malaysiangMANILA: The Aboitiz Group is investing big in renewable energy (RE) projects this year, hiking the company’s capital expenditure (capex) to PHP153 billion, or more than double last year’s PHP65 billion.
The Aboitiz Group confirmed Thursday earlier reports that it earmarked PHP153 billion as this year’s capex, allotting a big chunk to RE projects in the pipeline.
‘Our substantial increase in capital expenditures is a clear reflection of our commitment to renewable energy. We believe that investing in sustainable energy sources is not just good for the environment, but also makes good business sense,’ Aboitiz Group president and chief executive officer Sabin Aboitiz said.
Its energy unit Aboitiz Power Corp. is allocated PHP73 billion, or 48 percent of the group’s spending this year.
‘The company has over 1,000 megawatts (MW) of disclosed RE projects in construction and development en route to hitting a target of 4,600 MW within the next decade,’ the Aboitiz Group said.
For this year, it targets to break gr
ound on various RE projects, such as the 89-MW peak Solar Project in San Manuel, Pangasinan, and a 50-MW wind plant in Camarines Sur in partnership with other energy companies.
Its holding company Aboitiz Equity Ventures (AEV) is getting PHP44 billion, or 29 percent of this year’s capex for the acquisition of Coca-Cola Beverages Philippines, Inc. (CCBPI), the bottling arm of Coca-Cola in the country.
Aboitiz InfraCapital will be spending PHP25 billion this year ‘to strengthen and optimize existing assets while sustaining its growth by exploring new projects and synergies within the Group.”
‘Another PHP1 billion is allotted for major maintenance works and the purchase of critical spares of the Group’s cement business under Republic Cement,’ it added.
Pilmico and Gold Coin Group, for its agribusiness expansion projects, is allocated nearly PHP4 billion this year.
Aboitiz Land, on the other hand, set a capex of PHP3.3 billion to support its ongoing projects
The company did not disclose the amount of Union
Bank of the Philippines’ (UBP) capex this year, but it said most of the allocation would be spent on UBP’s technology refresh, cybersecurity, and system integration.
‘As a techglomerate, we intend to redefine the meaning of industry and community in the digital age,” Aboitiz added.
Source: Philippines News Agency
