MANILA-BASED global port operator International Container Terminal Services Inc. (ICTSI) reported a 34 percent surge in consolidated net income for the first six months of 2024 to $461.97 million (P26.5 billion) from $348.1 million (P19.97 billion) a year ago, backed by the strong performance of its diverse international portfolio.
“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 Razon Jr. said.
Revenue rose 13 percent year-on-year to $1.32 billion, while earnings before interest, taxes, depreciation and amortization (Ebitda) expanded 19 percent to $865 million.
“We have a robust balance sheet and cash generation in strong with free cash flow up 24 percent to $602 million, which means we have significant headroom to invest for future growth,” Razon said in a statement.
While acknowledging the need for vigilance amid continuing economic and geopolitical uncertainties, Razon said ICTSI has “a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders.”
January to June throughput edged up 1.0 percent to 6.31 million twenty-foot equivalent units (TEUs) from last year’s 6.28 million TEUs 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. in Ecuador, the impact of expiration of the concession contract at PICT (Pakistan International Container Terminal Ltd.) in Karachi, Pakistan, and the deconsolidation of OJA (PT PBM Olah Jasa Andal) in Jakarta, Indonesia.”
Consolidated cash operating expenses grew 7 percent to $349.43 million due to “volume-driven increases in operating expenses” and increases related to the growth in revenue generating ancillary activities and non-containerized general cargo in certain terminals, among other factors.
Capital expenditures (capex) in the period reached $185.72 million and was used mainly for ongoing terminal expansions in Mexico, Brazil, the Philippines, Democratic Republic of Congo, and Indonesia.
For the second quarter, ICTSI said revenue from port operations jumped 15 percent to $684 million; Ebitda grew 20 percent to P451.2 million; and net income attributable to equity holders rose 32 percent to $210.7 million.
Capex for the full year is estimated at $450 million, including $60 million of capex carried over from 2023.
This will be used mainly to complete terminal expansions here and abroad; pay the last tranche of concession extension-related expenditures in Madagascar; develop its recently acquired terminal in Iloilo; equipment acquisitions and upgrades; and other maintenance requirements.
ICTSI operates in six continents as a developer, manager, and operator of container terminals in the 50,000 to 3.5 million TEUs per year range.
On Monday, ICTSI shares climbed P7.20, or 2.01 percent, to P365 each amid a 0.52 percent downturn for the benchmark Philippine Stock Exchange index.
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