RAZON-LED International Container Terminal Services, Inc. (ICTSI) reported a 32.3% increase in second-quarter (Q2) attributable net income to $210.67 million, driven by a rise in container volumes at its terminals and growth in ancillary services.
“While we remain vigilant of continuing economic and geopolitical uncertainty, we have a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said.
For the April-to-June period, the company saw its combined revenues grow to $684.03 million, climbing by 15.4% from last year’s $592.73 million.
Broken down, the company’s second-quarter gross revenue from port operations was driven by its activities in Asia, which contributed $277.52 million to the total revenue. Revenue from operations in the US was $277.14 million, while revenue from the EMEA (Europe, Middle East, and Africa) region amounted to $129.37 million.
For the second quarter, Asia handled 1.78 million twenty-foot equivalent units (TEUs); EMEA at 607,489 TEUs, and US at 829,918 TEUs.
The listed port operator said its gross expenses for the second quarter grew by 4.6% to $306.66 million from $293.07 million in the comparable period in 2023.
“We’ve delivered a strong first-half performance, yet again demonstrating the strength of ICTSI’s diversified international portfolio and continued delivery of our strategic initiatives,” Mr. Razon said.
For the first semester, ICTSI’s attributable net income surged to $420.55 million, higher by 34% from the $313.8 million previously.
ICTSI said its first-half attributable net income includes income from the settlement of legal claims at its ICTSI Oregon and the impact of the deconsolidation of its unit, PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.
Excluding this nonrecurring income and charges, its attributable net income for the first semester would have increased to $401.69 million, the listed port operator said.
Its gross revenue for the January-to-June period increased to $1.32 billion, marking a 13.8% increase from $1.16 billion in the same period last year.
ICTSI said gross revenues from port operations were driven by higher ancillary services revenues, tariff adjustments, volume growth in terminals, and favorable translation impact of the appreciation of Mexican peso-based revenues.
The port operator managed a consolidated volume of 6.31 million TEUs for the first semester, 0.48% higher than last year’s 6.28 million TEUs.
The company attributed this volume growth to the impact of new services and improvement in trade activities at select terminals, ICTSI said.
However, ICTSI said its volume growth was offset by a volume decrease at its unit Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador due to the expiration of its concession contract at Pakistan International Container Terminal and the deconsolidation of OJA in Indonesia.
The company’s capital expenditures (capex) for the first six months amounted to $185.72 million, which was allocated to the ongoing expansion at CMSA in Mexico, ICTSI Rio in Brazil, Manila International Container Terminal (MICT) in the Philippines, ICTSI DR Congo S.A. (IDRC) in the Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia.
For the year, the company has allocated $450 million for its capex, including the $60-million capex carried over from 2023, ICTSI said.
At the stock exchange, shares in the company gained P7.20 or 2.01% to end at P365 each. — Ashley Erika O. Jose
