International Container Terminal Services Inc. (ICTSI) said it expects to spend $450 million in capital spending for the year, 33.84 percent higher than the $336.32 million actual spending last year.
The company said the planed capex will be utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, 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.
This follows after the company reported profit last year of $511.53 million, lower by 17 percent from $618.46 million the prior year. Sales grew 6 percent to $2.39 billion from $2.24 billion.
The company said the decline in profit is attributable to a one-time impairment of goodwill from the acquisition of Pakistan International Container Terminal (PICT) and increases in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in net loss of joint ventures.
“This was partially tapered by higher operating income and interest earned from short-term investments and deposits; and lower COVID-19-related costs,” ICTSI said.
“Excluding the impairment of goodwill attributed to PICT and other non-current assets, net income attributable to equity holders would have grown seven percent to $676.83 million,” it added.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was at $1.51 billion, up 7 percent from $1.41 billion in 2022.
ICTSI said it handled 12.75 million twenty-foot equivalent units (TEUs) of containers in 2023, 4 percent higher than the 12.22 million TEUs in 2022. The company said it realized higher throughput in its operations after the consolidation of the Manila North Harbour Port Inc. (MNHPI) in Manila, Philippines, as well as improvement in trade activities and new services at certain terminals.
This was despite the expiration of concession contract at PICT in Karachi, Pakistan; cessation of cargo handling operations at Makassar Terminal Services (MTS) in Makassar, Indonesia and Davao Integrated Port and Stevedoring Services Corp. (DIPSSCOR) in Davao; and slowdown in trade activities at certain terminals.
“Excluding the contribution of MNHPI, PICT, MTS and DIPSSCOR, consolidated volume would have increased by two percent,” the company said.
“I am proud of the group’s performance in 2023. In the past year, the group delivered industry outperformance, illustrating the strength of its diversified portfolio and operating strategy as well as our financial discipline. While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities as we continue to invest in new and existing terminals. We have a stronger platform than ever to grow, to drive market share and continue our successful track record as a responsible business that creates long term sustainable value for all its stakeholders,” meanwhile said Enrique K. Razon, ICTSI chairman.