Razon’s International Container Terminal Services Inc. (ICTSI), which operates cargo ports in the Philippines and overseas, saw earnings increase 34 percent to $420.55 million during the first six months of the year.
“While we remain vigilant of continuing economic and geopolitical uncertainty, we have a proven and sustainable growth strategy which gives us confidence in our outlook and continued ability to generate value for all our stakeholders,” Razon, the chair and president of ICTSI, said in a stock exchange filing.
Expansion in the cards
“We have a robust balance sheet and cash generation is strong with free cash flow up 24 percent to $602 million which means we have significant headroom to invest for future growth,” added the billionaire, who was recently ranked the No. 1 richest Filipino with a net worth of $11.1 billion.
ICTSI reported a 13 percent increase in revenue from port operations, reaching $1.32 billion in the first half of 2024, driven by higher volumes, tariff adjustments, and favorable container mixes.
The company’s earnings before interest, taxes, depreciation, and amortization (ebitda) rose 19 percent to $864.99 million, with an improved ebitda margin of 65 percent.
Major spending budget
ICTSI spent $185.72 million on capital expenditures for ongoing expansions in Mexico, Brazil, the Philippines, and other key locations.
It has a total planned capital expenditure of approximately $450 million for 2024.
