ICTSI net income up 36% to $209M in 1Q 2024
INTERNATIONAL Container Terminal Services Inc. (ICTSI) reported a 36 percent surge in net income to $209.88 million, demonstrating resilience in tough economic conditions.
Enrique Razon, ICTSI chairman and president, expressed satisfaction with the company’s performance, stating, “I am pleased to announce an excellent first quarter with ICTSI delivering growth in revenues of 11 percent to $637.65 million and record Ebitda of $413.76 million, a rise of 17 percent against the previous period.”
Razon attributed this success to the exceptional performance of the company’s international portfolio, emphasizing the benefits derived from geographic diversification across 19 countries, which enabled growth despite regional economic challenges.
Additionally, recurring net income saw a notable increase of 24 percent, amounting to $191.02 million, reflecting sustained profitability and operational efficiency.
“Our balance sheet is robust and cash generation has been very strong, with free cash flow up 46 percent during the quarter, further reinforcing our ability to invest and capitalize on growth opportunities,” he said.
Despite facing challenges such as a marginal decline in consolidated volume and the impact of discontinued operations in certain regions, ICTSI demonstrated resilience by achieving substantial revenue growth.
Port operations gross revenues for Q1 2024 were 11 percent higher at $637.65 million compared to $572.25 million in Q1 2023. This increase was mainly due to changes in container mix, ancillary services, tariff adjustments and volume growth in certain terminals, particularly at Contecon Manzanillo S.A. in Mexico.
However, volume-driven decreases at CGSA in Guayaquil, Ecuador, the expiration of concession contracts at PICT in Karachi, Pakistan, and the depreciation of Nigerian Nairabased revenues at ICTSI Nigeria partially offset these gains.
The group’s consolidated gross revenues would have increased by 14 percent, excluding new business in Brazil and discontinued businesses in Pakistan and Indonesia.
ICTSI maintained a focus on efficient cost management despite a 6 percent increase in consolidated cash operating expenses. This increase was primarily driven by governmentmandated salary rate adjustments, repairs and maintenance, and foreign exchange effects.
However, the company’s consolidated (Earnings Before Interest, Taxes, Depreciation and Amortization Earnings Before Interest, Taxes, Depreciation and Amortization) Ebitda margin increased to 65 percent in the first quarter of 2024, indicating effective management of operational costs and enhanced profitability.
Looking ahead, ICTSI plans to allocate approximately $450 million for capital expenditures in 2024, focusing on completing ongoing expansions, developing new terminals, and fulfilling capital maintenance requirements.
The estimated capital expenditure will be utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, the Philippines and the Democratic Republic of Congo; pay the last tranche of concession extension-related expenditures in Madagascar; develop the recently acquired terminal in Iloilo; equipment acquisitions and upgrades; and for capital maintenance requirements.
“We look to the future with confidence, and with our highly disciplined business model, we remain strongly positioned to continue to deliver financially and operationally for all our stakeholders,” he added.