ABOITIZ Power Corp. president and chief executive officer (CEO) Erramon I. Aboitiz will step down next year, the company disclosed to the Philippine Stock Exchange.
During its regular meeting held on Monday, April 22, the board of directors of AboitizPower unanimously approved the appointment of Emmanuel V. Rubio as president and CEO of the company effective Jan. 1, 2020, and the retirement of Aboitiz.
Rubio, 54, is currently the chief operating officer of AboitizPower. He was appointed on June 1, 2018. He previously served as the company’s executive vice president and chief operating officer of the power generation group from 2014 to June 2018.
Before joining the company, Rubio was connected with Consolidated Industrial Gases Inc. Philippines, where he worked in various capacities, including vice president for sales and marketing from 1996 to 2001, and eventually, president from 2003 to 2007.
Meanwhile, Aboitiz Equity Ventures Inc. (AEV) and its partners have earmarked P81 billion in capital expenditures (capex) in 2019, the bulk of which will be used for power and infrastructure projects to sustain growth momentum over the long-term.
This is a 65-percent increase from roughly P50 billion utilized in 2018.
“The Philippines is in a sweet spot in our economic cycle, expanding 6.2 percent in GDP (gross domestic product) growth in 2018. And in 2019, AEV expects the Philippines to record a GDP growth rate of 6.8 percent due to election spending and public and private construction, supported by strong and continuing public expenditures on various infrastructure development projects,” said Aboitiz, who is also AEV president and chief executive officer.
“This is why we are quite confident in our capex program for the year. In the long term, we expect our economic growth to continue at a higher rate, providing our businesses a platform to continue advancing business and communities,” Aboitiz added.
This year, AboitizPower’s capex is set at P51 billion, about 80 percent of which is for baseload projects, mainly for the construction of GNPower Dinginin power plants, while the balance is allocated for exploratory and operating activities. AboitizPower believes that it is well-positioned to take advantage of opportunities arising from developments in the power industry.
Aboitiz InfraCapital is allotting P16 billion in capex, reflecting the group’s recent infrastructure-related investments and initiatives.
A huge chunk of its capex is for the construction of Apo Agua’s Bulk Water Project facilities in Davao City. Aboitiz InfraCapital remains committed to participating in the Philippine infrastructure space and contributing to the nation’s development. Republic Cement has also been investing in capacity expansion and debottlenecking efforts.
UnionBank will spend P2 billion for its ongoing digital and branch transformation initiatives.
Pilmico Foods Corp., the Aboitiz Group’s flour and feeds business, has earmarked P6 billion for various capacity expansions.
The acquisition of Gold Coin Management Holdings in 2018 has effectively expanded Pilmico and the Aboitiz Group’s footprint in Southeast Asia and across the Asia-Pacific market. Growth in the coming years is expected to be driven by project developments through capacity expansions and strategic acquisitions.
AboitizLand has also allocated P6 billion for its projects in Lipa City and Pampanga. (PR)