International Container Terminal Services (ICTSI) posted a 66 per cent higher net income for full year 2024 compared to the previous year with the total reaching US$849.8 million.
The company's recurring net income was 23 per cent higher at US$830.94 million while throughput increased two per cent to 13.07 million TEUs during the same period. Revenues also saw an increase, climbing 15 per cent to US$2.74 billion.
ICTSI attributed the full year net income increase to higher operating income and interest earned from the extra-ordinary high cash balance, partially tapered by increase in interest on loans and lease liabilities related to concession renewal, and higher depreciation and amortisation.
Diluted earnings per share increased 72 per cent to US$0.407 in 2024 from US$0.237 in 2023.
The increases in net income attributable to equity holders for 2024 compared to 2023 included nonrecurring income from settlement of legal claims at ICTSI Oregon in Q1 2024 and the impact of the deconsolidation of PBM Olah Jasa Andal (OJA), Jakarta, Indonesia.
The nonrecurring expenses in 2023 included the charge on goodwill attributed to Pakistan International Container Terminal (PICT), Karachi, Pakistan and other noncurrent assets. Excluding the impact of nonrecurring income and charges in 2023 and 2024, net income attributable to equity holders would have grown 23 percent to US$830.94 million.
The growth in handled volume 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 (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 five per cent.
The growth in gross revenues from port operations in 2024 was mainly due to volume growth with a favourable container mix, tariff adjustments, higher revenues from ancillary services, and growth in general cargo activities in certain terminals.
This was partially reduced by volume-driven decreases in revenue at CGSA, Guayaquil, Ecuador; the impact of expiration of the concession contract at PICT, Karachi, Pakistan, the deconsolidation of OJA, Jakarta, Indonesia; and an unfavourable foreign exchange translation impact mainly from the depreciation of Brazilian Real (BRL)-, Nigerian Naira (NGN)-, Mexican Peso (MXN)-, and Philippine Peso (PHP)-based revenues.
Consolidated cash operating expenses in 2024 were 10 per cent higher at US$727.25 million compared to US$662.70 million in 2023. The increase in cash operating expenses was mainly due to higher volumes, including increases related to the growth in revenue generating ancillary services and general cargo activities in certain terminals, and government-mandated and contracted salary rate adjustments (including benefits).
This was tapered by continuous cost optimisation measures, the impact of the expiration of the concession contract at PICT, and favorable foreign exchange effects mainly of BRL-, NGN-, and PHP- based expenses.