Aboitiz Equity Ventures Inc. has boosted its capital expenditures this year by 10 percent to P78 billion from P70 billion last year.
A big chunk of that are investments in renewable energy and new businesses as part of its portfolio diversification and innovation-driven growth plans.
“By embracing a bold vision of sustainable progress, we are not only transforming our business but also making a positive impact on our country. 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,” AEV president and CEO Sabin M. Aboitiz said.
This year, AEV said it will sustain its momentum of diversifying its business mix, particularly in the infrastructure segment.
Its infrastructure unit will spend almost P32 billion or 42 percent of AEV’s budget. This will fund the continued expansion of Aboitiz InfraCapital’s economic estates, telecommunication towers business, as well as new investments in digital infrastructure.
AboitizPower Corp. and its partners will develop various solar, geothermal, hydro and wind projects to help fuel growth and realize its aspiration of having a 50:50 balance between its renewable and thermal portfolios by 2030.
There will also be investments for improving the efficiency and reliability of existing baseload plants critical in powering the country’s economic progress, as well as for various land acquisitions, new substations, and new meters for its distribution business.
As it seeks to grow beyond its core business of electricity generation and distribution, AboitizPower is also exploring new energy-adjacent opportunities, from energy storage systems to the so-called Internet of Things.
Aboitiz-led Union Bank of the Philippines has capex of over P5 billion, a portion of which will fund the migration of the acquired Citi consumer banking business and continued enhancements of its digital channels and feature builds to accelerate its aspiration of becoming a leading consumer bank.
Pilmico and Gold Coin, the food and agribusiness subsidiaries, have been allocated almost P5 billion in capex this year, mainly for its feed mill expansion in Long An, Vietnam and Yunnan, China.
The group’s real estate arm, Aboitiz Land Inc., has budgeted almost P3 billion for the construction and completion of its residential projects. This year will see new project launches in Priveya Hills in Cebu and the Villages at Lipa in Batangas.
