Aboitiz Equity Ventures increases capex to P48B in 2021

Conglomerate Aboitiz Equity Ventures Inc. (AEV) has increased its capital expenditure this year in a bid to support the country’s economic recovery from the COVID-19 pandemic.

In a disclosure to the Philippine Stock Exchange on Tuesday, AEV said it earmarked P48 billion for its capital spending program in 2021.

The amount is 69% higher than the P29 billion it spent in 2020, the year that saw the economic contraction due to the pandemic.

"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. We simply cannot fail. 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,” said Aboitiz Group president and CEO Sabin M. Aboitiz.

Majority of the budget or P23 billion was earmarked for its strategic power business unit (SBU) Aboitiz Power Corp. for the completion of GNPower Dinginin as well as the battery energy storage projects.

The 1,336-megawatt (MW) GNPower Dinginin baseload power plant is currently being constructed in Mariveles, Bataan. 

AboitizPower is, likewise, adding to its portfolio a battery energy storage system project that will help ensure grid stability through sufficient ancillary services, starting with the installation of a 49-MW facility of business unit Therma Marine, Inc. in Maco, Davao de Oro.

Meanwhile, Aboitiz InfraCapital, Inc. (AIC) has set aside P13 billion to fund its various projects including its common towers project and for the construction of Apo Agua Infrastructura, Inc.’s bulk water supply project with Davao City Water District (DCWD) and other water projects.

About P2 billion will be earmarked for Republic Cement and Building Materials, Inc.

Aboitiz’s food group also allocated P4 billion mainly for feedmill expansion.

For 2021, two feed facilities in China, one fish feed line in Malaysia, and three meat distribution channels in the Philippines are slated for completion in order to support the group’s growth initiatives, the company said.

Aboitiz Land Inc. has earmarked P3.1 billion for its land banking activities and completion of its residential projects.

Currently, AboitizLand is working on Seafront Residences and The Villages at Lipa in Batangas, Ajoya Capas in Tarlac, Ajoya Pampanga in Pampanga and Ajoya Cabanatuan in Nueva Ecija.

Union Bank of the Philippines meanwhile, will sustain its investment efforts in its digital and branch transformation endeavors.

The bank allotted more than P2 billion in capex in 2021 primarily intended for continued enhancements on digital touch points, as well as constructing an innovation hub, to support customer needs during the COVID-19 crisis. —KBK, GMA News