Conglomerate Aboitiz Equity Ventures plans to jack up capital outlays this year by 83 percent to P77 billion, mostly to ramp up expansion in the power and infrastructure space.
“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 and infrastructure,” AEV president and chief executive officer Erramon Aboitiz said in a press statement on Friday.
Bulk of this year’s budget will be used to bankroll key projects in power and infrastructure.
The budget for the power business is estimated at P59 billion for the year amid plans, along with its partners, to increase total capacity to 4,000 megawatts by 2020. Bulk of the budget for this unit will be channeled toward various ongoing power generation projects.
For infrastructure, the Aboitiz group’s newest business leg, Aboitiz is allocating P8.1 billion in capital expenditure.
For the property sector, P5 billion has been programmed to acquire more industrial and residential properties as it continues to expand its business outside of Cebu, and into the national arena. About P3 billion will go to operating expenses and P1.2 billion will be spent for new businesses. Another P787 million will be for expansions and upgrades.
For the banking and financial services, P3 billion will be allocated for initiatives to drive growth in customer businesses and loan expansion, 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 business, P1.7 billion will be spent 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.