Weak global trade hits ICTSI bottomline
In a report to the bourse, ICTSI disclosed that it booked $511.53 million attributable net income in 2023, which was 17 percent lower than the recorded $618.46 million a year ago.
Razon-led global port operator International Container Terminal Services Inc., or ICTSI, suffered a double-digit decline in its 2023 profit as lingering global market uncertainties took a toll on its operations.
Despite the headwinds, no less than ICTSI chairman and president Enrique K. Razon Jr. said that the company remains optimistic about charting a better growth path this year.
In a report to the bourse, ICTSI disclosed that it booked $511.53 million attributable net income in 2023, which was 17 percent lower than the recorded $618.46 million a year ago.
Notably, excluding the impairment of goodwill attributed to Pakistan International Container Terminal, net income attributable to equity holders would have grown six percent to $676.83 million.
In contrast, its revenues from global port operations last year improved by 6 percent to $2.39 billion from $2.24 billion in the year before.
Year of opportunity
“While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities as we continue to invest in new and existing terminals,” Razon said.
“We have a stronger platform than ever to grow, to drive market share, and continue our successful track record as a responsible business that creates long-term sustainable value for all its stakeholders,” he added.
ICTSI handled a consolidated volume of 12,749,214 twenty-foot equivalent units, or TEUs, in 2023, up by 4 percent from the 12,216,190 TEUs handled in 2022.
Last year, the company spent $336.32 million to fund ongoing expansions. This year, the company expects that spending may reach $450 million to sustain growth momentum.
Among others, the estimated capital expenditure will be utilized to fund the ongoing expansion in Brazil, Indonesia, Mexico, the Democratic Republic of Congo and the Philippines. It will also bankroll the development of the recently acquired terminal in Iloilo province.