By Francis Allan L. Angelo
International Container Terminal Services, Inc. (ICTSI) reported a substantial 36% increase in net income for the first quarter of 2024, reaching US$209.88 million, up from US$154.61 million during the same period last year.
The performance was driven by robust gains in its international operations across 19 countries, despite facing regional economic challenges.
The company’s Chairman and President, Enrique K. Razon, expressed satisfaction with the quarter’s outcomes, highlighting the exceptional growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), which soared 17% to US$413.76 million.
“Our international portfolio performed exceptionally well, and the Group continues to benefit from geographic diversification,” Razon said.
ICTSI’s revenues from port operations increased by 11% to US$637.65 million, fueled by changes in container mix, ancillary services, tariff adjustments, and volume growth at specific terminals, notably Contecon Manzanillo S.A. (CMSA) in Mexico. The company also noted a significant impact from the appreciation of the Mexican Peso.
The first quarter saw a slight decrease in total container throughput, which marginally dropped from 3,102,105 twenty-foot equivalent units (TEUs) in 2023 to 3,090,118 TEUs. This decrease was primarily due to the expiration of the concession contract at Pakistan International Container Terminal and other operational changes in Indonesia and Ecuador.
Despite these challenges, Razon remains optimistic about the company’s financial health and future prospects.
“Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46 percent during the quarter,” he said, underscoring the company’s capability to invest and capitalize on growth opportunities.
The increase in consolidated cash operating expenses, which rose 6% to US$172.48 million, was attributed to government-mandated salary adjustments, maintenance costs, and unfavorable foreign exchange impacts, among others.
ICTSI plans to continue its expansion with an estimated capital expenditure of approximately US$450 million for 2024. This will support ongoing projects in Brazil, Mexico, the Philippines, Democratic Republic of Congo, and Indonesia, including the development of a new terminal in Iloilo, Philippines.
Razon assured stakeholders of the company’s commitment to maintaining a disciplined business model.
“We look to the future with confidence, and with our highly disciplined business model, we remain strongly positioned to continue to deliver financially and operationally for all our stakeholders,” he concluded.
