- Enrique K. Razon Jr. Highlights Strong Performance and Growth.
- ICTSI Achieves 15% Revenue Growth and Highest Net Income in History.
- Nonrecurring Income and Expenses Contribute to 2024 Net Income Surge.
International Container Terminal Services, Inc. (ICTSI) has posted outstanding 2024 financials with record-breaking performance on all major indicators. The international terminal operator reported a 15% revenue growth to US$2.74 billion and posted its highest net income ever at US$849.8 million, a 66% year-over-year expansion, reports ICTSI.
Enrique K. Razon Jr. Comments on Strong Results
Enrique K. Razon Jr., ICTSI Chairman and President, said: “The Group has delivered another set of excellent results, another year of record EBITDA at US$1.78 billion and our highest net income in history of US$849.8 million. Pleasingly, revenues increased by 15 percent to US$2.74 billion, and our cash flow and balance sheet remain strong with free cash flow up by 12% to US$1.08 billion, giving us the financial strength and flexibility to pursue new opportunities and invest in existing projects.”
Acknowledging the Team’s Efforts
“While we continue to be mindful of the complex geopolitical backdrop, these results demonstrate the strength and resilience of our globally diversified origin and destination portfolio. I would like to thank our ICTSI colleagues all over the world for their unwavering focus, hard work, and dedication in delivering another outstanding year.”
Revenue and Earnings Growth
International Container Terminal Services, Inc. (ICTSI) released audited consolidated financial statements for 2024 with revenue from port operations of US$2.74 billion, an increase of 15% from US$2.39 billion in 2023. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) amounted to US$1.78 billion, a 18% rise from US$1.51 billion in 2023. Net income attributable to equity holders was US$849.8 million, up 66% from US$511.5 million in 2023. This growth was mainly attributable to increased operating income and interest from unusually high cash balances, although partially countered by higher interest on loans and lease liabilities from concession renewals, as well as increased depreciation and amortization. Diluted earnings per share improved by 72% to US$0.407 in 2024 from US$0.237 in 2023.
Legal Claims and Deconsolidation Effects
The growth in net income for 2024 had included nonrecurring income from the resolution of legal claims at ICTSI Oregon in Q1 2024 and the effect of deconsolidation of PT PBM Olah Jasa Andal (OJA), Jakarta, Indonesia. Nonrecurring charges in 2023 included a charge to goodwill relating to Pakistan International Container Terminal (PICT), Karachi, Pakistan, and other noncurrent assets. Omitting the effect of nonrecurring income and charges, net income attributable to equity holders would have increased by 23% to US$830.94 million.
Consolidated TEU Handling and Revenue Growth
ICTSI processed a consolidated volume of 13,066,949 twenty-foot equivalent units (TEUs) in 2024, up 2% from the 12,749,214 TEUs processed in 2023. The increase was primarily due to new services, enhanced trade activities at some terminals, and the contribution of the Visayas Container Terminal (VCT) in Iloilo, Philippines. This was partly offset by a decline in volume at Contecon Guayaquil S.A. (CGSA) in Ecuador, concession contract expirations in PICT Karachi, and OJA deconsolidation in Jakarta. Adjusting for such effects, consolidated volume of the group would have risen by 5%.
Growth in Port Operations Revenue
Gross port operation revenues were up 15% to US$2.74 billion in 2024, from US$2.39 billion in 2023. Volume expansion, a good container mix, tariff increases, increased revenues from ancillary services, and increased general cargo activities at some terminals contributed to this growth. This was partly offset by volume-driven revenue declines at CGSA, Guayaquil; the concession contract expiration at PICT, Karachi; deconsolidation of OJA in Jakarta; and foreign exchange translation losses.
Growing Operating Expenses
Consolidated cash operating costs in 2024 were 10% more, at US$727.25 million, than in 2023 at US$662.7 million. It was mainly caused by the increased volumes, especially growth in revenue-yielding ancillary services and general cargo activities within some terminals, combined with compulsory government-mandated increases in salary rates. Nevertheless, ongoing cost reduction efforts, together with positive foreign exchange impacts, moderated some of these rises.
EBITDA Margin Improvement
Consolidated 2024 EBITDA rose by 18% to US$1.78 billion from US$1.51 billion for 2023, and an increase of two percentage points in the EBITDA margin to 65%, compared to 63% for 2023.
Reduction in Financing Charges
Consolidated financing costs and other charges reduced by 44% to US$186.05 million in 2024 from US$329.89 million in 2023. This decline was primarily accounted for by the nonrecurring and non-cash goodwill charge related to PICT and other non-financial assets during 2023, although it was partly offset by increased interest and financing charges on fresh loans during 2024.
Capital Expenditures during 2024
ICTSI’s capital expenditures in 2024, excluding capitalized borrowing costs, amounted to US$517.14 million. These expenditures were primarily focused on the completion of Phase 3A expansion in Contecon Manzanillo S.A. (CMSA), Manzanillo, Mexico, the berth extension in ICTSI Rio, Brazil, and equipment and development in the newly acquired VCT terminal in Iloilo, Philippines. Other significant investments were the continuing expansions at Manila International Container Terminal (MICT), Philippines, and ICTSI DR Congo S.A. (IDRC), Matadi, Democratic Republic of Congo (DRC), and the payment of the final tranche of concession extension-related expenses in Madagascar.
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Source: ICTSI
