The International Container Terminal Services Inc. on Monday announced a 34 percent surge in net income to USD420.55 million in the first six months this year.
“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. We have a robust balance sheet and cash generation is strong with free cash flow up 24 percent to $602 million which means we have significant headroom to invest for future growth,” Enrique K. Razon, chairman and president of ICTSI, said.
Revenue from port operations amounted to USD1.32 billion, up 13 percent from the USD1.16 billion in the same period last year.
Excluding the impact of new businesses in the Philippines and Brazil; and discontinued businesses in Pakistan and Indonesia, the group’s consolidated gross revenue would have increased by15 percent.
ICTSI handled a consolidated volume of 6.31 million twenty-foot equivalent units (TEUs) in the six months of the year, higher than only 6.27 million 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 de consolidation of OJA in Jakarta, Indonesia,” ICTSI said.
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.
ICTSI’s consolidated cash operating expenses in the first six months was seven percent higher at USD349.43 million compared to year ago of only USD325.85 million.
Capital expenditure, excluding capitalized borrowing costs, amounted to USD185.72 million in the first six months. This relates to the ongoing expansion at CMSA in Mexico, ICTSI Rio in Brazil, the Manila International Container Terminal (MICT) in Philippines, ICTSI DR Congo S.A. (IDRC) in the Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.
The group’s estimated capex this year, which includes USD60 million carried forward from 2023, total USD450 million to complete the expansion in Brazil and the development of EJMT in Indonesia, continue the ongoing expansion in Mexico, the 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 its capital maintenance requirements.
