International Container Terminal Services Inc. (ICTSI) said Monday net income grew 34 percent in the first half of 2024 on the back of higher operating income.
The port terminal operator led by businessman Enrique Razon Jr. said net income amounted to $420.55 million from January to June this year, up from $313.80 million a year ago.
“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. We have a robust balance sheet and cash generation is strong with free cash flow up 24 percent to $602 million which means we have significant headroom to invest for future growth,” said Razon, who serves as ICTSI chairman and president.
“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,” he said.
The company’s revenue from port operations amounted to $1.32 billion, up 13 percent from $1.16 billion in the same period last year.
ICTSI said excluding the impact of new businesses in Philippines and Brazil and discontinued businesses in Pakistan and Indonesia, the group’s consolidated gross revenues would have increased by 15 percent.
ICTSI handled a consolidated volume of 6.31 million twenty-foot equivalent units (TEUs) in the first six months of the year, higher than 6.27 million TEUs it handled in the same period in 2023.
“The one-percent 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 Guayaquil Ecuador, the impact of expiration of the concession contract at PICT in Karachi, Pakistan and the deconsolidation of OJA in Jakarta, Indonesia,” ICTSI said.
It said 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 six percent.
ICTSI’s consolidated cash operating expenses in the first six months was 7-percent higher at $349.43 million compared to $325.85 million in the same period in 2023.
Capital expenditures (capex), excluding capitalized borrowing costs, amounted to $185.72 million in the first six months. These were mainly for the ongoing expansions at CMSA in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo and East Java Multipurpose Terminal (EJMT) in Indonesia.
The group’s estimated capex for 2024, which includes $60 million of capex carried forward from 2023, is about $450 million.
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, 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.
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