Currency depreciation, among major factors, has tempered the financial growth of Manila-based global port operator International Container Terminal Services, Inc. (ICTSI) to 14 percent increase in gross revenues from port operations for the first three quarters of 2024 to $2.01 billion from $1.76 billion reported in the same period in 2023.
In a report, ICTSI said that the growth was mainly due to volume growth with favorable container mix, tariff adjustments, higher revenues from ancillary services and growth in general cargo activities in certain terminals.
It also highlighted though that growth was partially reduced due to volume-driven decrease in revenues at certain terminals; the impact of expiration of the concession contract at PICT in Karachi, Pakistan; and unfavorable translation impact mainly of the depreciation of currencies in some countries where they operate terminals, including the Nigerian Naira (NGN)-, Philippine Peso (PHP)-, and Brazilian Real (BRL).
Excluding the impact of new businesses in the Philippines and Brazil; and discontinued businesses in Pakistan and Indonesia, the Group’s consolidated gross revenues would have increased by 15 percent.
For the quarter ended September 30, 2024, revenue from port operations increased 16 percent from $594.88 million to $691.70 million; EBITDA was 19 percent higher at $451.51 million from $377.85 million; and net income attributable to equity holders was at $212.03 million, 24 percent more than the $170.74 million in the same period in 2023. Diluted earnings per share for the third quarter of 2023 and 2024 were at $0.080 and $0.102, respectively.
ICTSI handled consolidated volume of 9,604,127 twenty-foot equivalent units (TEUs) in the nine months ended September 30 this year, two percent higher than the 9,451,912 TEUs handled in the same period in 2023.
The two percent consolidated volume growth was mainly due to the impact of new services and improvement in trade activities at certain terminals, and contribution of Visayas Container Terminal (VCT) in Iloilo, Philippines; offset by the decrease in volume at Contecon Guayaquil S.A. (CGSA) in Guayaquil Ecuador, the impact of expiration of the concession contract at PICT in Karachi, Pakistan, and the deconsolidation of OJA in 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. For the quarter ended September 30, 2024, total consolidated throughput was four percent higher at 3,291,964 TEUs compared to 3,176,076 TEUs in 2023.
Enrique K. Razon Jr., ICTSI Chairman and President said: “Our strategy is centered on our international portfolio, and its diversity has enabled us to capitalize on growth opportunities globally. Our cash flow and balance sheet remain strong with free cash flow up by 18 percent to US$849 million demonstrating we are financially robust and able to invest in our new and existing projects to retain our position as the world’s largest independent port operator. We are confident in our outlook and well-positioned to deliver future growth.”
ICTSI is a leading global developer, manager and operator of container terminals in the 50.0 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.
