ICTSI profit up 35.7% on strength of int’l portfolio

RAZON-LED International Container Terminal Services, Inc. (ICTSI) saw its attributable net income climb by 35.7% to $209.88 million for the first quarter (Q1), boosted by its international portfolio.

“The group continues to benefit from geographic diversification spanning 19 countries which has enabled us to deliver growth, despite regional economic headwinds,” ICTSI Chairman and President Enrique K. Razon told the stock exchange on Monday. 

For the January-to-March period, the company’s attributable net income went up to $209.88 million, marking a 35.7% increase from $164.61 million in the same period last year. 

The company’s combined revenues surged to $637.65 million, up by 11.4% from $572.25 million a year earlier, its financial report showed.

Broken down, its US operations accounted for the majority, or about 41.1% of its revenues at $262.27 million; Asia at $259.37 million or 40.7%, and EMEA, or Europe, the Middle East, and Africa’s operations at $116.01 million, accounting for 18.2%.

“I am pleased to announce an excellent first quarter with ICTSI delivering growth in revenues of 11%. Our international portfolio performed exceptionally well,” Mr. Razon said.

“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.”

The listed port operator said it handled a combined volume of 3.09 million twenty-foot equivalent units (TEUs) in the first quarter, lower than the 3.1 million TEUs handled in the first quarter last year.

The lower volume handled during the period was due to the expiration of the concession contract at the Pakistan International Container Terminal and the termination of cargo handling operations at PT Makassar Terminal Services in Indonesia, ICTSI said.

However, the impact of these were mitigated by the improvement in trade activities at certain terminals and its new services, it added.

Capital expenditures (capex), excluding capitalized borrowing costs for the first quarter, amounted to $67.94 million, which was allocated for the ongoing expansion at ICTSI-Contecon Manzanillo and ICTSI-Rio in Brazil, as well as for the expansion of terminals in the Philippines, the company said.

Earlier, the company said it projected a $450-million capex for the year, $60 million of which were carried over from last year’s capex.

The company said its target budget for 2024 was allocated for its recently acquired terminal in Iloilo, the Visayas Container Terminal, formerly known as the Iloilo Commercial Port Complex; expansion in Brazil; the development of the East Java Multipurpose Terminal in Indonesia; and its ongoing expansions in Mexico and the Democratic Republic of Congo.

At the local bourse on Monday, shares in the company gained P5 or 1.46% to end at P347 apiece. — Ashley Erika O. Jose