Aboitiz group unveils P73-B capex, P41 B for power projects
By Myrna M. Velasco – March 19, 2020, 12:00am
from Manila Bulletin
The power business segment of the Aboitiz group will continuously corner the bulk of its capital expenditures (capex) this year, with an allotment of P41 billion vis-à-vis the conglomerate’s total capital outlay of P73 billion.
Effectively, that will account for more than 56-percent of the total capital spending that the Aboitiz Equity Ventures (AEV) had programmed for the current year.
AEV President and Chief Executive Officer Sabin M. Aboitiz acknowledged that “the COVID-19 crisis created a lot of uncertainty but we believe the Philippine economy can be shielded from further disruptions if the government and private sector focus on areas of collaboration.”
He stressed the conglomerate “will deliver on our commitment to being the best-in-class in our industries,” as he noted that while “learning from the challenges we have been experiencing in the past year, we will continue to adhere to global standards of operational excellence.”
The group’s capex spending for this year, it was emphasized, had been jacked up by 37-percent from last year’ P53 billion.
“Of the total capex amount, P41 billion was allocated for Aboitiz Power Corporation,” the company said, adding that such entailed an increase of 17-percent from last year’s allocation of P35 billion.
It added that roughly 80-percent of the capex “will be used for the completion of GNPower Dinginin power plants as well as other new businesses.”
Next in line for hefty capital spending is the group’s infrastructure investment unit – Aboitiz InfraCapital – which will be cornering P16 billion; while its real estate arm Aboitiz Land will corner P11 billion.
The Aboitiz group’s food business via Pilmico Food Group will be getting P3.0 billion, to be funneled mainly to new businesses, expansion and upgrades as well as operating expenses.
In addition, its Union Bank of the Philippines will have roughly steady capex of P2.0 billion that shall be channeled to its efforts on digital and branch transformation endeavors; and to also underpin expansion and upgrade programs as well as operating expenses.
On the infrastructure investment front, AEV said major spending of P3.0 billion last year was for its Apo Agua water project in Davao.
“Once online, the Davao bulk water project will supply 300 million liters of water per day to the Davao City Water District for the benefit of over a million Davaoeños,” the company said.
Further, the Aboitiz indicated that its Republic Cement is expecting 9.0-percent business growth this year given that cement prices have remained stable.
For the real estate segment of their ventures, the Aboitiz group said capital outlay shall be mainly dedicated for “land banking efforts as it continues to grow its property developments in various parts of the country.”
