- Throughput remained at 3.10 million TEUs
- Revenues grew 11% to US$637.65 million
- EBITDA 17% higher at US$413.76 million
- Diluted EPS increased 37% to US$0.099
Enrique K. Razon, ICTSI Chairman and President said: “I am pleased to announce an excellent first quarter with ICTSI delivering growth in revenues of 11 percent to US$637.65 million and record EBITDA of US$413.76 million, a rise of 17 percent against the previous period. Our international portfolio performed exceptionally well, and the Group continues to benefit from geographic diversification spanning 19 countries which has enabled us to deliver growth, despite regional economic headwinds.”
“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.”
“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.”
International Container Terminal Services, Inc. (ICTSI) today reported unaudited consolidated financial results for the quarter ended March 31, 2024 posting revenue from port operations of US$637.65 million, an increase of 11 percent from the US$572.25 million reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$413.76 million, 17 percent higher than the US$354.20 million generated in the first quarter of 2023; and net income attributable to equity holders of US$209.88 million, 36 percent more than the US$154.61 million earned in the same period last year primarily due to higher operating income, interest and nonrecurring income from settlement of legal claims, and lower equity share in net loss of joint ventures; partially tapered by increases in depreciation and amortization, interest on loans and lease liabilities, and the nonrecurring impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA). Excluding the income from the settlement of legal claims by ICTSI Oregon and the nonrecurring impact of the sale of OJA, net income attributable to equity holders would have grown 24 percent to US$191.02 million. Diluted earnings per share increased 37 percent to US$0.099 from US$0.072 in the first quarter of 2023.
ICTSI handled consolidated volume of 3,090,118 twenty-foot equivalent units (TEUs) in the first quarter of 2024, marginally down from 3,102,105 TEUs handled in the same period in 2023. Volume growth mainly from new services and improvement in trade activities at certain terminals was offset by the impact of expiration of the concession contract at Pakistan International Container Terminal (PICT) in Karachi, Pakistan, deconsolidation of OJA in Jakarta, Indonesia, termination of cargo handling operations at PT Makassar Terminal Services (PT MTS) in Makassar, Indonesia, and decrease in volume in Contecon Guayaquil S.A. (CGSA) in Guayaquil, Ecuador. Excluding the impact of discontinued operations in Pakistan and Indonesia, the Group's consolidated volume would have increased by five percent.
Gross revenues from port operations for the quarter ended March 31, 2024 was 11 percent higher at US$637.65 million compared to the US$572.25 million reported in the same period in 2023 mainly due to higher revenues from changes in the container mix, ancillary services, tariff adjustments, and volume growth in certain terminals largely at Contecon Manzanillo S.A. (CMSA) in Manzanillo, Mexico, including favorable translation impact of the appreciation of Mexican Peso (MXN)-based revenues. This was partially tapered by volume-driven decreases in revenues at certain terminals mainly at CGSA in Guayaquil, Ecuador; the impact of expiration of the concession contract at PICT in Karachi, Pakistan; and unfavorable translation impact mainly of the depreciation of Nigerian Naira (NGN)-based revenues at ICTSI Nigeria in Port of Onne, River State, Nigeria. Excluding the impact of new business in Brazil and discontinued businesses in Pakistan and Indonesia, the Group’s consolidated gross revenues would have increased by 14 percent.
Consolidated cash operating expenses in the first quarter of 2024 was six percent higher at US$172.48 million compared to US$163.14 million for the same period in 2023. The increase in cash operating expenses was driven by government-mandated and contracted salary rate adjustments (including benefits), various repairs and maintenance of port equipment, and unfavorable foreign exchange effect mainly of MXN-based expenses at CMSA; partially reduced by the impact of the expiration of concession contract at PICT, lower equipment and facilities-related expenses mainly rent, power and fuel, continuous cost optimization measures implemented, and the favorable foreign exchange effect mainly of NGN-based expenses at ICTSI Nigeria. Excluding the impact of new and discontinued businesses, consolidated cash operating expenses would have increased by nine percent.
Consolidated EBITDA increased 17 percent to US$413.76 million for the quarter ended March 31, 2024 from US$354.20 million for the same period in 2023. EBITDA margin increased to 65 percent in the first quarter of 2024 from 62 percent in the same period in 2023.
Consolidated financing charges and other expenses in the first quarter of 2024 increased by 14 percent to US$46.35 million from US$40.78 million in 2023 mainly due to higher loan balance and the impact of the deconsolidation of OJA.
Capital expenditures, excluding capitalized borrowing costs, amounted to US$67.94 million for the quarter ended March 31, 2024. These were mainly for the ongoing expansions at CMSA in Mexico, ICTSI Rio in Brazil, certain Philippine terminals, ICTSI DR Congo S.A. (IDRC) in Democratic Republic of Congo, and East Java Multipurpose Terminal (EJMT) in Indonesia. The Group’s estimated capital expenditures for 2024, which includes US$60 million of capex carried forward from 2023, is approximately US$450 million. 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, Philippines and Democratic Republic of Congo; pay the last tranche of concession extension related expenditures in Madagascar; develop the recently acquired terminal in Iloilo in the Philippines; equipment acquisitions and upgrades; and for capital maintenance requirements.
