Diversified investment holding company Ayala Corp. is reassessing its capital expenditure program for the year as global macroeconomic volatility forces a more cautious investment stance, though the conglomerate is keeping its earnings targets unchanged for now, according to president and CEO Cezar P. Consing.
Consing said the group had initially budgeted P220 billion to P230 billion in capital spending, signaling an expansionary posture across its portfolio at the start of the year. However, shifting external conditions, particularly renewed volatility in global oil markets, have prompted a review.
“That was before the oil shock. We were really preparing to ramp up,” Consing said. “Now we are reviewing that number because it may have to come down. It will likely be closer to last year’s level.”
Ayala’s capital expenditures last year reached about P180 billion, a figure now seen internally as a more realistic benchmark as the group recalibrates its plans.
Even with potential cuts, Consing stressed that investment levels remain substantial across the conglomerate’s core businesses, including banking, real estate, telecommunications, and energy.
“At that level, it is still a significant investment program,” he said, adding that Ayala is currently in a portfolio-wide calibration phase.
Despite the adjustment on spending, Consing said the group has not instructed operating companies to revise their income targets, signaling continued confidence in underlying business performance.
“We have not asked our CEOs to change their targets. It is still early,” he said.
The stance suggests Ayala is separating short-term macro pressure from medium-term operating expectations, opting to preserve earnings guidance while fine-tuning capital deployment.
The approach is often viewed as a balancing act. It means maintaining investor confidence on profitability while retaining flexibility on spending in case global conditions worsen.
Consing said the next two to three months will be critical in shaping a clearer macroeconomic outlook before any formal revisions are considered.
“We may revise targets later, but for now we are watching developments closely,” he said, underscoring a wait-and-see approach as the group weighs investment discipline against long-term growth opportunities in an uncertain global environment.
