing expansion in Mexico, the Philippines and the Democratic Republic of Congo. It will also be used to 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.

As of February 28, 2024, ICTSI is involved in 32 terminal operations, including concessions and port development projects, in 19 countries worldwide.