INTERNATIONAL Container Terminal Services Inc. (ICTSI) on Monday reported that net income for the first quarter had jumped 36 percent to $209.88 million from $154.61 million a year ago, driven mainly by its international portfolio.
The Razon-led port operator said the result was due to higher operating income, interest and nonrecurring income from the settlement of legal claims, and a lower equity share in the net loss of joint ventures.
"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," ICTSI Chairman and President Enrique Razon said.
"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," he added.
Higher depreciation and amortization, interest on loans and lease liabilities, and the nonrecurring impact of the deconsolidation of Indonesian subsidiary PT PBM Olah Jasa Andal (OJA) partially tapered the first-quarter results, the port operator said.
"Excluding the income from the settlement of legal claims by ICTSI Oregon and the nonrecurring impact of the sale of PT PBM Olah Jasa Andal, net income attributable to equity holders would have grown 24 percent to $191.02 million."
Revenue from port operations amounted to $637.65 million, up 11 percent from last year's $572.25 million, while throughput remained largely flat from last year at 3.10 million twenty-foot equivalent units.
ICTSI said volume growth 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 in Karachi, Pakistan, the deconsolidation of OJA in Indonesia, termination of cargo handling operations at PT Makassar Terminal Services in Makassar, Indonesia, and a decrease in volume for Contecon Guayaquil S.A. in Guayaquil, Ecuador.
"Excluding the impact of discontinued operations in Pakistan and Indonesia, the Group's consolidated volume would have increased by five percent," it said.
ICTSI's capital expenditures (capex), excluding capitalized borrowing costs, amounted to $67.94 million for the quarter ended March 31
The Group's estimated capex for 2024, which includes $60 million carried forward from 2023, is about $450 million, it added.
The 2024 capex will be "utilized mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the ongoing expansion in Mexico, [the] 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 shares on Monday climbed by P5.00, or 1.46 percent, to P347 each amid a 0.56-percent rise for the benchmark Philippine Stock Exchange index. TMT