Aboitiz Group to invest P73B in 2020
The Aboitiz Group has set aside P73 billion for capital outlays this year, hoping to help stimulate the domestic economy amid the coronavirus disease (COVID-19) pandemic.
“The COVID-19 crisis created a lot of uncertainty but we believe the Philippine economy can be shielded from further disruptions if the government and private sector focus on areas of collaboration,” Aboitiz Equity Ventures (AEV) president and chief executive officer Sabin Aboitiz said in a press statement on Tuesday.
The capital expenditure budget marks a 37-percent increase from the P53 billion spent by the group in 2019.
“The Aboitiz Group will deliver on our commitment to being the best in class in our industries. Learning from the challenges we have been experiencing in the past year, we will continue to adhere to global standards of operational excellence,” Aboitiz said.
“We see our businesses very resilient during these times. We provide stable and affordable power to support economic activity; we provide access to capital to entrepreneurs; we participate in government infrastructure projects to help generate jobs and spur economic activity; we provide feeds to farmers and fishermen, which they need to grow their livestock,” Aboitiz noted.
Of the total capital expenditure amount, P41 billion was allocated for flagship Aboitiz Power Corp. (AboitizPower), rising by 17 percent from the previous year. About 80 percent of the budget will be used for the completion of GNPower Dinginin Power Plants as well as other new businesses.
The infrastructure arm, Aboitiz InfraCapital Inc., has set aside the majority of its P16-billion allotment for the construction of its water businesses and its foray into airports and common tower businesses.
Aboitiz Land is expected to use P11 billion mainly for its landbanking efforts as it continues to grow its property developments in various parts of the country.
Pilmico Food Group has allocated nearly P3 billion for new businesses, expansion/upgrades and operating expenses, while banking arm Union Bank of the Philippines aims to sustain its investment efforts in its digital and branch transformation using a P2-billion budget for expansion/upgrades and operating expenses.
The Aboitiz Group has also activated its business continuity plan to mitigate the impact of the COVID-19 crisis. It has also adopted travel, quarantine, and hygiene measures based on the guidelines set by the Department of Health and World Health Organization. INQ
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