International Container Terminal Services Inc. (ICTSI) said Wednesday its net income grew 31 percent in the first nine months of 2024 on higher operating revenues.
The port operator led by businessman Enrique Razon Jr. said net income amounted to $632.58 million from January to September, up from $484.54 million in the same period last year.
The company said net income attributable to equity holders included non-recurring income from the settlement of legal claims at ICTSI Oregon and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.
The nine-month income also included the impairment of good will 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 percent to $613.72 million, it said.
ICTSI posted a 24-percent increase in third-quarter net income to $212.03 million from $170.74 million a year ago.
“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,” said Razon, chairman and president of ICTSI.
“We are confident in our outlook and well-positioned to deliver future growth,” he said.
Gross revenues from port operations in the first three quarters rose 14 percent to $2.01 billion from $1.76 billion a year earlier on volume growth with favorable container mix, tariff adjustments, higher revenues from ancillary services and growth in general cargo activities in certain terminals.
ICTSI handled a consolidated volume of 9,604,127 twenty-foot equivalent units (TEUs) in nine months, or 2 percent higher than 9,451,912 TEUs it handled in the same period in 2023.
The consolidated volume growth was due to the impact of new services and improvement in trade activities at certain terminals and contribution of Visayas Container Terminal (VCT) in Iloilo.
Capital expenditures, excluding capitalized borrowing costs, amounted to $298.63 million in the first nine months of 2024, representing 66 percent of the estimated $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.
