AEV sees upbeat growth for Cebu business units

CEBU, Philippines - Aboitiz Equity Ventures (AEV) remains bullish as it projects an impressive growth performance for its business units in Cebu this year even with changes of leadership in the government.

Jaime Jose Y. Aboitiz, AboitizPower distribution business group executive vice president and chief operating officer of Visayan Electric Company (VECO) said in an interview yesterday that Aboitiz companies are on track with their respective expansion plans largely banking on the country’s rosy economic path.

However, despite the strong confidence on its business growth in Cebu, Aboitiz is a bit worried of Cebu’s worsening traffic situation.

"Aside from robust growth in the economy, other factors such as the International Eucharistic Celebration which brought tourists in Cebu, the prolonged El Niño which necessitated the use of cooling systems, and this year's presidential election," Aboitiz said adding that these factors contributed largely to the impressive growth for the first quarter of this year.

This year, VECO expects to grow by 5.3 percent in sales.

Aboitiz also mentioned VECO's continues works on its underground cabling project, which is currently on Phase 1-B.

 According to VECO senior vice president and chief operating officer (COO) Anton Mari G. Perdices, the underground cabling project is a continuation of the initial implementation compliant to the Cebu City Ordinance 1894 in building utility structures and distribution underground.

"The project is concentrated on Osmeña Boulevard, from the Provincial Capitol to P. del Rosario Street," added Perdices.

Meanwhile, the conglomerates' real estate development arm, Aboitizland, is setting aside at least P5 billion for its project this year.

AboitizLand president and chief executive officer Andoni F. Aboitiz said that this capex will be used for the initial expenditures of new projects, as well as fund the completion of ongoing projects.

  The P5 billion budget excludes the company’s huge investment incurred recently via its partnership with Ayala Land Inc. in Cebu.

This year’s capex, Andoni Aboitiz said will be spent for its five projects, mostly in Luzon.

  AEV posted a consolidated net income of P5 billion for the first quarter of this year, which is a 24 percent improvement over the same period last year.

The double-digit growth of the company in the first three months of 2016 is mainly driven by the strong performance of its power, banking and financial services, as well as infrastructure business units. (FREEMAN)