Aboitiz Equity Ventures (AEV) is intensifying its investments this year as it looks to spend P76.7 billion in capital expenditure (capex) following a positive outlook in the country’s economic growth, especially in the power and infrastructure sectors.
This is an 83 percent increase in its capex allocation from the P42 billion spent last year.
“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 I. Aboitiz said.
Majority of the firm’s budget will be used to fund key projects in power and infrastructure.
Its power SBU’s capex is poised for P58 billion as the company commits to increase its total capacity to 4,000 megawatts by 2020. Bulk of its capex will go to its ongoing power generation projects.
On the other hand, Aboitiz has pegged P8.1 billion for infrastructure, the firm’s newest and fifth leg.
Aboitiz Group is allocating P5 billion for its land SBU, which is slated to gather more industrial and residential properties as part of its expansion outside Cebu and into other parts of the country.
Its banking and financial services SBU will get P3 billion and its food SBU has been allocated a P1.7 billion fund.