International Container Terminal Services Inc. (ICTSI) said it closed the first nine months of the year with a profit growth of 31 percent to $632.58 million from $484.54 million the prior year, attributing the growth to “higher operating income, partially tapered by increase in interest on loans and lease liabilities related to concession renewal, and higher depreciation and amortization.”
The Enrique Razon, Jr.-controlled terminal operator said it grew its topline by 14 percent to $2.01 billion from $1.76 billion last year.
This translates to an earnings per share of $0.303, growing by a third — 33 percent — from $0.227 in 2023.
“Earnings before interest, taxes, depreciation and amortization (EBITDA) was at $1.32 billion, 19 percent higher than the $1.11 billion generated in the same period last year,” the company said.
“Our strategy is centered on our international portfolio, and its diversity has enabled us to capitalize on growth opportunities globally. Our cash flow and balance sheet remain strong with free cash flow up by 18 percent to $849 million demonstrating we are financially robust and able to invest in our new and existing projects to retain our position as the world’s largest independent port operator. We are confident in our outlook and well-positioned to deliver future growth,” meanwhile said Razon, ICTSI chairman.
Razon said the company’s bottomline and EBITDA are “both new records for ICTSI.”
ICTSI said its profit for the period 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.
“Excluding the impact of nonrecurring income and charges, net income attributable to equity holders would have grown 24 percent to $613.72 million,” ICTSI told regulators.
For the third quarter alone, the company posted a profit of $212.03 million, up 24 percent from $170.74 million, over revenues of $691.70 million, up 16 percent from $594.88 million.
EBITDA was at $451.51 million, 19 percent higher that last year’s $377.85 million.
The first three quarters of 2024 had ICTSI handling 9.6 million twenty-foot equivalent units (TEUs) of cargoes, up two percent from 9.45 million TEUs in 2023.
“The two percent consolidated volume growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and contribution of Visayas Container Terminal (VCT) in Iloilo, Philippines; 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.
“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 five percent,” it added. For the quarter ended September 30, 2024, total consolidated throughput was four percent higher at 3,291,964 TEUs compared to 3,176,076 TEUs in 2023.
