ABOITIZ Equity Ventures, Inc. (AEV) said on Thursday that the group and its subsidiaries had set a P78-billion capital spending budget for 2023 to drive investments and innovation.
“By embracing a bold vision of sustainable progress, we are not only transforming our business but also making a positive impact on our country,” said AEV President and Chief Executive Officer Sabin M. Aboitiz in a press release.
This year’s capital expenditure (capex), which is 10% higher than the previous year’s P70 billion, comes as the group is focusing on investing in renewable energy and new businesses.
Of this year’s budget, 42% or P32 billion is allocated for Aboitiz InfraCapital, Inc., the infrastructure arm of the Aboitiz group. The funds will be used for the continued expansion of its economic estates, telecommunication towers, and new investments in digital infrastructure.
“The capital will also be utilized for the completion and maintenance of Apo Agua, the Infrastructure unit’s bulk water project in Davao City,” AEV said.
Its power unit Aboitiz Power Corp. will develop and construct projects in renewable energy, which includes solar, geothermal, hydro, and wind projects. The capex for its power unit was not stated.
“To help fuel growth and realize its aspiration of having a 50:50 balance between its renewable and thermal portfolios by 2030,” it said.
The company’s banking business, through Union Bank of the Philippines, will have a capex investment of P5 billion for the migration of Citi’s consumer banking business, which it had acquired.
Its food and agribusiness have allocated P5 billion for capex to expand its international feed mills in Vietnam and China.
Real estate subsidiary Aboitiz Land, Inc. is setting aside about P3 billion for the construction and completion of residential projects. The company subsidiary is set to launch a new residential project in Cebu and Batangas this year.
“Our investments in renewable energy and innovation are paving the way towards a brighter future, and we are excited to be leading the charge towards a more sustainable tomorrow,” Mr. Aboitiz said.
AEV shares rose 1.11% or 55 centavos to close at P49.90 apiece. — Adrian H. Halili