Enrique K. Razon Jr., ICTSI Chairman and President said: “I am pleased to report another excellent set of results in which we have delivered impressive revenue growth, up 14 percent to US$2.01 billion. EBITDA rose by 19 percent to US$1.32 billion while net income attributable to equity holders was up 31 percent to US$632.58 million, both new records for ICTSI. “Our strategy is centered on our international portfolio, and its diversity has enabled us to capitalize on growth opportunities globally. Our cash flow and balance sheet remain strong with free cash flow up by 18 percent to US$849 million demonstrating we are financially robust and able to invest in our new and existing projects to retain our position as the world’s largest independent port operator. We are confident in our outlook and well-positioned to deliver future growth.”
International Container Terminal Services, Inc. (ICTSI) reported its unaudited consolidated financial results for the first nine months of 2024 posting revenue from port operations of US$2.01 billion, an increase of 14% from the US$1.76 billion reported for the same period in 2023; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$1.32 billion, 19% higher than the US$1.11 billion generated in the same period last year; and net income attributable to equity holders of US$632.58 million, 31% more than the US$484.54 million earned in the first three quarters of 2023 primarily due to higher operating income, partially tapered by increase in interest on loans and lease liabilities related to concession renewal, and higher depreciation and amortization. Diluted earnings per share increased 33% to US$0.303 in the first three quarters of 2024 from US$0.227 in the same period in 2023. Net income attributable to equity holders for the first nine months of 2024 included nonrecurring income from settlement of legal claims at ICTSI Oregon and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia whilst the first nine months of 2023 included the impairment of goodwill attributed to Pakistan International Container Terminal (PICT) in Karachi, Pakistan. Excluding the impact of nonrecurring income and charges, net income attributable to equity holders would have grown 24% to US$613.72 million. For the quarter ended September 30, 2024, revenue from port operations increased 16% from US$594.88 million to US$691.70 million; EBITDA was 19% higher at US$451.51 million from US$377.85 million; and net income attributable to equity holders was at US$212.03 million, 24% more than the US$170.74 million in the same period in 2023. Diluted earnings per share for the third quarter of 2023 and 2024 were at US$0.080 and US$0.102, respectively. ICTSI handled consolidated volume of 9,604,127 twenty-foot equivalent units (TEUs) in the nine months ended September 30, 2024, 2% higher than the 9,451,912 TEUs handled in the same period in 2023. The 2% consolidated volume growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and contribution of Visayas Container Terminal (VCT) in Iloilo, Philippines; 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 deconsolidation of OJA in Jakarta, Indonesia. 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 5%. For the quarter ended September 30, 2024, total consolidated throughput was 4% higher at 3,291,964 TEUs compared to 3,176,076 TEUs in 2023. Gross revenues from port operations for the first three quarters of 2024 grew 14% to US$2.01 billion from US$1.76 billion reported in the same period in 2023 mainly due to volume growth with favorable container mix, tariff adjustments, higher revenues from ancillary services and growth in general cargo activities in certain terminals. This was partially reduced by volume-driven decrease in revenues at certain terminals; the impact of expiration of the concession contract at PICT in Karachi, Pakistan; and unfavorable translation impact mainly of the depreciation of Nigerian Naira (NGN)-, Philippine Peso (PHP)-, and Brazilian Real (BRL)- based revenues at ICTSI Nigeria in Port of Onne, River State, Nigeria, Philippine terminals, and Brazil terminals, respectively. Excluding the impact of new businesses in the Philippines and Brazil; and discontinued businesses in Pakistan and Indonesia, the Group’s consolidated gross revenues would have increased by 15%. Consolidated cash operating expenses in the first nine months of 2024 was 8% higher at US$529.27 million compared to US$489.14 million for the same period in 2023. The increase in cash operating expenses was mainly due to volume-driven increases in operating expenses, including increases related to the growth in revenue generating ancillary services and general cargo activities in certain terminals, and government-mandated and contracted salary rate adjustments (including benefits); tapered by continuous cost optimization measures implemented, the impact of the expiration of the concession contract at PICT, and favorable foreign exchange effect mainly of NGN-, PHP-, and BRL- based expenses at ICTSI Nigeria, Philippine terminals, and Brazil terminals, respectively. Consolidated EBITDA for the first three quarters of 2024 increased 19% to US$1.32 billion from US$1.11 billion in 2023. Consequently, EBITDA margin expanded to 65% from 63% in the same period in 2023. Consolidated financing charges and other expenses for the first nine months increased 5% to US$138.88 million from US$132.68 million in 2023 mainly due to a higher average loan balance and the impact of the deconsolidation of OJA, offset by the impairment of goodwill attributed to PICT in 2023. Capital expenditures, excluding capitalized borrowing costs, amounted to US$298.63 million for the first nine months of 2024, 66% of the estimated US$450 million capital expenditure for 2024. These were mainly for the completion of phase 3A expansion in Contecon Manzanillo S.A. (CMSA) in Mexico, the berth extension in ICTSI Rio in Brazil, the initial development phases in Visayas Container Terminal (VCT) in Iloilo, Philippines and East Java Multipurpose Terminal (EJMT) in Indonesia. Included in the capital expenditure for the nine months of 2024 as well were the ongoing expansions at Manila International Container Terminal (MICT) in Philippines and ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo which are expected to continue on into the next quarter together with the initial disbursement for phase 3B expansion in CMSA in Mexico, payment of the last tranche of concession extension related expenditures in Madagascar, equipment acquisitions and upgrades, and for capital maintenance requirements. ICTSI is a leading global developer, manager and operator of container terminals in the 50.0 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.
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