Aboitiz Group set P69B capex for 2022, up 152%

Conglomerate Aboitiz Group on Friday said it earmarked P69 billion in capital expenditures (capex) this year, 152% higher than the P27 billion the company spent in 2021.

In a statement, Aboitiz Group said the substantial budget increase will be used to fund the company’s growth plans for 2022 and beyond “as it approaches the coming years with balanced optimism.”

The company said its infrastructure business units will get the biggest share of the 2022 capex, allocating P29 billion — a 337% increase from last year’s actual spending.

Meanwhile, allocation for land acquisition and new site development for Aboitiz InfraCapital’s (AIC) economic estates amounted to P7 billion, while P5 billion is earmarked for the expansion of AIC’s-telco tower business and another P5 billion for AIC’s other digital infrastructure projects.

The company has also set aside P3 billion for the completion of AIC’s bulk water project in Davao City this year.

“Once operational, this water project will supply over 300 million liters of safe and sustainable water to Davaoenos daily. The rest of the budget will be for AIC’s other projects and Republic Cement’s major maintenance and safety related capital expenditures,” it said.

AboitizPower will get a P28 billion budget for the development and construction of various solar power, hydro power, and battery energy-storage systems, and the continuous improvement of the reliability of baseload plants.

Aboitiz’s banking business, UnionBank has allocated more than P3 billion to sustain its investments in enhancing the features of its digital channels and platforms, transforming its branches and building capacity for the parent bank and its subsidiaries.

The company said UnionBank’s banner projects for 2022 will be the acquisition and integration of the Citi consumer business and launch of its digital banking arm UnionDigital.

The bank is also on track to open its Innovation Campus in San Pedro, Laguna and continue its cloud transformation initiative to further improve the agility of its business operations, according to Aboitiz Group.

The company’s food business unit, Pilmico and Gold Coin Group, have allocated P6 billion for its various projects including the expansion of feed mills in China and Vietnam.

Both firms are set to increase the capacities of the agribusiness division across the regions, Aboitiz Group said.

“Here in the Philippines, a third breeder farm is set for completion this year. This puts the Farm business on track to achieve its goal of boosting local production of pork to help alleviate the impact of pork scarcity in the market,” it said.

On the other hand, the company’s real estate arm, AboitizLand Inc., has earmarked a capital expenditure of P2 billion for the launch of new phases of its projects – Foressa Mountain Town in Cebu and The Villages at Lipa in Batangas.

“Over the next 10 years, we will be more committed than ever to investing in accelerated growth and diversification. We will advance business and communities in the 9 Asia Pacific countries where we operate by providing products and services that are not just life-essential but life-changing,” said Aboitiz Group president and chief executive officer Sabin Aboitiz.—AOL, GMA News