Aboitiz Group to spend P78 billion this year

MANILA, Philippines — The Aboitiz Group is allocating capital expenditures of almost P78 billion this year, 10 percent higher than the P70 billion utilized in 2022, as part of its continuing Great Transformation journey.

The capex will enable the Aboitiz Group to invest in renewable energy and new businesses for its portfolio diversification and to fuel its innovation-driven growth, said Aboitiz Group president and CEO Sabin Aboitiz.

“By embracing a bold vision of sustainable progress, we are not only transforming our business but also making a positive impact on our country. Our investments in renewable energy and innovation are paving the way towards a brighter future, and we are excited to be leading the charge towards a more sustainable tomorrow,” Aboitiz said.

The group has been diversifying its business mix, by betting bigger in the infrastructure segment.

The infrastructure unit will spend almost P32 billion, or 42 percent of the group’s capex.

This will go toward the continuous expansion of AIC’s Economic Estates, telecommunication towers business, as well as new investments in digital infrastructure.

Additionally, the capital will also be utilized for the completion and maintenance of Apo Agua, the Infrastructure unit’s bulk water project in Davao City. Once operational, Apo Agua is expected to supply over 300 million liters of safe and sustainable water to Davaoeños daily.

AboitizPower, the group’s power arm, will develop different renewable energy projects to help fuel growth and realize its aspiration of having a 50:50 balance between its renewable and thermal portfolios by 2030.

There will also be investments for improving the efficiency and reliability of existing baseload plants critical in powering the country’s economic progress, as well as for various land acquisitions, new substations, and new meters for its distribution business.

Union Bank of the Philippines has alloted over P5 billion in capex which shall be used for the migration of the acquired Citi consumer banking business as well as continued enhancements of digital channels and feature builds to accelerate its aspiration of becoming a leading consumer bank.

Aboitiz Land has allocated almost P3 billion for the construction and completion of its residential projects.

It has lined up new project launches in Priveya Hills in Cebu and the Villages at Lipa in Batangas.