To bankroll key power, infra projects
A BOITIZ Equity Ventures (AEV) on Friday said it has earmarked P77 billion in capital expenditures this year, significantly higher than last year’s P42 billion spending, bulk of which will be used to bankroll key projects in power and infrastructure.
In a statement, AEV President and Chief Executive Officer Erramon Aboitiz said that the company is ramping up investments by 83 percent this year amid sustained optimism over the country’s economic growth prospects, particularly in the power and infrastructure sectors.
“The Aboitiz Group enters the New Year optimistic about our economy and our national leadership. We support government’s efforts to implement the necessary reforms to ensure inclusive growth for the greater good,” Aboitiz said.
“This year, the Group will take even more deliberate steps in bringing progress to communities in line with our strategic objectives, particularly in our key growth areas of power and infrastructure,” he added.
Bulk of the group’s capex this year will be channeled toward various ongoing power generation projects.
Specifically, capex for the power strategic business unit (SBU) is pegged at P59 billion this year as it remains committed to increase total capacity to 4,000 megawatts (MW) by 2020.
For infrastructure—the Aboitiz Group’s newest and fifth leg—Aboitiz is allocating P8.1 billion in capex.
For the land SBU, P5 billion has been programmed to acquire more industrial and residential properties as the group continues to expand its business outside of Cebu, and into the national arena. A total of P3 billion will go to operating expenses, P1.2 billion for new businesses, and P787 million for expansions and upgrades.
For the banking and financial services SBU, P3 billion will be allocated for initiatives to drive growth in customer businesses and loan expansion, while P21 million will be used for the network expansion of PETNET, the Aboitiz Group’s financial services unit, and the full execution of CitySavings’ loan origination program.
For the food SBU, P1.7 billion will be spent to support various initiatives for its flour, feeds, and farms divisions while pursuing various regional opportunities. A total of P1.3 billion will be used for expansion and upgrade initiatives, while P434 million will go to operating expenses. Pilmico is currently expanding its customer reach in the Association of Southeast Asian Nations (ASEAN) region while diversifying national operations.
AEV is a publicly listed company of the Aboitiz Group with major investments in power, banking and financial services, food, land, and infrastructure.
WITH REICELENE N. IGNACIO