Aboitiz Equity Ventures hikes capex to P77 billion in 2017

March 17, 2017

Aboitiz Equity Ventures (AEV), along with its business units is increasing investments by 83 percent this year as it targets to spend P76.7 billion in capital expenditures (capex) versus P42 billion spent last year. “We support government’s efforts to implement 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,” Erramon  Aboitiz, AEV president and chief executive officer said in a disclosure to the Philippine Stock Exchange Friday. A bulk of this year’s budget will be used to bankroll key projects in power and infrastructure. The power capex is pegged at P59 billion for the year as it remains committed, along with its partners, to increase total capacity to 4,000 megawatts by 2020. Bulk of its capex this year will be channeled toward various ongoing power generation projects. For infrastructure (the Aboitiz Group’s newest and fifth leg), Aboitiz is allocating P8.1 billion in capex. For land, five billion pesos have been programmed to acquire more industrial and residential properties as it continues to expand its business outside of Cebu, and into the national arena. A total of P3 billion will go to operating expenses, P1.2 billion for new businesses, and P787 million for expansions and upgrades. For the banking & financial services SBU, P3 billion will be allocated for initiatives to drive growth in customer businesses and loan expansion, while P21 million will be used for network expansion of PETNET, the Aboitiz Group’s financial services unit, and full execution of CitySavings’ loan origination program. For food, 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 expanding its customer reach in the Association of Southeast Asian Nations (ASEAN) region while diversifying national operations. DMS