THE Aboitiz Group is setting aside P78 billion in capital expenditures (capex) this year, up 10 percent from P70 billion capex used in 2022.
In a statement, the company said this will be used to fund renewable energy investments, new businesses and innovation-driven initiatives.
Of the total capex, Aboitiz InfraCapital (AIC), the infrastructure arm of Aboitiz will get the lion’s share of 42 percent or P32 billion.
This will go towards the continuous expansion of AIC’s economic estates, telecommunication towers business, as well as new investments in digital infrastructure.
This will also fund the completion and maintenance of Apo Agua, its bulk water project in Davao City. Once operational, Apo Agua is expected to supply over 300 million liters of safe and sustainable water to Davaoeños daily.
Last year, AIC also got the largest capital investment at P42 billion. This was used for its airports, water, and telecommunication towers businesses, which are “showing impressive growth prospects,” the group said.
The group’s power unit Aboitiz Power, on the other hand, will build on the momentum from last year’s successes to support the country’s ambitions of cleaner and greener economic growth.
It will develop and construct 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, as well as for various land acquisitions, new substations, and new meters for its distribution business.
AboitizPower is also exploring new energy-adjacent opportunities, from energy storage systems to the Internet of Things.
Moreover, Aboitiz-led Union Bank of the Philippines will be spending P5 billion to fund the migration of the acquired Citi consumer banking business as well as continued enhancements of its digital channels.
Pilmico and Gold Coin, the food and agribusiness subsidiary of the Aboitiz Group, was allocated with almost P5 billion this year, mainly for its international feed mill expansions in Long An, Vietnam and Yunnan, China.
The group’s real estate arm, Aboitiz Land has been allocated P3 billion in capex to fund the construction and completion of its residential projects, including new project launches in Priveya Hills in Cebu and the Villages at Lipa in Batangas this year.