International operations key to consistent ICTSI

International operations key to consistent ICTSI | Daily Tribune

Global port operator International Container Terminal Services Inc.’s (ICTSI) first-half profit grew 34 percent to $420.55 million driven by the consistently strong performance of its international terminals.

Recurring net income grew 24 percent to $401.69 million.

Among the significant company results during the period are: Throughput increased 1 percent to 6.31 million twenty-foot equivalent units (TEUs); Revenues grew 13 percent to $1.32 billion; Earnings before interest, taxes, depreciation and amortization (EBITDA) expanded by 19 percent to $864.99 million; and diluted earnings per share rose 36 percent to $0.20.

ICTSI chairperson and president Enrique K. Razon Jr., said the strong first-half performance, yet again demonstrated the strength of ICTSI’s diversified international portfolio and continued delivery of strategic initiatives.

“Revenue increased by 13 percent to $1.32 billion and EBITDA and net income rose to record highs of $864.99 million and $420.55 million, respectively,” he added.

“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,” according to Razon.

“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.”

Net income attributable to equity holders in the first half included nonrecurring income from the settlement of legal claims at ICTSI Oregon and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia while the first half of 2023 included the impairment of goodwill attributed to Pakistan International Container Terminal.

Excluding the impact of nonrecurring income and charges, net income attributable to equity holders would have grown 24 percent to $401.69 million.

For the second quarter, 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.

PICT weighs down profit

Excluding the impairment of goodwill attributed to PICT in 2023, net income attributable to equity holders would have grown 24 percent. Diluted earnings per share for the second quarter of 2023 and 2024 were at $0.075 and $0.101, respectively.

ICTSI handled a consolidated volume of 6,312,163 TEUs in the six months ended 30 June, marginally higher than the 6,275,837 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.

Without 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. For the quarter ended 30 June 2024, total consolidated throughput was two percent higher at 3,222,044 TEUs compared to 3,173,732 TEUs in 2023.

Gross revenues from port operations for the first half of 2024 grew 13 percent to $1.32 billion from $1.16 billion reported in the same period in 2023 mainly due to higher revenues from ancillary services, tariff adjustments and volume growth with favorable container mix, in certain terminals, favorable translation impact of the appreciation of the Mexican peso-based revenues, and growth in general cargo activities in certain terminals.

This was partially reduced by a volume-driven decrease in revenues at certain terminals; the impact of the expiration of the concession contract at PICT in Karachi, Pakistan; and the unfavorable translation impact mainly of the depreciation of the Nigerian Naira (NGN) and the Philippine peso-based revenues at ICTSI Nigeria in Port of Onne, River State, Nigeria and Philippine terminals, respectively.

Excluding the impact of new businesses in Philippines and Brazil; and discontinued businesses in Pakistan and Indonesia, the Group’s consolidated gross revenues would have increased by 15 percent.