ICTSI 2024 Net Income rises 66% to US$849.80M

Manila International Container Terminal

• Recurring Net Income 23% higher at US$830.94 million
• Throughput increased 2% to 13.07 million TEUs
• Revenues grew 15% to US$2.74 billion
• EBITDA up 18% to US$1.78 billion
• Diluted EPS rose 72% to US$0.407

Enrique K. Razon Jr., ICTSI Chairman and President said: “The Group has delivered another set of excellent results, another year of record EBITDA at US$1.78 billion and our highest net income in history of US$849.8 million. Pleasingly, revenues increased by 15 percent US$2.74 billion and our cash flow and balance sheet remain strong with free cash flow up by 12% to US$1.08 billion, giving us the financial strength and flexibility to pursue new opportunities and invest in existing projects.” 

“While we continue to be mindful of the complex geopolitical backdrop, these results demonstrate the strength and resilience of our globally diversified origin and destination portfolio. I would like to thank our ICTSI colleagues all over the world for their unwavering focus, hard work and dedication in delivering another outstanding year.”

International Container Terminal Services, Inc. (ICTSI) today reported audited consolidated financial results for 2024 posting revenue from port operations of US$2.74 billion, an increase of 15 percent from the US$2.39 billion reported for the same period in 2023; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$1.78 billion, 18 percent higher than the US$1.51 billion generated in the same period last year; and net income attributable to equity holders of US$849.80 million, 66 percent more than the US$511.53 million earned in 2023 primarily due to higher operating income and interest earned from the extra-ordinary high cash balance, partially tapered by increase in interest on loans and lease liabilities related to concession renewal, and higher depreciation and amortization. Diluted earnings per share increased 72 percent to US$0.407 in 2024 from US$0.237 in 2023. 

The increases in net income attributable to equity holders for 2024 compared to 2023 included nonrecurring income from settlement of legal claims at ICTSI Oregon in Q1 2024 and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA), Jakarta, Indonesia. The nonrecurring expenses in 2023 included the charge on goodwill attributed to Pakistan International Container Terminal (PICT), Karachi, Pakistan and other noncurrent assets. Excluding the impact of nonrecurring income and charges in 2023 and 2024, net income attributable to equity holders would have grown 23 percent to US$830.94 million.

ICTSI handled consolidated volume of 13,066,949 twenty-foot equivalent units (TEUs) in 2024, two percent higher than the 12,749,214 TEUs handled in 2023. The growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and the contribution of Visayas Container Terminal (VCT), the new terminal in Iloilo, Philippines; partially offset by the decrease in volume at Contecon Guayaquil S.A. (CGSA), Guayaquil, Ecuador, the impact of expiration of the concession contract at PICT, Karachi, Pakistan, and the deconsolidation of OJA, 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 five percent. 

Gross revenues from port operations in 2024 grew 15 percent to US$2.74 billion from US$2.39 billion reported in 2023 mainly due to volume growth with a favorable container mix, tariff adjustments, higher revenues from ancillary services, and growth in general cargo activities in certain terminals. This was partially reduced by volume-driven decreases in revenue at CGSA, Guayaquil, Ecuador; the impact of expiration of the concession contract at PICT, Karachi, Pakistan, the deconsolidation of OJA, Jakarta, Indonesia; and an unfavorable foreign exchange translation impact mainly from the depreciation of Brazilian Real (BRL)-, Nigerian Naira (NGN)-, Mexican Peso (MXN)-,and Philippine Peso (PHP)- based revenues.

Consolidated cash operating expenses in 2024 were 10 percent higher at US$727.25 million compared to US$662.70 million in 2023. The increase in cash operating expenses was mainly due to higher volumes, including increases related to the growth in revenue generating ancillary services and general cargo activities in certain terminals, and government-mandated and contracted salary rate adjustments (including benefits). This was tapered by continuous cost optimization measures, the impact of the expiration of the concession contract at PICT, and favorable foreign exchange effects mainly of BRL-, NGN-, and PHP- based expenses.

Consolidated EBITDA in 2024 increased 18 percent to US$1.78 billion from US$1.51 billion in 2023. Consequently, the EBITDA margin expanded by two percentage points to 65 percent from 63 percent. 

Consolidated financing charges and other expenses decreased 44 percent to US$186.05 million from US$329.89 million in 2023 mainly due to the nonrecurring and non-cash charge on goodwill attributed to PICT and other non-financial assets in 2023, partially offset by higher interest and financing charges on new loans in 2024.

Capital expenditures, excluding capitalized borrowing costs, amounted to US$517.14 million in 2024. These were mainly utilized for the completion of phase 3A expansion in Contecon Manzanillo S.A. (CMSA), Manzanillo, Mexico, the berth extension in ICTSI Rio, Brazil, new equipment and development in the recently acquired terminal in VCT, Iloilo, Philippines and the new container terminal in East Java Multipurpose Terminal (EJMT), Lamongan, Indonesia. Included in the 2024 capital expenditures as well were the ongoing expansions at Manila International Container Terminal (MICT), Philippines and ICTSI DR Congo S.A. (IDRC), Matadi, Democratic Republic of Congo (DRC), together with the payment of the last tranche of concession extension related expenditures in Madagascar, equipment acquisitions and upgrades, and asset maintenance requirements. In addition, the Group accelerated the phase 3B expansion in CMSA, Manzanillo, Mexico, and went ahead with the initial capital expenditures on the new project in Batangas, Philippines that was announced during the year. Excluding these additional projects, total 2024 capital expenditure would have amounted to US$441.70 million, equivalent to 98 percent of the estimated 2024 budget. 

The Group’s estimated capital expenditures for 2025 is approximately US$580 million. The estimated capital expenditure will be utilized mainly for the continued development of the new project in Batangas, Philippines, phase 3B expansion in CMSA, Manzanillo, Mexico, expansion of MICT, Manila, Philippines, and IDRC, Matadi, DRC; new expansion projects at ICTSI Rio, Brazil and Mindanao Container Terminal, Cagayan de Oro, Philippines; various other equipment acquisitions and upgrades; and maintenance capex. 

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.