AEV sets P58.4B for capital spending

CONGLOMERATE Aboitiz Equity Ventures Inc. (AEV) has set aside P58.4 billion for capital spending this year, the lion’s share of which – like in previous years – will go to its flagship power business.

“Each of our businesses has the potential for higher financial return and growth, as well as sufficient scale and capability to deliver long-term value for all our stakeholders,” AEV president and chief executive officer Erramon Aboitiz said in a press statement on Monday.

Power arm Aboitiz Power, which accounts for 75 percent of the group’s business, has earmarked P52 billion for capital expenditures this year. This is in line with its commitment, along with its partners, to increase total power generation capacity to 4,000 megawatts (MW) by 2020.

AEV’s banking and financial services companies will have a combined capital spending budget of P968 million. Some P871 million had been set aside for UnionBank’s initiatives geared to push growth in customer businesses supported by loan expansion. Another P97 million was budgeted for the branch expansion of remittance arm PETNET as well as for the lending program of CitySavings Bank.

The group’s food unit Pilmico is expanding its customer reach in the Southeast Asian region while diversifying operations in the country. As such, this unit has allocated P2.3 billion this year to support various initiatives for its flour, feeds, and farms divisions, as well as to pursue
expansion opportunities in the region.

Property arm AboitizLand is spending P2.7 billion to acquire more industrial and residential land, as it continues to expand its business outside of Cebu, and onto the national arena.