The International Container Terminal Services, Inc. (ICTSI) reported a strong first-quarter performance this year with net income jumping 36 percent to USD209.88 million.
The Razon-led port operator said the surge was driven by higher operating income, interest earnings, and a one-time payout from settling legal claims.
Excluding the income from the settlement of legal claims by ICTSI Oregon and the nonrecurring impact of the sale of PT PBM Olah Jasa Andal (OJA), net income attributable to equity holders would have grown only 24 percent to USD191.02 million
ICTSI revenue from port operations amounted to USD637.65 million in the first quarter, an increase of 11 percent from USD572.25 million reported last year.
“Our international portfolio performed exceptionally well, and the Group continues to benefit from geographic diversification spanning 19 countries which has enabled us to deliver growth despite regional economic headwinds,” Enrique K. Razon, ICTSI chairman and president, said.
“Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46 percent during the quarter further reinforcing our ability to invest and capitalize on growth opportunities,” he added.
ICTSI handled consolidated volume of 3,090,118 twenty-foot equivalent units (TEUs) in the first quarter this year, marginally down from 3,102,105 TEUs in the same period in 2023.
“Volume growth mainly from new services and improvement in trade activities at certain terminals was offset by the impact of expiration of the concession contract at Pakistan International Container Terminal (PICT) in Karachi, Pakistan, the deconsolidation of OJA in Jakarta, Indonesia, the termination of cargo handling operations at PT Makassar Terminal Services (PT MTS) in Makassar, Indonesia, and decrease in volume in Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador,” ICTSI said.
Excluding the impact of discontinued operations in Pakistan and Indonesia, the Group’s consolidated volume would have increased by five percent.
ICTSI capital expenditures, excluding capitalized borrowing costs, amounted to USD67.94 million in the quarter ended 31 March 2024.
The Group’s estimated capital expenditures this year, which include USD60 million of capital expenditures carried forward from 2023, is about USD450 million.
The estimated capital expenditure will be used 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.
