International Container Terminal Services Inc. (ICTSI) said Monday net income climbed 36 percent in the first quarter of 2024 on higher operating income, interest and non-recurring income from the settlement of legal claims.
The port operator posted a net income of $209.88 million from January to March, up from $154.61 million in the same period last year.
It said that 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 (OJA), net income attributable to equity holders would have grown 24 percent to $191.02 million.
ICTSI’s revenue from port operations amounted to $637.65 million in the first quarter, an increase of 11 percent from $572.25 million reported last year.
“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 said.
ICTSI handled consolidated volume of 3,090,118 twenty-foot equivalent units (TEUs) in the first quarter of 2024, 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 in Makassar, Indonesia and decrease in volume in Contecon Guayaquil S.A. [CGSA] in Guayaquil, Ecuador,” ICTSI said.
Excluding the impact of discontinued operations in Pakistan and Indonesia, the group’s consolidated volume would have increased by 5 percent.
ICTSI’s capital expenditures, excluding capitalized borrowing costs, amounted to $67.94 million for the quarter ended March 31, 2024.
The group’s estimated capital expenditures for 2024, which includes $60 million of capex carried forward from 2023, is about $450 million.
The estimated capital expenditure will be used mainly to complete the expansion in Brazil and the development of EJMT in Indonesia; continue the 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.