Aboitiz holding firm allots P77 B for capex

MANILA, Philippines - Aboitiz Equity Ventures Inc. has allotted P76.7 billion for capital expenditures this year, mainly to bankroll key projects in power and infrastructure.

AEV president and CEO Erramon Aboitiz said the group would increase its presence in power and infrastructure amid an improving economy.

“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. 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 andinfrastructure,” Aboitiz said.

For power, AEV will spend P59 billion in a bid to increase total capacity to 4,000 megawatts by 2020.

For infrastructure, the Aboitiz Group’s newest and fifth leg, AEV is allocating P8.1 billion.

For the property business, AEV is setting aside P5 billion to acquire more industrial and residential properties as it continues to expand its business outside of Cebu. A total of P3 billion will go to operating expenses, P1.2 billion for new businesses, and P787 million for expansion and upgrades.

It is pouring in P3 billion for the banking and financial services 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 group, AEV is alloting P1.7 billion 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 South East Asian Nations (ASEAN) region while diversifying national operations.