International Container Terminal Services Inc. (ICTSI), the ports business of richest Filipino Enrique K. Razon Jr., reported a 34 percent jump in consolidated net income to record $420.55 million in the first half of 2024 from $313.8 million in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), Razon, ICTSI chairman and president, said “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’ gross revenues increased by 13 percent to $1.32 billion from $1.16 billion in the first half of 2023 while and EBITDA rose 19 percent to hit a record high of $864.99 million in the first semester of the year from $728.88 billion in 2023
“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. 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,” Razon said.
ICTSI noted profits rose primarily due to higher operating income, partially tapered by increase in interest on loans and lease liabilities related to concession renewal.
Attributable net income in the first half of 2024 included non-recurring income from settlement of legal claims at ICTSI Oregon and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia whilst the first half of 2023 included the impairment of goodwill attributed to Pakistan International Container Terminal (PICT).
Excluding the impact of nonrecurring income and charges, attributable net income would have grown 24 percent to $401.69 million.
ICTSI handled consolidated volume of 6.31 million twenty-foot equivalent units (TEUs) in the six months ended June 30, 2024, marginally higher than the 6.28 million TEUs 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.
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.