LISTED port operator International Container Terminal Services, Inc. (ICTSI) saw its attributable net income climb by 24.2% to $212.03 million for the third quarter (Q3), driven by higher revenues for the period.
“Our strategy is centered on our international portfolio, and its diversity has enabled us to capitalize on growth opportunities globally,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement on Tuesday.
For the August-to-September period, the listed port operator recorded combined revenues of $691.7 million, marking a 16.3% increase from the $594.88 million in the same period last year.
The company’s higher revenue for the third quarter was primarily driven by its operations in Asia, which generated $291.61 million. Operations in the US contributed $264.15 million, while the EMEA (Europe, Middle East, and Africa) region added $135.94 million to the total revenue.
For the third quarter, the company handled a total of 3.29 million twenty-foot equivalent units (TEUs); Asia accounted for 1.76 million TEUs, the US at 858,208 TEUs, and EMEA at 673,317 TEUs.
“We are confident in our outlook and well-positioned to deliver future growth,” Mr. Razon said.
For the nine months to September, ICTSI’s attributable net income grew by 30.6% to $632.58 million from $484.54 million in the comparable period last year despite posting higher gross expenses during the period.
The company’s gross revenue for the period went up to $2.01 billion, marking a 14.2% increase from $1.76 billion in the same period last year.
ICTSI recorded a gross expense of $921.07 million in the first nine months, higher by 5.4% from $873.7 million previously.
Broken down, its operations in Asia accounted for the majority of its revenues in the nine months to September at $828.49 million, followed by contributions from the US, which generated revenue of $803.56 million, and EMEA at $381.32 million.
For the first nine months of 2024, ICTSI handled a combined volume of 9.60 million TEUs, higher by 1.6% from the 9.45 million TEUs handled in the same period last year.
The company attributed this volume growth to the impact of new services and improvement in trade activities at some terminals, particularly the contribution of Visayas Container Terminal (VCT) in Iloilo, Philippines, the company said.
Still, in terms of volume, Asia remains the company’s growth driver with 5.22 million TEUs handled in the January to September period; the US at 2.55 million TEUs, and EMEA at 1.84 million TEUs.
For the January-to-September period, ICTSI said its capital expenditures (capex) amounted to $298.63 million, or 66.4% of its $450 million capex allocated for 2024.
ICTSI currently operates on six continents and will actively seek opportunities to pursue container terminal opportunities across the globe, the company said.
Its capex budget for 2024 was mainly allocated for the completion of Phase 3A expansion in Contecon Manzanillo S.A. in Mexico; initial development in VCT and East Java Multipurpose Terminal in Indonesia, as well as the ongoing expansion in Manila International Container Terminal and ICTSI D.R. Congo S.A. in the Democratic Republic of Congo.
At the stock exchange on Tuesday, shares in the company gained P4, or 0.99%, to close at P409 apiece. — Ashley Erika O. Jose