International Container Terminal Services, Inc. (ICTSI) said profit for the first half of the year grew 34 percent to $420.55 million from $313.80 million last year.
Revenues reached $1.32 billion, up 13 percent from $1.16 billion last year.
ICTSI handled consolidated a total of 6.31 million twenty-foot equivalent units (TEUs) of containers for the period, marginally higher than the 6.28 million TEU last year.
“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 PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia,” the company said.
“Excluding the impact of new operations in the Philippines and discontinued operations in Pakistan and Indonesia, the croup’s consolidated volume would have increased by six percent,” it added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) hit $864.99 million, up 19 percent from $728.88 million last year.
“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,: said Enrique Razon Jr., ICTSI chairman.
“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,” he added.
Net income attributable to equity holders in the first half of 2024 included nonrecurring 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, net income attributable to equity holders would have grown 24 percent to USD401.69 million.
For the quarter ended June 30, 2024, revenue from port operations increased 15 percent from $592.73 million to $684.02 million; EBITDA was 20 percent higher at $451.23 million from $374.68 million; and net income attributable to equity holders was at $210.67 million, 32 percent more than the $159.19 million in the same period in 2023.
Excluding the impairment of goodwill attributed to PICT in 2023, net income attributable to equity holders would have grown 24 percent.
Consolidated cash operating expenses in the first six months of 2024 was seven percent higher at $349.43 million compared to $325.85 million for the same period in 2023.
The increase in cash operating expenses was mainly due to volume-driven increases in operating expenses, including increases related to the growth in revenue generating ancillary activities and non-containerized general cargo in certain terminals, government-mandated and contracted salary rate adjustments (including benefits) and unfavorable foreign exchange effect mainly of MXN-based expenses at CMSA; tapered by continuous cost optimization measures implemented, the impact of the expiration of the concession contract at PICT, and favorable foreign exchange effect mainly of NGN- and PHP- based expenses at ICTSI Nigeria and Philippine terminals, respectively.
ICTSI is a leading global developer, manager and operator of container terminals in the 50.0 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.
