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International Container Terminal Services, Inc.’s net income grew 33.2% in the first quarter of 2024 to $229.8 million year-on-year
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Revenue from port operations reached $637.65 million, up 11% mainly due to higher revenues from changes in the container mix, ancillary services, tariff adjustments, and volume growth in certain terminals
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For the first three months of the year, ICTSI handled a consolidated volume of 3.090 million TEUs, down from 3.102 TEUs recorded in the same period in 2023
International Container Terminal Services, Inc.’s (ICTSI) net income grew 33.2% in the first quarter of 2024 to $229.8 million from $172.6 million in the same period last year.
Revenue from port operations reached $637.65 million, an increase of 11% from the $572.25 million reported last year while earnings before interest, taxes, depreciation and amortization jumped 17% year-on-year to $413.76 million.
Net income attributable to equity holders rose 36% to $209.88 million in the first quarter primarily due to higher operating income, interest and nonrecurring income from settlement of legal claims, and lower equity share in net loss of joint ventures.
“Our international portfolio performed exceptionally well, and the group continues to benefit from geographic diversification spanning 19 countries which has enabled us to deliver growth, despite regional economic headwinds,” ICTSI chairman and president Enrique K. Razon, Jr. said in a statement.
“We look to the future with confidence, and with our highly disciplined business model we remain strongly positioned to continue to deliver financially and operationally for all our stakeholders,” Razon added.
The increase in port revenue was mainly due to higher revenues from changes in the container mix, ancillary services, tariff adjustments, and volume growth in certain terminals.
For the first three months of the year, ICTSI handled a consolidated volume of 3.090 million twenty-foot equivalent units (TEUs), down from 3.102 TEUs recorded in the same period in 2023.
ICTSI said volume growth mainly from new services and improvement in trade activities at certain terminals was offset by the impact of expiration of the concession contract at Pakistan International Container Terminal in Karachi, Pakistan; deconsolidation of PT PBM Olah Jasa Andal in Jakarta, Indonesia; termination of cargo-handling operations at PT Makassar Terminal Services in Makassar, Indonesia; and decrease in volume in Contecon Guayaquil S.A. in Guayaquil, Ecuador.
Excluding the impact of discontinued operations in Pakistan and Indonesia, the group’s consolidated volume would have increased by 5%.
In terms of segments, container volumes handled in its Asia operations increased by 3.6% to 1.678 million TEUs while volume from the Americas segment grew 2.7% to 857,663 TEUs.
Volume from the Europe, Middle East and Africa segment, meanwhile, decreased 14.4% to 554,435 TEUs.
Consolidated cash operating expenses in the first quarter of 2024 were 6% higher year-on-year at $172.48 million, driven by government-mandated and contracted salary rate adjustments, various repairs and maintenance of port equipment, and unfavorable foreign exchange effect.
Capital expenditures in the first quarter of this year amounted to $67.94 million.
These were mainly for ongoing expansions at Contecon Manzanillo S.A. in Mexico, ICTSI Rio in Brazil, certain Philippine terminals, ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo (DRC), and East Java Multipurpose Terminal (EJMT) in Indonesia.
This year’s capital expenditures, which includes $60 million of capex carried forward from 2023, is approximately $450 million.
READ: ICTSI 2024 capex set at $450M
The estimated capital expenditure will be utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, Philippines and DRC; pay the last tranche of concession extension-related expenditures in Madagascar; develop the recently acquired terminal in Iloilo; equipment acquisitions and upgrades; and for capital maintenance requirements.
As at May 6, 2024, ICTSI is involved in 32 terminal operations, including concessions and port development projects in 19 countries worldwide.
