International Container Terminal Services (ICT) Q4 2023 earnings summary

Executive summary

• FY23 gross port revenue rose 6.5% to $2.388B; EBITDA increased 6.8% to $1.506B, while consolidated net income fell 14.2% to $581.1M, mainly on a $165.3M nonrecurring impairment.

• Excluding the impairment, MNHPI consolidation, and new and discontinued businesses, consolidated net income would have increased 8.6% YoY.

• Throughput reached 12.749M TEUs, up 4.4%; the portfolio comprised 32 terminal operations and development projects across 19 countries as of February 28, 2024.

Financial highlights

• Gross port revenue increased 6.5% to $2.388B; net port revenue rose 7.3% to $2.168B, reflecting MNHPI consolidation, tariff adjustments, volume growth, ancillary services, and favorable currency translation at some terminals.

• EBITDA grew 6.8% to $1.506B and EBIT 6.0% to $1.211B; EBITDA margin was 63.0% versus 62.8%, while EBIT margin was 50.7% versus 50.9%.

• Consolidated net income decreased 14.2% to $581.1M; parent-attributable income fell 17.3% to $511.5M. Basic EPS was $0.238 versus $0.287; diluted EPS was $0.237 versus $0.287.

• Income before tax declined 9.9% to $747.5M; excluding the impairment, MNHPI, and new and discontinued businesses, it would have risen 8.3%.

• Operating cash flow increased 2.0% to $1.300B; total cash and cash equivalents ended FY23 at $716.1M, down 14.6% YoY.

Outlook and guidance

• Estimated 2024 capex is $450M, primarily for ICTSI Rio, CMSA, MICT and IDRC expansions; EJMT and Iloilo development; equipment upgrades; and maintenance. Funding expected from cash, internal funds, third-party loans and, if needed, other fundraising.

• Berth 8 at MICT: Phase 1 was expected to finish in Q4 2024 and Phase 2 in 2027; Phase 1 and 2 add 300 meters of berth and 5.3 hectares of yard capacity.

• The Iloilo Commercial Port Complex, awarded in January 2024 under a 25-year contract, was expected to transfer to operations in Q2 2024.