Aboitiz Group earmarks P58.4-B capex this year

MANILA, Philippines – Conglomerate Aboitiz Equity Ventures is allocating P58.4 billion in capital spending this year, with its power unit taking the lion’s share of the budget.

The amount is slightly lower from the P60 billion earmarked by the company last year.

“Each of our businesses has the potential for higher financial return and growth, as well as sufficient scale and capability to deliver long-term value for all our stakeholders,” AEV president and chief executive officer Erramon Aboitiz said.

In a statement yesterday, AEV said energy unit AboitizPower would be receiving P52 billion of the group’s total capital expenditure this year as it remains committed to increasing its total capacity to 4,000 megawatts (MW) by 2020.

AboitizPower comprises about 75 percent of AEV’s business to date.

The power firm is targeting to launch its first solar power project in San Carlos City, Negros Occidental within the first quarter of the year.

Property unit AboitizLand will receive the second largest allocation of this year’s budget at P2.7 billion.

AEV said AboitizLand would use the funds to acquire more industrial and residential land as it continues to expand its business outside of Cebu and onto the national arena.

The group’s food unit is also expanding its customer reach within the Association of Southeast Asian Nation-member economies while diversifying operations in the country.

AEV said Pilmico is earmarking P2.3 billion this year in support of various initiatives for its flour, feeds, and farms divisions, as well as pursuing opportunities in the region.

Meanwhile, AEV said its banking and financial services units would receive a combined budget of P968 million this year.

UnionBank will get P871 million to push growth in customer businesses supported by loan expansion, while AEV’s new remittance business PetNet will receive P97 million for its branch network expansion.