ICTSI 1H2024 Net Income up 34% to USD420.55M driven by continued strong performance from its organic terminals; Recurring Net Income grew 24% to USD401.69M

  • Throughput increased 1% to 6.31 million TEUs
  • Revenues grew 13% to USD1.32 billion
  • EBITDA expanded 19% to USD864.99 million
  • Diluted EPS rose 36% to USD0.200

Enrique K. Razon Jr., 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.  Our revenue increased by 13 percent to USD1.32 billion and EBITDA and net income rose to record highs of USD864.99 million and USD420.55 million, respectively.”

“We have a robust balance sheet and cash generation is strong with free cash flow up 24 percent to USD602 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.”

International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the first half of 2024 posting revenue from port operations of USD1.32 billion, an increase of 13 percent from the USD1.16 billion reported for the first six months of 2023; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of USD864.99 million, 19 percent higher than the USD728.88 million generated in the same period last year; and net income attributable to equity holders of USD420.55 million, 34 percent more than the USD313.80 million earned in the first half of 2023 primarily due to higher operating income, partially tapered by increase in interest on loans and lease liabilities related to concession renewal. Diluted earnings per share increased 36 percent to USD0.200 in 2024 from USD0.147 in 2023.

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 USD592.73 million to USD684.02 million; EBITDA was 20 percent higher at USD451.23 million from USD374.68 million; and net income attributable to equity holders was at USD210.67 million, 32 percent more than the USD159.19 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.  Diluted earnings per share for the second quarter of 2023 and 2024 was at USD0.075 and USD0.101, respectively.

ICTSI handled consolidated volume of 6,312,163 twenty-foot equivalent units (TEUs) in the six months ended June 30, 2024, 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. 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.  For the quarter ended June 30, 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 USD1.32 billion from USD1.16 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 Mexican Peso (MXN)-based revenues, and growth in general cargo activities in certain terminals. This was partially reduced by volume-driven decrease in revenues at certain terminals; the impact of expiration of the concession contract at PICT in Karachi, Pakistan; and unfavorable translation impact mainly of the depreciation of Nigerian Naira (NGN)- and Philippine Peso (PHP)- based revenues at ICTSI Nigeria in Port of Onne, River State, Nigeria and Philippine terminals, respectively.  Excluding 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.

Consolidated cash operating expenses in the first six months of 2024 was seven percent higher at USD349.43 million compared to USD325.85 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.  Excluding impact of new and discontinued businesses, consolidated cash operating expenses would have increased by 10 percent.

Consolidated EBITDA for the first six months of 2024 increased 19 percent to USD864.99 million from USD728.88 million in 2023.  Consequently, EBITDA margin expanded to 65 percent from 63 percent in the same period in 2023.

Consolidated financing charges and other expenses increased two percent to USD93.92 million from USD91.70 million in 2023 mainly due to higher average loan balance and the impact of the deconsolidation of OJA, offset by the impairment of goodwill attributed to PICT in 2023.

Capital expenditures, excluding capitalized borrowing costs, amounted to USD185.72 million for the first six months of 2024.  These were mainly for the ongoing expansions at CMSA in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in Philippines, ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.  The Group’s estimated capital expenditures for 2024, which includes USD60 million of capex carried forward from 2023, is approximately USD450 million. The estimated capital expenditure 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.

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.

 

 

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