October 12, 2015

International Container Services Inc (ICT) cuts this year’s capex by half

The chairman of International Container Services Inc (ICT) told BusinessWorld in an interview that the company expects to spend just half of its US$530m programmed capex this year. This is in light of the slowing global growth. The company has spent US$136.7m in 1H15. However, the chairman said the company will still be on a lookout for any acquisition opportunities, including investments in airports.

Our take: The slowdown in acquisitions may take some toll on future growth given that most of the company’s growth has been largely driven by new investments. However, this is not to say that the company will not be having growth drivers in the meantime. It has completed a terminal in Argentina while the development of some projects is in full swing in Colombia, Congo and Australia. It has also just won a favorable court ruling on its case against a labor union in its port in Portland, Oregon which, if finally implemented, could improve the operations and eventually the profitability of the said court. – WealthSec