International Container Terminal Services Inc. (ICTSI) said Thursday its net income grew 66 percent in 2024 on higher operating income and non-recurring gains.
The port operator led by businessman Enrique Razon Jr. posted a net income of $849.80 million last year, up from $511.53 million in 2023.
The increase in 2024 profit included nonrecurring income from settlement of legal claims at ICTSI Oregon in the first quarter of 2024 and the impact of the deconsolidation of PT PBM Olah Jasa Andal (OJA) in Jakarta, Indonesia.
The nonrecurring expenses in 2023 included the charge on goodwill attributed to Pakistan International Container Terminal (PICT) in Karachi, Pakistan and other noncurrent assets.
Excluding the impact of nonrecurring income and charges in 2023 and 2024, net income would have grown 23 percent to $830.94 million.
“While we continue to be mindful of the complex geopolitical backdrop, these results demonstrate the strength and resilience of our globally diversified origin and destination portfolio,” said Razon, ICTSI chairman and president.
“I would like to thank our ICTSI colleagues all over the world for their unwavering focus, hard work and dedication in delivering another outstanding year,” he said.
ICTSI handled consolidated volume of 13.07 million twenty-foot equivalent units (TEUs) in 2024, or two percent higher than 12.75 million TEUs handled in 2023.
The growth was mainly due to the impact of new services and improvement in trade activities at certain terminals and the contribution of Visayas Container Terminal (VCT), the new terminal in Iloilo, Philippines; partially offset by the decrease in volume at Contecon Guayaquil S.A. (CGSA), Guayaquil, Ecuador, the impact of expiration of the concession contract at PICT, Karachi, Pakistan, and the deconsolidation of OJA, Jakarta, Indonesia.
Excluding the impact of new operations in the Philippines and discontinued operations in Pakistan and Indonesia, the group’s consolidated volume would have increased by 5 percent.
Gross revenues from port operations in 2024 rose 15 percent to $2.74 billion from $2.39 billion in 2023 mainly due to volume growth with a favorable container mix, tariff adjustments, higher revenues from ancillary services, and growth in general cargo activities in certain terminals.
Consolidated cash operating expenses in 2024 were 10 percent higher at $727.25 million compared to $662.70 million in 2023.
The group’s estimated capital expenditures for 2025 is about $580 million, higher than $517.14 million in 2024.
The estimated capex will be used mainly for the continued development of the new project in Batangas; phase 3B expansion in CMSA, Manzanillo, Mexico; expansion of MICT Manila and IDRC, Matadi DRC; new expansion projects at ICTSI Rio, Brazil and Mindanao Container Terminal in Cagayan de Oro; and various other equipment acquisitions and upgrades; and maintenance capex.