International Container Terminal Services Inc (ICTSI) posted a record-high net income of US$850 million in 2024, marking a 66 percent increase from $511.53 million in 2023, driven by strong revenue growth and effective cost management.
The global port operator’s revenue growth was driven by higher cargo volumes, a favorable container mix, tariff adjustments, increased returns from ancillary services, and increased general cargo activity in certain terminals.
Despite a 10 percent rise in expenses to $727.25 million, ICTSI maintained strong profitability, with consolidated EBITDA in 2024 growing 18 percent to $1.78 billion from $1.51 billion in 2023 and the EBITDA margin improving to 65 percent from 63 percent.
ICTSI’s chairman and president Enrique Razon Jr emphasized the company’s financial strength, highlighting its ability to reinvest in growth.
“Cash flow and balance sheet remain strong, with free cash flow up by 12 percent to $1.08 billion, giving us the financial strength and flexibility to pursue new opportunities and invest in existing projects,” Razon said in a statement on March 6.
The surge in ICTSI’s net income last year was partly driven by nonrecurring income from the settlement of legal claims at ICTSI Oregon in the first quarter of 2024, along with the impact of the deconsolidation of PT PBM Olah Jasa Andal in Jakarta, Indonesia.
According to its financial report, the company’s total cargo volume increased by two percent to 13.07 million twenty-foot equivalent units (TEUs), up from 12.74 million TEUs in 2023.
ICTSI attributed part of this growth to its Philippine operations, particularly the acquisition of the Visayas Container Terminal in Iloilo. The newly acquired terminal has bolstered cargo-handling capacity, contributing to the company’s overall expansion.
However, ICTSI also reported volume declines at Contecon Guayaquil S.A. in Ecuador, the expiration of its concession contract at Pakistan International Container Terminal in Karachi, and the deconsolidation of its operations in Jakarta, Indonesia.
“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,” Razon said.
The investments primarily funded the Phase 3A expansion of Contecon Manzanillo S.A. in Mexico, the berth extension at ICTSI Rio in Brazil, the acquisition of new equipment and developments at the Visayas Container Terminal in Iloilo, and the construction of a new container terminal at East Java Multipurpose Terminal in Indonesia.
ICTSI’s chairman and president Enrique Razon Jr.
$580 million investment for expansion
For 2025, ICTSI, to sustain its growth trajectory, is ramping up investments, allocating $580 million for infrastructure projects. According to the company, this budget will fund major expansion projects and infrastructure improvements at several key terminals.
Key initiatives include the continued development of its new Batangas project, the Phase 3B expansion of Contecon Manzanillo S.A. in Mexico, and upgrades at the Manila International Container Terminal and ICTSI DR Congo S.A. in the Democratic Republic of Congo.
Furthermore, the company is set to begin construction of an $800 million seaport in Bauan, Batangas, this year, as part of its long-term strategy to strengthen the country’s port infrastructure and enhance regional trade.
Located 120 kilometers south of Manila and nine kilometers west of Batangas City, the Bauan facility will serve as the premier international gateway for shippers in the CALABARZON region and the most modern container terminal in the country.
All photos credit: International Container Terminal Services Inc
Top photo: Manila International Container Terminal
