ICTSI net income drops to $511.5M

RAZON-LED International Container Terminal Services Inc. (ICTSI) on Friday said its net income fell by 17 percent to $511.53 million last year from $618.46 million in 2022.

ICTSI said the profit drop was due to a number of factors, including the non-recurring and non-cash impairment of goodwill attributed to the acquisition of Pakistan International Container Terminal (PICT) in Karachi and other non-current assets.

Increases in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in the net loss of joint ventures were said to have also weighed on the bottom line.

Excluding the impairment of goodwill attributed to PICT and other non-current assets, net income attributable to equity holders would have grown 7 percent to $676.83 million.

“While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities as we continue to invest in new and existing terminals,” ICTSI Chairman and President Enrique Razon said in a statement.

“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.

Gross revenues from port operations grew 6 percent to $2.39 billion from $2.24 billion in 2022.

The port operator handled a consolidated volume of about 12.75 million twenty-foot equivalent units (TEUs) in 2023, up 4 percent compared to the number of TEUs handled the year before.

Consolidated cash operating expenses rose 8 percent to $662.70 million compared to $612.12 million in 2022.

Capital expenditures in 2023, excluding capitalized borrowing costs, amounted to $336.32 million.

These were mainly for expansion projects at the Manila International Container Terminal and other similar projects in Mexico, Australia, the Democratic Republic of Congo, Brazil, Nigeria, and East Java, Indonesia.

Estimated capital expenditures for 2024, which includes $60 million of capex carried forward from 2023, is about $450 million, the port operator said.

The 2024 capex budget will be utilized mainly to complete ongoing expansion projects and also to pay the last tranche of concession extension-related expenditures in Madagascar.

It will also be used to develop a recently acquired terminal in Iloilo; equipment acquisitions and upgrades; and for capital maintenance requirements.

ICTSI shares ended down P5.80, or 2.01 percent, at P283.20 each on Friday amid a 0.36-percent drop for the benchmark Philippine Stock Exchange index.