International Container Terminal Services Inc. reported Friday net income last year declined 17 percent year-on-year to USD511.5 million primarily due to non-recurring and non-cash impairment of goodwill attributed to the acquisition of Pakistan International Container Terminal and other concurrent assets.
Increases in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in net loss of joint ventures also weighed down bottomline of ICTSI, the Philippine-listed global port operator of businessman Enrique Razon,
Excluding the impairment of goodwill attributed to PICT and other non-current assets, net income attributable to equity holders would have grown 7 percent to US$676.83 million. Diluted earnings per share decreased by 17 percent to USD0.237 in 2023 from USD0.287 in 2022.
Revenue increased by 6 percent to USD2.39 billion while earning before interest, taxes, depreciation and amortization increased 7 percent to a record USD1.51 billion.
“While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities as we continue to invest in new and existing terminals. We have a stronger platform than ever to grow, to drive market share and continue our successful track record as a responsible business that creates long term sustainable value for all its stakeholders,” said Enrique Razon, chairman and president of ICTSI.
ICTSI estimated capital expenditures for this year is at USD450 million, including USD60 million of capex carried forward from 2023. The funds will be utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, Philippines and Congo; pay the last tranche of concession extension related expenditures in Madagascar; develop the recently acquired terminal in Iloilo; equipment acquisitions and upgrades; and for capital maintenance requirements.
ICTSI handled last year consolidated volume of 12,749,214 twenty-foot equivalent units, 4 percent more compared to the 12,216,190 TEUs handled in 2022. The increase in consolidated volume was mainly due to the contribution of Manila North Harbour Port that was consolidated starting September 2022, improvement in trade activities, and new services at certain terminals.
Gross revenues from port operations for the year was 6 percent higher at USd2.39 billion.
Consolidated cash operating expenses last year was 8 percent higher at USD662.70 million, with the increase in cash operating expenses mainly due to the costs contribution of Manila North Harbour and of new businesses at IRB Logistica in Brazil, salary increases as well as volume-driven increase in the cost of maintenance and repairs.
Total financing charges and other expenses increased 67 percent to USD329.89 million.
Philippine Stock Exchange-listed companies that earn a substantial amount of their income in foreign currency are allowed to report financial results in that other currency.
