Listed Aboitiz Equity Ventures Inc. (AEV) earmarked P48 billion in capital expenditures (capex) for this year to complete some of its projects and expand facilities.
In a statement on Tuesday, the Aboitiz-led holding company said the amount was a 69-percent increase from the P29 billion spent in 2020.
Nearly half of the amount — P23 billion — is allotted for power arm Aboitiz Power Corp. It will be used to finish its 1,336-megawatt GNPower Dinginin coal-fired power plant in Mariveles town, Bataan province, as well as for battery energy storage projects.
Another P13 billion is allocated to another unit, Aboitiz InfraCapital Inc., for the construction of several projects. These include its common towers and Apo Agua Infrastructura Inc.’s bulk water supply project with the Davao City Water District.
About P2 billion is earmarked for Republic Cement and Building Materials Inc.
AEV’s food segment has set aside P4 billion to expand its feed mills. Two feed facilities in China, one fish feed line in Malaysia and three meat distribution channels in the Philippines are set to be completed this year.
Property subsidiary Aboitiz Land Inc. allotted P3.1 billion for landbanking activities and to finish its residential projects in the provinces of Batangas, Tarlac, Pampanga and Nueva Ejica.
Banking arm Union Bank of the Philippines will spend more than P2 billion to further enhance its digital touch points and build an innovation hub to support customers’ needs.
“We continue to invest in our country to support economic recovery and growth as millions of Filipinos are relying on us — families and communities. Our team members take this responsibility to heart,” Aboitiz Group President and Chief Executive Officer Sabin Aboitiz said in the statement.
“Over the next 10 years, we commit to investing in capacities to advance business and communities in the nine Asia-Pacific countries where we operate,” he added.
Last week, AEV reported that its net income declined by 30 percent to P15.4 billion last year from P22 billion in 2019. Of its units, power contributed 52 percent of the amount; financial services, 32 percent; food, 12 percent; infrastructure, 2 percent; and real estate, 2 percent.
For the fourth quarter alone, its consolidated net income jumped by 13 percent year-on-year to P7.1 billion from P6.3 billion.
AEV shares lost P2.20 or 5.82 percent to finish at P35.60 each on Tuesday.