ICTSI docks record $850 million profit in 2024

MANILA, Philippines — Logistics giant International Container Terminal Services Inc. (ICTSI) posted an all-time high $850 million profit last year, and plans to follow this up with further expansion by raising its capital expenditures for 2025.

Based on its financial report, ICTSI said its net income went up by two thirds to $849.8 million in 2024, from $511.53 million in 2023, as revenue grew at a pace quicker than spending.

ICTSI chairman and president Enrique Razon Jr. said the company also raised its free cash flow to $1.08 billion, arming it with enough resources to undertake further expansion.

Revenue went up by 15 percent to $2.74 billion, lifted by tariff hikes with support of higher returns from ancillary services. Expenses increased as well, but just by 10 percent to $727.25 million, to pay for new assets needed to serve demand.

ICTSI’s consolidated volume picked up by three percent to 13.07 million twenty-foot equivalent units (TEUs) on the introduction of additional services in certain terminals. Further, the company saw its Philippine volume go up following its takeover of the Visayas Container Terminal (VCT).

“While we continue to be mindful of the complex geopolitical backdrop, the results demonstrate the strength and the resilience of our globally diversified origin and destination portfolio,” Razon said.

ICTSI also breached its capex guidance for 2024 of $450 million, as it invested $517.14 million in capacity expansion and new projects.

In the Philippines, ICTSI spent largely for the acquisition of larger equipment for VCT to enable it to dock bigger vessels.

Moreover, ICTSI invested in the expansion of its flagship Manila International Container Terminal (MICT). In particular, it is constructing Berth 8 for MICT that would add 200,000 TEUs in yard capacity once the project is completed in 2027.

Despite the heavy spending, ICTSI approved a 12-percent hike in capex this year, allocating a guidance amount of $580 million to finance multiple projects, including the $800-million terminal in Bauan, Batangas.

Likewise, ICTSI has lined up expansion works for MICT and the Mindanao Container Terminal in response to growing trade in the Philippines.

ICTSI is one of the world’s largest port developers in the 50,000 to 3.5 million TEUs per year range, with projects in six continents.