International Container Terminal Services, Inc. (ICTSI) reported a significant rise in its net income for the first half of 2024, reaching a record high of $420.55 million, marking a 34% increase from the same period last year.
The growth was driven by continued strong performance across its diversified portfolio of terminals globally, ICTSI said in a statement.
ICTSI’s revenue from port operations rose 13% to $1.32 billion, up from $1.16 billion in the first six months of 2023.
The company also saw a 19% jump in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), which reached $864.99 million.
Diluted earnings per share (EPS) also saw substantial growth, increasing by 36% to $0.200.
Chairman and President Enrique K. Razon Jr. attributed this strong performance to the strategic initiatives and resilient operations across ICTSI’s international terminal portfolio.
“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,” Razon stated.
He further emphasized the company’s robust financial position, highlighting the 24% increase in free cash flow to $602 million, which provides ample capacity for future investments.
The company handled a consolidated volume of 6.31 million twenty-foot equivalent units (TEUs) during the first half of 2024, reflecting a marginal increase of 1% compared to the same period last year.
The growth was fueled by new services and improved trade activities at certain terminals, although it was partially offset by a decrease in volume at Contecon Guayaquil S.A. in Ecuador and the impact of the expiration of a concession contract in Pakistan.
For the second quarter alone, ICTSI’s revenue from port operations surged by 15% to $684.02 million, with a 20% increase in EBITDA, which amounted to $451.23 million. Net income attributable to equity holders also rose sharply by 32% to $210.67 million for the quarter.
Despite the strong results, Razon acknowledged the ongoing economic and geopolitical uncertainties but remained confident in the company’s growth strategy.
“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,” he said.
ICTSI’s capital expenditures for the first half of 2024 totaled $185.72 million, primarily allocated for expansions in Mexico, Brazil, the Philippines, and the Democratic Republic of Congo, as well as ongoing developments in Indonesia.
The company’s estimated capital expenditure for the full year 2024 is around $450 million, which includes the completion of major projects and equipment upgrades across its global operations.
