Billionaire Enrique K. Razon Jr.'s International Container Terminal Services, Inc. (ICTSI) reported that its net income attributable to equity holders rose by 36 percent to $209.88 million in the first quarter of 2024 from $154.61 million last year.
In a statement on May 6, the company attributed the income growth to "higher operating income, interest and nonrecurring income from settlement of legal claims, and lower equity share in net loss of joint ventures; partially tapered by increases in depreciation and amortization, interest on loans and lease liabilities, and the nonrecurring impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA)."
ICTSI posted an 11 percent growth in revenue from port operations to $637.65 million from $572.25 million in 2023, because of higher revenues from container mix changes, ancillary services, tariff adjustments, and volume growth in terminals like Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico.
Meanwhile, the company also saw a 17 percent higher Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) this year to $413.76 million from $354.20 million.
For the first quarter, it handled a consolidated volume of
3.09 million twenty-foot equivalent units (TEUs) in the first quarter of 2024, which is slightly lower than the 3.1 million TEUs in 2023, due to the "expiration of the concession contract at Pakistan International Container Terminal (PICT) in Karachi, Pakistan, deconsolidation of OJA in Jakarta, Indonesia, termination of cargo handling operations at PT Makassar Terminal Services (PT MTS) in Makassar, Indonesia, and decrease in volume in Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador. "
"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," highlighted Razon, ICTSI chairman and president.
“Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46 percent during the quarter further reinforcing our ability to invest and capitalize on growth opportunities," he added.
Cash operating expenses in the quarter were also up by six percent at $172.48 million in 2024 to US$163.14 million for the same period in 2023 due to "government-mandated and contracted salary rate adjustments (including benefits), various repairs and maintenance of port equipment" among other reasons.
Moreover, capital expenditures, excluding capitalized borrowing costs, for the quarter was $67.94 million, used for expansions at CMSA in Mexico, ICTSI Rio in Brazil, certain Philippine terminals, ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.
“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," said Razon.