ICTSI 2024 net income rises 66% to record $850m

The International Container Terminal Services, Inc. (ICTSI) Group has reported another “excellent” year of record EBITDA at US$1.78 billion and its highest ever net income of US$849.8 million. 

“Pleasingly, revenues increased by 15 percent 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,” said Enrique K. Razon Jr., ICTSI Chairman and President.

“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.” 

The increases in net income attributable to equity holders for 2024 compared to 2023 included nonrecurring income from settlement of legal claims at ICTSI Oregon in Q1 2024 and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA), Jakarta, Indonesia.  The nonrecurring expenses in 2023 included the charge on goodwill attributed to Pakistan International Container Terminal (PICT), Karachi, Pakistan and other noncurrent assets.  Excluding the impact of nonrecurring income and charges in 2023 and 2024, net income attributable to equity holders would have grown 23 percent to US$830.94 million.

ICTSI handled consolidated volume of 13,066,949 TEU  in 2024, two percent higher than the 12,749,214 TEU handled in 2023.  The growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and the contribution of Visayas Container Terminal (VCT), the new terminal in Iloilo, Philippines; partially offset by the decrease in volume at Contecon Guayaquil S.A. (CGSA), Guayaquil, Ecuador, the impact of expiration of the concession contract at PICT, Karachi, Pakistan, and the deconsolidation of OJA, 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 five percent.  

Gross revenues from port operations in 2024 grew 15 percent to US$2.74 billion from US$2.39 billion reported in 2023 mainly due to volume growth with a favourable 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 decreases in revenue at CGSA, Guayaquil, Ecuador; the impact of expiration of the concession contract at PICT, Karachi, Pakistan, the deconsolidation of OJA, Jakarta, Indonesia; and an unfavorable foreign exchange translation impact mainly from the depreciation of Brazilian Real (BRL)-, Nigerian Naira (NGN)-, Mexican Peso (MXN)-,and Philippine Peso (PHP)- based revenues.

Consolidated cash operating expenses in 2024 were 10 percent higher at US$727.25 million compared to US$662.70 million in 2023.  The increase in cash operating expenses was mainly due to higher volumes, 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).  This was tapered by continuous cost optimization measures, the impact of the expiration of the concession contract at PICT, and favourable foreign exchange effects mainly of BRL-, NGN-, and PHP- based expenses.

The Group says its estimated capital expenditures for 2025 is approximately US$580 million.  The estimated capital expenditure will be utilised mainly for the continued development of the new project in Batangas, Philippines, phase 3B expansion in CMSA, Manzanillo, Mexico, expansion of MICT, Manila, Philippines, and IDRC, Matadi, DRC; new expansion projects at ICTSI Rio, Brazil and Mindanao Container Terminal, Cagayan de Oro, Philippines; various other equipment acquisitions and upgrades; and maintenance capex.  

ICTSI is a leading global developer, manager and operator of container terminals in the 50,000 TEU to 3.5 million TEU/year range.  ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.