- ICTSI’s revenue increased by 14% to $2.01 billion, driven by higher throughput and improved operational efficiency.
- Net income attributable to equity holders rose 31% to $632.58 million, achieving a new record.
- EBITDA grew 19% to $1.32 billion, while EBITDA margin expanded from 63% to 65%.
- Total throughput increased 2% to 9.60 million TEUs, with growth in specific regions balancing declines in others.
- ICTSI allocated $298.63 million in capital expenditures, focusing on expansions across various international terminals.
International Container Terminal Services, Inc. (ICTSI) reported a strong financial performance for the first nine months of 2024, marked by notable increases in revenue, net income, and EBITDA. This growth reflects ICTSI’s strategic emphasis on its international portfolio, which has enabled it to capture new opportunities across the global market.
Revenue and Net Income Performance
ICTSI reported a revenue increase of 14%, reaching $2.01 billion for the period, as compared to the same timeframe in 2023. EBITDA also rose by 19%, amounting to $1.32 billion, driven by increased throughput and an advantageous container mix. Net income attributable to equity holders surged by 31% to $632.58 million, breaking previous records. After adjusting for one-time income and expenses, recurring net income reached $613.72 million, marking a year-over-year growth of 24%. Diluted earnings per share rose by 33% to $0.303, underscoring ICTSI’s continued profitability and operational efficiency.
Operational Efficiency and Throughput Growth
ICTSI’s consolidated volume increased by 2% to 9.60 million TEUs, up from 9.45 million TEUs during the first nine months of 2023. This volume growth was supported by new services, enhanced trade activity at specific terminals, and contributions from the Visayas Container Terminal in Iloilo, Philippines. However, some gains were offset by decreases in volume at Contecon Guayaquil in Ecuador and by the expiration of the concession at Pakistan International Container Terminal in Karachi. Excluding impacts from new and discontinued operations, consolidated volume growth was 5%.
Revenue Composition and Currency Impacts
Revenue from port operations saw a 14% increase year-over-year, driven by throughput growth, adjusted tariffs, and additional revenue from ancillary services. These increases were tempered by the expiration of contracts at select terminals, as well as currency depreciation in Nigeria, the Philippines, and Brazil. Adjusting for these factors, revenue growth would have been 15%.
Cost Management and EBITDA Margin Expansion
Operating expenses rose by 8% to $529.27 million due to volume-related expenses, government-mandated salary adjustments, and growth in ancillary services. Nevertheless, ICTSI managed to expand its EBITDA margin to 65%, up from 63% in 2023, benefiting from continuous cost-optimization measures and favorable foreign exchange effects.
Capital Expenditures and Expansion Initiatives
During the first nine months of 2024, ICTSI invested $298.63 million in capital expenditures, covering 66% of its planned $450 million budget for the year. These funds supported ongoing expansion projects, including the phase 3A expansion at Contecon Manzanillo in Mexico, berth extension at ICTSI Rio in Brazil, and initial development at Visayas Container Terminal in the Philippines. Other notable projects in progress include expansions at Manila International Container Terminal and ICTSI DR Congo.
Strategic Focus on International Expansion
ICTSI’s Chairman and President, Enrique K. Razon Jr., expressed confidence in the company’s financial health and growth outlook, highlighting ICTSI’s robust cash flow and balance sheet. With an 18% increase in free cash flow to $849 million, ICTSI is well-equipped to maintain its position as a leading independent port operator and continue investing in strategic projects worldwide.
Outlook
ICTSI’s strong financial results for the first three quarters of 2024 underscore its effective strategy in managing a diverse international portfolio and leveraging global growth opportunities. With continued investments in terminal expansions and infrastructure upgrades, ICTSI is well-positioned to drive further growth and maintain its competitive edge in the global market.
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Source: ICTSI
