• Throughput grew 4% to 12.75 million TEUs
  • § Revenues increased 6% to US$2.39 billion
  • § EBITDA up 7% to record high US$1.51 billion

Enrique K. Razon, ICTSI Chairman and President said: “I am proud of the Group’s performance in 2023; the efforts of ICTSI’s colleagues around the world have resulted in revenues increasing by six percent to US$2.39 billion and record EBITDA of US$1.51 billion. In the past year, the Group delivered industry outperformance, illustrating the strength of its diversified portfolio and operating strategy as well as our financial discipline.

“While the geopolitical backdrop remains complex, 2024 is set to be ripe with opportunities as we continue to invest in new and existing terminals. We have a stronger platform than ever to grow, to drive market share and continue our successful track record as a responsible business that creates long term sustainable value for all its stakeholders.”

International Container Terminal Services, Inc. (ICTSI) reported audited consolidated financial results for 2023 posting revenue from port operations of US$2.39 billion, an increase of six percent from the US$2.24 billion reported last year; Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of US$1.51 billion, seven percent higher than the US$1.41 billion generated in 2022; and net income attributable to equity holders of US$511.53 million, 17 percent less than the US$618.46 million earned last year primarily due to non-recurring and non-cash impairment of goodwill attributed to the acquisition of Pakistan International Container Terminal (PICT) in Karachi, Pakistan and other noncurrent assets; and increases in depreciation and amortization, interests on loans, lease liabilities and concession rights payable, and equity share in net loss of joint ventures. This was partially tapered by higher operating income and interest earned from short-term investments and deposits; and lower COVID-19-related costs. Excluding the impairment of goodwill attributed to PICT and other non-current assets, net income attributable to equity holders would have grown seven percent to US$676.83 million. Diluted earnings per share decreased by 17 percent to US$0.237 in 2023 from US$0.287 in 2022.

ICTSI handled consolidated volume of 12,749,214 twenty-foot equivalent units (TEUs) in 2023, four percent more compared to the 12,216,190 TEUs handled in 2022. The increase in consolidated volume was mainly due to the contribution of Manila North Harbour Port, Inc. (MNHPI) in Manila, Philippines that was consolidated starting September 2022, improvement in trade activities, and new services at certain terminals; tapered mainly by the impact of the expiration of concession contract at PICT in Karachi, Pakistan; cessation of cargo handling operations at Makassar Terminal Services (MTS) in Makassar, Indonesia and Davao Integrated Port and Stevedoring Services Corporation (DIPSSCOR) in Davao, Philippines; and slowdown in trade activities at certain terminals. Excluding the contribution of MNHPI, PICT, MTS and DIPSSCOR, consolidated volume would have increased by two percent.

Gross revenues from port operations for the year ended December 31, 2023 was six percent higher at US$2.39 billion compared to the US$2.24 billion reported in 2022 mainly due to the contribution of MNHPI; tariff adjustments, volume growth and higher revenues from ancillary services and general cargo business at certain terminals; and favorable translation impact mainly of Mexican Peso (MXN)- and Iraqi Dinar (IQD)- based revenues at Contecon Manzanillo S.A. (CMSA) in Mexico and ICTSI Iraq, respectively, and Brazilian Reais (BRL)- based revenues at Tecon Suape S.A. (TSSA) and ICTSI Rio in Brazil. This was partially tapered by the expiration of the concession contract at PICT; slowdown in trade activities at Victoria International Container Terminal (VICT) in Melbourne, Australia; and unfavorable translation impact mainly of Philippine Peso (PHP)- and Australian Dollars (AUD)- based revenues at Philippine terminals and VICT in Australia, respectively. Excluding the contribution of MNHPI, PICT, MTS, DIPSSCOR, and the impact of new businesses, consolidated gross revenues would have also increased by six percent.

Consolidated cash operating expenses in 2023 was eight percent higher at US$662.70 million compared to US$612.12 million in 2022. The increase in cash operating expenses was mainly due to the costs contribution of MNHPI and of new businesses at IRB Logistica in Brazil; government-mandated and contracted salary rate adjustments, including benefits; increases in professional fees, transportation and travel expenses mainly related to business development activities; volume-driven increase in contracted services and repairs and maintenance; and unfavorable foreign exchange effect mainly of MXN-based expenses at CMSA. The increase was partially tapered by the expiration of the concession contract at PICT, and cessation of cargo handling operations at MTS and DIPSSCOR; decrease in power costs; continuous cost optimization measures implemented; and favorable foreign exchange effect mainly of PHP- and AUD- based expenses at Philippine terminals, and VICT, respectively.

Consolidated EBITDA increased seven percent to US$1.51 billion in 2023 from US$1.41 billion in 2022 due to higher revenues, partially tapered by the increase in cash operating expenses. EBITDA margin, on the other hand, remained flat at 63%.

Consolidated financing charges and other expenses increased 67 percent to US$329.89 million in from US$198.04 million in 2022 mainly due to nonrecurring and non-cash impairment of goodwill attributed to PICT and other non-financial assets; as well as higher interest and financing charges on short-term and long-term loan availments. This was partially offset by lower Covid 19-related expenses.

Capital expenditures, excluding capitalized borrowing costs, amounted to US$336.32 million in 2023. These were mainly for expansionary projects at CMSA in Manzanillo, Mexico, Manila International Container Terminal (MICT) in the Philippines, VICT in Melbourne, Australia, ICTSI DR Congo S.A. (IDRC) in Matadi, Democratic Republic of Congo, ICTSI Rio in Brazil, and ICTSI Nigeria in Onne, Nigeria; and the initial development in 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.

ICTSI is a leading global developer, manager and operator of container terminals in the 50 thousand to 3.5 million TEU/year range. ICTSI operates in six continents and continues to pursue container terminal opportunities around the world.