PLDT to raise 2023 capex

MANILA, Philippines — Integrated telco PLDT Inc. could raise its capital expenditures (capex) in 2023 from P85 billion this year to fund the rollout of its network expansion in the face of inflationary and recessionary risks.

In an interview with reporters, PLDT chairman Manuel V. Pangilinan said the telco giant is having difficulty staying within the capex guidance for 2022, especially as the peso’s weakening against the US dollar increases the cost of its imported equipment.

For the year, PLDT plans to spend a total of P85 billion on capex, particularly for the upgrade of its assets and expansion of its reach.

However, Pangilinan said that budget was crafted at a time when the peso was trading at 50 to a dollar, substantially lower than the current forex rate of around 59 to $1. Further, inflation has surged to record highs since then that even sister company Manila Electric Co. has to charge PLDT more.

“The power cost of PLDT has gone up significantly this year and [since it’s a] sister company, it’s difficult for me to referee. It’s afflicting everybody,” Pangilinan said.

“I think it’s too early to say [whether capex will rise in 2023] because we are still in the budgeting process, but even if we are just speaking about 2022, even if we try to stay within the capex of P85 billion, it’s going to get pushed up by the operation of forex,” he added.

PLDT president and CEO Alfred Panlilio also disclosed that 45 percent, or around P38 billion, of the capex is allocated for dollar-denominated expenses, which, Pangilinan said, include capital equipment from foreign suppliers.

“The capital equipment imported from Huawei, ZTE, Cisco, those are capital equipment bought in dollars,” Pangilinan said.

Around the Metro Pacific Group, Pangilinan said he wants toll road projects to be completed on time to ensure they stay within their intended costs. In particular, he instructed that the North Luzon Expressway (NLEX) Connector Road and Cavite-Laguna Expressway (CALAX) be done as scheduled within the year and in 2023, respectively.

“I’m pushing them to complete as soon as possible because costs are escalating if you delay. It is better to finish as soon as they can,” Pangilinan said.

The Connector Road extends the NLEX by eight kilometers to España and Sta. Mesa in Manila City and it is expected to serve about 35,000 motorists every day through its four-lane elevated expressway.

On the other hand, the final interchanges of CALAX, namely, Open Canal, Governor’s Drive and Kawit, are scheduled to be completed by 2023.